Saturday, December 16

What You Need To Know About Subcontractor Insurance Coverage in Dallas, TX?

Subcontractor Insurance CoverageAre you about to hire a contractor in Dalas TX? Well, there are a couple of things you need to keep in mind about their insurance. Most often when you hire a contractor to do a job, they will in turn hire a subcontractor and just supervise the job. Since the subcontractor is working on your property, if they get hurt while working for you, they may sue you for negligence. You will be liable because under the law you are the overall employer. You should therefore find out the following about your subcontractor insurance to be on the safe side.

General Liability

If you have a general likability cover for your business, then you should be aware that it will not cover the subcontractor in case they get injured. What you need to do is ask them subcontractor to provide their own cover. Their insurance cover should cover all work place health hazards as well as damages on property. If possible, they should include your business as “Additional Insured.” When that is included on their general liability, your business will be included in their cover just as they are. That will give you an additional layer of protection.

Increased Premium Rates

It is possible for your insurance to increase your premium rate if they discover you have a subcontractor working for you without a cover. They will assume that you are the employer and you have simply not declared them as your employees. You could therefore end up paying for a general liability cover that your subcontractor should have had in the first place.

Nonsubscriber

According to the Insurance cover laws of Texas, if you are an employer and you have subcontractors working for your business without workers compensation, then you are required to inform the workers that they are not covered. They should be informed in writing by posting notices in the offices and workplace areas. When a new worker is hired, they should immediately be informed that you have not provided them with workers’ compensation. As a private employer, you will also be required to file an annual notice with Division of Workers’ Compensation (DWC), which is Texas Depart of Insurance.

Subcontractors Can Sue in Case of Injuries

When subcontractors get injured in your workplace, they can sue you as a nonsubscriber for damages. In most cases, they sue the person or entity that has the ability to pay for the damages and is culpable by law. In such cases, you will not argue in court that the worker was negligent and that caused the injury. You can also not argue that the injury was caused by another worker’s negligence. Finally, you cannot argue that the injured worker knew the dangers and accepted them voluntarily.

Workers’ Compensation

The Subcontractor Insurance Coverage laws in Dallas, TX do not require that all workers have a workers’ compensation. However, if private employers are working on public contracts, then they are mandated to have a workers’ compensation for their staff. That includes subcontractors hired by private business to work on public projects. It is therefore safe to ensure that all those working for your business during such projects have a workers’ compensation cover.

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