Subcontractor

Published: | Updated: December 24, 2017

Definition - What does Subcontractor mean?

A subcontractor is contractor who is hired by a contractor to help him or her complete a job. Subcontractors are commonly used in construction. However, that is not the only industry they are used in. In the context of insurance, subcontractors are not always covered by the liability insurance policy of the contractor.

Insuranceopedia explains Subcontractor

Whether or not a subcontractor is covered by the contractor's liability insurance can have huge financial ramifications if an accident occurs that is caused by the subcontractor. For example, if a subcontractor on a construction site accidentally backs a truck into the structure, knocking it down, this could cost the contractor a lot of money if the subcontractor isn't insured. Many contractors require subcontractors to carry their own liability insurance before they will hire them. The same is often true for workers' compensation insurance.


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