May 14

Excavation: Uninsured Subcontractors

There are many risks that are faced in the site improvement and excavation line of business. Many of them are unable to be completely mitigated due to factors that are just out of a manager’s control.

However, there is one risk that excavation contractors have complete control over, and that risk is hiring an uninsured subcontractor.

In short, uninsured contractors are a huge red flag and should never ever be considered when looking to contract a third party for work. When an excavation contractor hires a subcontractor to do work for them, they really must carry at least general liability insurance.

The reason why the team at SitePro, an insurance program designed specifically for the needs of site improvement and excavation contractors, is so adamant about our insureds not hiring a subcontractor who has no general liability, is because after policy expiration it is common practice that an audit is performed on the annual policy term. If the insured cannot provide a certificate of insurance for the subcontractor, the client’s general liability will pick up the exposure. This means the payroll will be added to the audit and they will end up paying the general liability premium for the contractor who chose not to buy the insurance.

Contractors NEED to be aware they could be responsible for the payroll associated with an uninsured subcontractor’s work, and their estimated annual premium could rise. Make certain that a client’s subcontractors have their own general liability insurance, and only work with those who have it. It will protect their interests and their business.

For more information excavation and land improvement insurance and risk management, visit 

There are many risks that are faced in the site improvement and excavation line of business. Many of them are unable to be completely mitigated due to factors that are just out of a manager’s control.

However, there is one risk that excavation contractors have complete control over, and that risk is hiring an uninsured subcontractor.

In short, uninsured contractors are a huge red flag and should never ever be considered when looking to contract a third party for work. When an excavation contractor hires a subcontractor to do work for them, they really must carry at least general liability insurance.

The reason why the team at SitePro, an insurance program designed specifically for the needs of site improvement and excavation contractors, is so adamant about our insureds not hiring a subcontractor who has no general liability, is because after policy expiration it is common practice that an audit is performed on the annual policy term. If the insured cannot provide a certificate of insurance for the subcontractor, the client’s general liability will pick up the exposure. This means the payroll will be added to the audit and they will end up paying the general liability premium for the contractor who chose not to buy the insurance.

Contractors NEED to be aware they could be responsible for the payroll associated with an uninsured subcontractor’s work, and their estimated annual premium could rise. Make certain that a client’s subcontractors have their own general liability insurance, and only work with those who have it. It will protect their interests and their business.

For more information excavation and land improvement insurance and risk management, visit SitePro.

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