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Can a contractor that is contractually obligated to purchase insurance for its principal use that insurance policy to fulfill its obligation to indemnify the principal when it's not the named insured?
Wiki User
∙ 14y ago
The question is about as clear as mud. Is the contractor an individual or an incorporated business? Does "principal" refer to the owner of the company? Is the contractor, the business, and the principal, all the same person? Re-word and re-submit - in plain English please.
Wiki User
∙ 14y ago
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Would a commercial policy cover losses due to inability to oversee work if a contractor became terminally ill while working on an addition?
More than likely the contractor's insurance policy would not respond as his inability to complete the job is not a covered cause of loss on his liability form. There is a way to protect this exposure, however. Prior to awarding a contract to perform work by a contractor you can require a performance and payment bond. The insurance company will pay the money necessary to hire an alternative contractor(s) in his place to guarantee that the job will be completed. It is important to note, however, that a bond does not work the same way as a traditional liability policy. Where a traditional liability policy will indemnify the injured party subject to any applicable deductibles, a perfomance and payment bond requires the bonded entity to indemnify the insurer once they have met their obligation to the party holding the bond. In other words, the contractor will have to pay back the bond company any money paid to to insure the job is completed. This requires stringent underwriting and the disclosure of much financial information and the contractor's work load, often times requiring the contractor and spouse to individually indemnify the insurance company.
What does the word indemnify mean?
The word indemnify means to protect and compensate one for damage or loss. It is used in terms of insurance and companies have to indemnify their customers.
What insurance obligations does a contractor have to his subcontractors?
In theory when a PRIME contractor hires a SUBCONTRACTOR, and the SUBCONTRACTOR causes a loss, damage, injury, etc., then the SUBCONTRACTOR's insurance should pay the expenses related to that loss. If the PRIME contractor causes the loss, then the PRIME contractor's insurance will pay for the loss. If the SUBCONTRACTOR does not have insurance (lapsed, fake certificates, etc.), then the PRIME contractor's insurance will have to pay for the loss even when caused by the SUBCONTRACTOR. In the real world, all parties get sued after a damage or injury loss. Later they sort out which party or parties were at fault. Most Prime-Contracts now contain language that makes the PRIME CONTRACTOR indemnify and holdharmless the owner, meaning pay for their costs also. Likewise, most SUB-CONTRACTS now contain a language that makes the SUBCONTRACTOR indemnify and holdharmless the other parties. These are important and tricky legal concepts and should not be taken causually. Proffessional advice is always recommended. Some insurance companies will try to deny coverage if the PRIME contractor did not have an "indemnity/holdharmless" agreement in the sub-contract.
Does the owner or contractor purchase professional liability insurance?
Traditionally the contractor provides the Insurance. The owner verifies that the contractor has insurance prior to hiring that contractor.
What is another word for insurance?
please give another word that we can use instead of insurance
Is insurance a liability?
No, Insurance is a means of contractually transferring risk including the risk of liability to another entity, namely the Insurance Company issuing the policy.
What does an insurance contractor do?
The job of a insurance contractor is to find you the best deal possible for your insurance needs. This could be anything from motorcycle to mobile home insurance.
What is an insured contractor?
An insured contractor is a contractor who carries a Commercial General Liability Insurance Policy.
How can i get a copy of a contractor's liability insurance policy?
Ask the contractor for a copy.
What are the parties involved in Insurance?
There are two parties involved in an insurance contract. They are;Insurer: The party to an insurance arrangement who undertakes to indemnify for losses.Insured: The person, group, or property for which an insurance policy is issued.
A contractor and his subcontractor are working the same job and the sub damages the contractors equipment whos insurance pays?
The contractor should make a claim upon the sub-contractors insurance and/or bond. If the sub-contractor defrauded the contractor on having insurance and/or bonding in place then he should report the contractor to the State licensing board, file claim on their insurance, and civil lawsuit (if the insurance company does not directly file or pay).
Which companies offer IT contractor insurance?
There are several companies that offer IT contractor insurance. Hiscox, Markel UK, The Indemnity Brokers and Contractor UK are amongst the few that offer it.
