Hiring subcontractors in the restoration business is a way of life. Very few owners of restoration firms appreciate how risky subcontractors can be or how easily this risk can be reduced.
As I look back on 10 years worth of loss records on the restoration firms we insure, more than 90% of the reported claims involve a subcontractor. The really bad losses involved a “pollutant.” In those situations it is very common for our client to have a lot better insurance coverage in place than the subcontractors they hire. Guess who’s insurance ends up footing the bill?