Are my subs my insurance exposure?

In effect, yes. Uninsured subs can be charged to your workers comp and their work can fall to your liability. Proper requirements and verified endorsements transfer the risk.

Is a certificate enough to protect me?

No. The additional insured endorsement behind the certificate is what protects you. We verify the endorsement, not just the certificate.

Who decides employee vs independent contractor?

That classification is a legal and tax question for your advisors and the relevant agency. We handle the insurance and risk-transfer side.

Independent Contractors & Subcontractors

Insurance issues around subs, uninsured subs, and COIs.

Using subcontractors and independent contractors creates real insurance exposure: classification questions, uninsured subs, and certificate and endorsement gaps. This explains the issues to manage, not legal advice on worker classification.

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Hiring subcontractors raises insurance and audit issues distinct from legal worker-classification questions: uninsured subs can fall to your liability and workers comp, and certificates without real endorsements do not transfer risk. Managing requirements, certificates, and endorsements is the insurance side.

The insurance exposure

Whatever a worker's legal classification, the insurance exposure is concrete: a sub's mistake can become your claim, and a sub who cannot prove coverage can have their payroll charged to your workers comp at audit. The hiring contractor carries that risk unless it is transferred through proper requirements and verified endorsements.

How to manage it

Require adequate limits, additional insured status on a completed-operations basis, the sub's own workers comp, and auto where they drive. Collect certificates and verify the endorsements behind them, and keep them current. Worker classification itself is a legal and tax question for your advisors; we handle the insurance and risk-transfer side.

Verify and document

Keep documentation, and confirm classification questions with your accountant or attorney and the relevant agency. This is general information, not legal advice. Rules vary by state and contractor type and should be verified with the licensing board, the relevant state agency, your contract, and your carrier.

Insurance issues around subs, uninsured subs, and COIs.

The insurance exposure

How to manage it

Verify and document

Common questions.

Make sure your coverage meets the requirement

Keep going.

Compliance Hub

Contractor Bonds

Workers Compensation

Line your coverage up with what you must prove.