Location: 7 S. Warren Street, Dover, New Jersey

Contracts for Contractors with their Clients and Contracts for General Contractor and their Subcontractors

Contracts for Contractors – It is very important for ANY contractor who hires another contractor to perform jobs for that contractor to have an agreement (contract) between them.  ALL insurance companies require a WRITTEN CONTRACT. Besides complying with insurance requirements it provides protection and a legal means of defense for the contractor (GC) hiring subcontractors. Protecting your business is not just about insurance!

Insurance companies have gotten really strict with contractors who hire subcontractors. When sub-contractors do not carry the proper limits or don’t have proper policy coverage the general contractor’s policy ends up paying for the claims caused by sub-contractors.

Below find the requirements you MUST – SHOULD adhere to per ALL insurance companies.  Failure to comply will result in either cancellation, non-renewal of the policy or audit will pickup all subcontractors as employees, not as subcontractors. This will result in a large additional premium.

I must emphasize that ALL insurance companies have established these procedures, therefore changing companies will not solve the problem.


Risk management is reducing your chances of a claim / loss / injury / lawsuit / etc. When you get in your car, you put on your seatbelt to reduce the risk of injury to yourself in an accident. Risk management is requiring employees to wear hard-hats, steel-toes shoes, fall harnesses, etc. By requiring your employees to reduce their risk of injury keeps your costs down. By requiring the subcontractors, hired by you to comply with insurance requirements reduces the change of your insurance company to pay a claim on your behalf, therefore saving you money.

You will have to supply this agency and the insurance company with what is described below. Failure will result in cancellation / non-renewal and / or a large additional premium being charged.


Below find contracts that you MUST use between YOUR COMPANY and ALL subcontractors that you will be using in the upcoming year.  Approach all sub-contractors NOW and have them sign the contract. You must explain to them that if they do not comply, then you cannot hire them.


In addition to the contracts you much obtain certificates of insurance. Certificates are reflections of the insurance carried by the subcontractors.


Limits of one million per occurrence MUST
Two million aggregate per project MUST
Two million products and completed operations aggregate MUST
One million personal and advertising injury liability MUST


General liability SHOULD include YOUR COMPANY as ADDITIONAL INSURED FOR ONGOING OPERATIONS AND SHOULD include on the certificate forms CG2010, CG2038 or their equivalent

General liability SHOULD include YOUR COMPANY as ADDITIONAL INSURED FOR COMPLETED OPERATIONS AND SHOULD include on the certificate that form CG2037 or it’s equivalent is included in the policy.

(blanket forms can be used, however the certificate must include a copy of the form)

One million liability limits MUST
One million uninsured / under-insured limits MUST
If the subcontractor does not have vehicles insured under a commercial auto policy, then a separate Hired and Non-owned liability policy must be purchased which must have the liability limits of One million dollars SHOULD

Part one of the policy – statutory MUST
Part two – employer liability limits of: $1,000,000. SHOULD
Bodily injury by accident: One million each accident MUST
Bodily injury by disease: One million policy limit MUST
Bodily injury by Disease: One million each employee MUST
Also very important that the owner, LLC member, partner must be specifically included as insured and the certificate of insurance must show this. MUST

One million per occurrence
One million aggregate
Umbrella must include the following policies in the underlying list of policies
General liability
Commercial Auto
Workers Compensation

The following contracts were prepared by the legal department of Selective Insurance Company for use by their clients and general public use. Selective and this agency are supplying these contracts for reference only and urge the contractor to seek legal advise. The contracts are in Microsoft© Word© format and can be altered and customized with use of that software.

Contracts written in Microsoft WORD© – for download

Please contact this agency if you have any questions, need insurance or need additional help. 973-377-6100