General Liability insurance will make a charge for everyone you have out in the field doing the work that could mess up and cause a bodily injury or property damage claim.

The rate they charge for employees, casual labor and uninsured subcontractors is about 10 times higher than the rate they charge for insured subcontractors. This is because they don’t expect to pay a claim if the subcontractor has his own insurance.

Work Comp insurance will also charge based on payroll for employees, casual labor and uninsured subcontractors. When they do the Audit, if you don’t have a certificate of insurance on file from your subcontractor showing that he has his own work comp policy, they will charge whatever you paid him as payroll for employees.

When in doubt contact us and we’ll be happy to clarify. For more tips check out our blog post on Best Practices.