Uninsured subcontractors can increase insurance costs

Subcontractors benefit companies in various industries like utility and construction with specialized knowledge to ensure product quality at a lower cost. However, these companies need to consider the additional liability risks associated with a subcontractor’s work and safety. Careless subcontractors that do not obtain proper insurance coverage can increase a company’s liability and negatively affect its financial results.

What types of insurance coverage does a subcontractor need? What happens when a subcontractor is uninsured without a company’s knowledge? Milliman’s Rachel Soich provides the answers in her article “Subcontractors: How a common business practice could lead to a mountain of insurance costs.”