Chapter 15 – Using Subcontractors in Tennessee

Hiring subcontractors is not quite as detailed as hiring employees, it is not an easy task though if done right. From an insurance perspective, dealing with subcontractors is one of the most misunderstood subjects particularly when the subcontractors do not maintain Workers Compensation or when they have a propensity to periodically cancel their insurance coverage.

There are many concerns to consider, but in Tennessee, our government leaders have thought through these challenges and have created an up-to-date system to address many of the concerns. There is very little room for misunderstandings; except for those who may be uninformed.

The volatility of the exposure and hazards of using subcontractors creates uncertainty for the insurance companies and thus drives the cost of insurance and/or the availability of the best insurance programs, Loss Cost Multipliers and net rates. If a program is properly structured, insurance coverage monitoring and subcontracts in place, using subcontractors does not have to become a problem.

Chapter Fifteen will lay to rest any misunderstandings, reduce the exposure as well as the cost when using subcontractors. Details of the most effective risk transfer programs and contractual issues to consider are revealed. We will reveal methods to confirm that coverage is in effect for subcontractors as well as new methods to promptly become aware when a subcontractor drops insurance. There are some unique Workers Compensation laws for a Tennessee contractor – all will be simplified and each designee will be ready to sub out work.

-Check out the Introduction video for Chapter Fifteen-

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