What are the Specific Risks Faced by Subcontractors?
During their day-to-day work, subcontractors face a significant number of risks that can affect their own business and wellbeing, as well as that of the head contractor, the general public and other 3rd parties.
Many subcontractors believe they are covered by the head contractor’s insurance however most of the time this is not the case. This leaves the subcontractor open to a number of risks, for example:
- A building company subcontracts a plumber. He digs a ditch in the backyard of a property but doesn’t mark it clearly. A neighbour trips and fall into the ditch, resulting in injuries which the plumber is held liable for. Subcontractor Insurance may cover legal defence fees and a compensation pay out.
- An electrician is subcontracted to rewire part of a house. As a result of faulty wiring, a small fire breaks out which causes minor property damage. A Subcontractor Insurance policy may cover the cost of the repairs that the electrician was responsible for.
- A self-employed roofer is seriously injured on the job and as a result he cannot work for 3 months. His business overheads don’t stop, but his income does. Subcontractor Insurance may help him by paying a monthly benefit.
- A mechanic has her garage broken into and all of her tools stolen. She is unable to work without them. The Tool insurance component of her Tradesman insurance package may cover the financial costs of replacing these business items.
As a subcontractor, it is possible to reduce your risk at work by evaluating the risks you are exposed to and taking steps to minimise them. However it’s important to back up your prevention strategies with a comprehensive insurance policy that can fully protect your business, your assets and the general public in the event that something goes wrong.