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Building your business — Subcontractors are businesses or individuals that carry out work for a contractor as part of the larger contracted project. The independent contractor will then use their experience and specialized skill to complete the task.What insurance should a hired contractor have? Punch lists provide subcontractors with an organized document to follow in order to finish their contractual work. Independent Contractor vs. Employee. See if they have safety or construction citations. After the completed form is filed with the bureau, the excluded employees are barred from receiving workers' compensation benefits. 5.