The Risks and Rewards of Hiring a Subcontractor

Having a subcontractor can make your life as a business owner a little bit easier. Sometimes you just need to get things done fast, and instead of hiring on new employees, get an independent contractor to assist you. Subcontractors can help in areas that you may not have expertise in, or if you’re in need of some extra manpower. On top of that, they help with flexibility and reduce company costs. As long as you know what you’re getting into, subcontractors are very helpful.

If you’re not sure what comes with hiring a subcontractor, it’s important to do some research about it. There are also risks that you need to be aware of before taking this route. If you’ve hired a subcontractor and need commercial insurance, then contact your Glen Rock insurance agency, and check out this list of risks and rewards of hiring a subcontractor.

Are You Sure You’re Covered?

First things first: you need to make sure your business is covered in the event of a liability issue. Read over your contracts and make sure there’s nothing that you’re missing as a business owner. After the contracts have been discussed and looked over, it’s important to discuss what your limits are. Knowing the details of your coverage is the first step to reducing your business’s commercial liabilities.

What Do Subcontractors Offer?

Subcontractors offer a multitude of things, ranging from flexibility to integration. Subcontractors offer an area of expertise that people in your company might currently not have. They are able to assist with large projects and help with the overall productivity of your team, according to Handex Consulting. By outsourcing parts of your projects to a third party, then your team is able to focus on what they know best, without being weighed down by extra tasks that they may not be great at completing. The final thing that subcontractors offer is a way for your company to save money both short term and long term, as labor costs are reduced when utilizing a third party.

Is the Subcontractor Covered?

Once your contract gets the green light, the last thing you need to do is make sure that your subcontractor provides proof of their own personal insurance. If they don’t have that to cover themselves, then you’re taking a big risk by hiring them. Your commercial insurance policy will cover contractors, but in many cases subcontractors working on behalf of a business do not fall under the coverage bubble. Know your policy’s coverage and make sure that your subcontractors are taken care of.

 

About David G. Sayles Insurance Services

At David G. Sayles Insurance Services, we strive to protect the investments of homeowners like you. Our comprehensive policies are customized for you to provide the exact coverage you need. For more information, contact us today at (800) 439-0292.

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