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Why do we need subcontractor/insurance carrier information?

Most subcontractors are hired to complete a portion of a construction project that the hiring contractor is unable to complete. If you’re the hiring contractor, this creates potential liability for you. It’s important to ensure that the subcontractor you hire provides a certificate of insurance with coverage limits equal to or greater than your limits, while also naming you as an additional insured. This will help protect you from any actions on the part of the subcontractor which result in a general liability claim.

Contractors in Illinois should also learn about state employee classification laws. The purpose of these laws is to:  

  • Correctly classify workers as either employees or independent contractors and
  • Prevent the classification of employees as independent contractors to avoid paying employment costs such as workers' compensation insurance.