Insurance for Specialty Subcontractors

Commercial project work typically requires GL coverage of one million per occurrence and two million aggregate with completed operations coverage, workers comp at statutory limits, commercial auto of one million combined single limit, and umbrella coverage of at least one to five million dollars. You will also need to provide additional insured endorsements, primary and non-contributory language, and waiver of subrogation to the GC and project owner. Some projects additionally require pollution liability or inland marine coverage. ALKEME builds programs that meet these standard requirements so you can mobilize quickly when project opportunities arise.

The most effective way to reduce workers comp costs is to lower your experience modification rate by reducing claim frequency and severity. Implement a safety program focused on the specific hazards of your trade, require personal protective equipment use, conduct regular safety training, and establish a modified duty return-to-work program. Report all injuries immediately and work closely with your carrier on claims management. ALKEME also reviews your payroll classification assignments annually to ensure employees are coded in the correct class, because misclassification into a higher-rated code results in unnecessary premium charges.

Additional insured status gives the GC and project owner direct rights under the subcontractor GL policy for claims arising from the sub work. When an injured party sues the GC for an incident caused by a subcontractor, the GC additional insured endorsement on the sub policy triggers coverage for the GC defense and any resulting settlement or judgment. Without this endorsement, the GC own GL policy would respond first, and the GC would need to pursue the sub through contractual indemnification to recover costs. The additional insured endorsement provides a more direct and reliable risk transfer mechanism.

If your insurance does not meet the GC minimum requirements, you will typically be given an opportunity to obtain compliant coverage before mobilizing on site. If you cannot provide compliant certificates, the GC may exclude you from the project or, in some cases, may charge you for coverage under the project wrap-up program if one exists. Being turned away from projects due to insurance non-compliance is costly both in lost revenue and in damaged relationships with GCs. ALKEME proactively structures your program to meet the most common GC requirements so insurance compliance is never a barrier to winning work.