Many business owners are trying to manage their expenses by outsourcing some work to contractors. And that’s usually a fantastic idea. Hiring subcontractors can help your business in Lincoln, NE, take on more work and operate more efficiently. But it can also expose you to risks you didn’t anticipate.

Business owners often assume subcontractors carry their own insurance and that’s it. You’re protected. Unfortunately, that’s usually not the case. Responsibilities are often shifted back to you, the business owner, either via exclusions, gaps, or sometimes even missing insurance coverage. That’s where Brokers Insurance Agency comes in and helps you analyze your commercial coverage before you sign anything.

How Subcontractor Agreements Can Create Hidden Exposures

Hidden in many contracts are "indemnity" or "hold harmless" clauses, which basically make you financially responsible even if your subcontractor caused the damage or injury on the job. The result? Without the right commercial insurance coverage, one incident can lead to costly claims and legal disputes.

Before work begins:

Require proof of insurance from your subcontractors, including liability and workers’ compensation. No proof, no work!
Verify that your business is listed as an additional insured party.
Check your own coverage limits with Brokers Insurance Agency to ensure your limits are adequate for your exposure.

The Right Coverage Keeps Your Projects and Reputation Secure

Running a successful business is all about managing and understanding risks. At Brokers Insurance Agency, we help Lincoln, NE contractors and small businesses structure their commercial insurance policies in a way that anticipates subcontractor risks. This often includes liability extensions, contractual liability protections, or umbrella coverage to expand your safety net.

Build With Confidence

Every project is a blessing if it is managed right. It brings opportunity, but it also leaves you with unexpected risks. Before you sign your next subcontractor agreement, make sure your commercial insurance adequately protects you and your business.

Contact Brokers Insurance Agency to review your coverage and keep your business building strong.

Accidental Damage Versus Negligence

In many cases, if a guest accidentally spills a drink on a carpet, breaks a lamp, or scratches a piece of furniture, your homeowners insurance won’t cover the loss. These smaller mishaps are usually considered part of the risk of everyday living. Coverage is more likely to apply if the damage is significant, such as a fire started by a guest’s mistake, or if negligence leads to a serious problem. Every policy has limits, so reviewing the details makes a difference.

Liability Coverage Explained

Another angle to consider is liability coverage. If a guest damages another person’s property while staying in your home, or if they’re injured themselves, liability protection may come into play. For example, if someone visiting your home accidentally floods the downstairs bathroom, the liability portion of your policy could help cover the resulting repairs. This is where the policy language becomes especially important, since coverage varies widely.

Why Reviewing Policies Matters

The line between covered and uncovered damage can be confusing. Some homeowners assume every mishap is insured, while others think nothing will be covered. The truth lies somewhere in between, and clarity comes from reviewing the specifics of your policy. Our insurance agents can explain exclusions and highlight options for additional protection if needed.

Accidents caused by guests are part of everyday life, but with the right coverage and clear expectations, homeowners can handle them with less stress and fewer financial surprises. Contact Brokers Insurance Agency serving Lincoln, NE, to learn more.