Protecting Your Business: General Liability Tips for Contractors and Subcontractors
By BIS Improved Insurance Agency | Morris Plains, NJ
If you’re working in the construction industry—whether as a general contractor or subcontractor—understanding your general liability insurance obligations is crucial. From additional insured endorsements to subcontractor agreements, making the right coverage choices can protect your business from costly surprises.
👷♂️ Are You Naming a General Contractor as an Additional Insured?
If you're a subcontractor, chances are you’re being asked to name the general contractor as an additional insured on your general liability policy. This is a common industry requirement, but it’s important to understand what it means for your business.
Key point:
When you add someone as an additional insured, you may be sharing your policy limits with them. This could reduce the coverage available to your own business in the event of a claim.
✅ Solution:
Make sure your general liability limits are high enough—and consider purchasing an excess liability or commercial umbrella policy to increase protection.
📄 General Contractors: Do You Have Subcontractor Agreements in Place?
If you’re hiring subcontractors, it’s not just good practice—it’s standard to require a written and signed subcontractor agreement.
Why it matters:
These agreements hold you harmless and ensure subcontractors indemnify you for any negligent acts on their part.
It protects your business legally and financially in case something goes wrong on the job site.
At BIS, we can provide you with a sample subcontractor agreement to help you get started.
📋 Don’t Forget the Insurance Certificates
Every subcontractor should carry at least $1 million in liability coverage—and it’s critical to collect certificates of insurance before work begins.
Why?
These certificates are often required during your own general liability audit.
Without them, you could be charged additional premiums or have gaps in coverage.
💡 Final Thoughts
Whether you’re a general contractor or subcontractor, protecting your business starts with having the right documents, coverage, and risk management strategies in place.
At BIS Improved Insurance Agency, we specialize in helping contractors across NJ, NY, and PA get the coverage they need—without the confusion. Contact us for a policy review, a quote, or to request a sample subcontractor agreement.
📞 Call us today: 973-683-1000
🌐 Visit: www.bisrm.com
📍 Proudly serving Morris Plains, Roxbury, Randolph, and all of Northern NJ.
