Penn National Insurance follows certain guidelines to determine if a subcontractor is adequately insured.

For General Liability Policyholders

  • Adequately insured subcontractors
    For companies in the contracting and service industries, the cost of subcontracted work associated with adequately insured subcontractors is assigned to the appropriate Contractors Subcontracted Work classification.
  • Inadequately insured subcontractors
    These subcontractors are classified and rated as if they were your employees.

Penn National Insurance considers a subcontractor adequately insured when you produce a certificate of insurance for that subcontractor showing an occurrence limit of liability equal to that of your business policy or $500,000, whichever is less.

For Workers' Compensation Policyholders

You should secure a certificate of insurance from each independent contractor that shows they have Workers’ Compensation insurance.

Read more about Certificates of Insurance >

Workers’ Compensation premium is determined by how many employees you employ. Make sure you understand how we distinguish between employees and independent contractors. Read more >