Guide To Subcontractor Insurance

Written by Banks Editorial Team
3 min. read
Written by Banks Editorial Team
3 min. read

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You’ve worked hard to establish your business as a reputable commercial contractor. Or maybe you’re just starting out and working tirelessly to build your company. Either way, it’s imperative that you take the necessary steps to protect any assets belonging to you and your company, starting with buying subcontractor insurance. 

Billd Commercial Construction Financing

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Billd is a payment solution that allows construction contractors to offer 120-day terms to pay for materials and suppliers to sell more.

What Is Subcontractor Insurance? 

Subcontractor insurance is a form of business insurance that provides financial protection for your construction business in the event of a work-related incident. 

Why Does a Subcontractor Need Insurance? 

Subcontractors need insurance to protect the business from financial losses in the event of a lawsuit, along with other liabilities that could result from accidents or injuries to workers while on the job. It’s also mandatory in some instances, and you won’t be allowed to commence work on the project until you can prove that you have adequate coverage. Otherwise, general contractors or individuals overseeing projects may look elsewhere for contractors who are already insured.

How Much Does Subcontractor Insurance Cost?

It varies by your line of work, the level of risk it poses, and the number of individuals you employ and vehicles in use. Before offering a quote, insurance providers will also consider the level of coverage you’re seeking and your claims history. 

What Does Subcontractor Insurance Usually Cover?

  • Bodily Injury: injuries sustained by a non-employee on your job site, both during and after the job is complete 
  • Property Damage: damages caused by your team at the job site 
  • Medical Payments: these payments are covered by workers’ compensation if your employee is injured while on the job 

Types of Policies Under Subcontractor Insurances

  • General Liability Insurance Coverage: provides protection if damages to the job site or injuries occur on the job site (also known as Premises and Operations coverage) or after work is complete (also known as Completed Operations coverage) 
  • Workers’ Compensation Insurance: covers lost wages and medical costs for employees who sustain injuries or illnesses while on the job 
  • Automobile Liability Insurance: provides financial protection if your construction company owns or rents vehicles that are used for commercial purposes 
  • Contractor or Surety Bond: it’s typically required if you’re working on larger projects or public construction projects

Billd Commercial Construction Financing

141 Reviews
Billd is a payment solution that allows construction contractors to offer 120-day terms to pay for materials and suppliers to sell more.

Other Ways to Protect Your Construction Business Cash Flow Aside From Insurance

Ultimately, securing a subcontractor insurance policy is a good idea and can help protect your construction business from financial losses. It can also make your company more appealing to general contractors and result in more contracts for your company. Still, it isn’t the only way to shield your businesses from cash flow issues. 

Materials and supplies needed to commence construction projects can also be costly. And if you’re unable to come up with the funds to cover the costs, you could be forced to scale back operations. 

A better option: Billd, a payment solution that offers contractor materials financing so you can focus on what matters most, and that’s doing exceptional work. Billd covers material costs upfront with the supplier you choose, and you’ll have up to 120 days to repay what you owe. In turn, you won’t have to miss out on projects due to cash flow. Plus, you’ll minimize the risk of running out of funds altogether. 

Billd currently works with over 2,500 suppliers, and it has funded more than $41.3 billion in projects to date. 

Here’s how it works:

  • Step 1: Enroll online with Billd by inputting the requested information and agreeing to the Master Contractor Agreement. You must work in agriculture, commercial, government, industrial, multi-family or utility construction and earn annual revenue of $500,000 to $50 million. 
  • Step 2: Retrieve a material quote from the supplier of your choice (located in the U.S.) and submit it to Billd. 
  • Step 3: Billd remits payment to the supplier, generally the same or next business day by ACH unless the supplier opts to receive compensation by check. (Quick note: You’ll have the leverage to negotiate a discount on your order since you’re technically paying with cash).
  • Step 4: The supplier ships the materials to you, the contractor, right away. 
  • Step 5: You, the contractor, repay Billd within 120 days for the materials purchase. 

It’s that simple and only takes five minutes of your time. Even better, you’ll know if you’re approved for materials financing within 24 hours. 

Fill out a simple form to submit your details and learn more about how to enroll for free with Billd.

Billd.com

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