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What insurance obligations contractor have if subcontractor has no insurance and caused the loss?
Wiki User
∙ 8y ago
The primary contractor is going to have to cover the loss since the uninsured sub was working for them. It is the General contractors responsibility to make sure his sub-contractors were properly insured.
Wiki User
∙ 8y ago
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What is the purpose of third party liability insurance?
Third party liability insurance is useful if you are blamed for having caused an accident and someone wishes to file a claim against you. With third party insurance you are insured for claims up to a predetermined amount.
What are the benefits of an unoccupied house insurance?
Unoccupied house insurance provides a level of protection against losses/damaged caused by either natural disasters as well as acts of man-made vandalism that may take place.
Is the insurance company not liable for a house if they have already cut you a check for repairs and the work caused more extensive damages to make it not livable and has to be destroyed?
if the workers caused damaged it is a separate claim - a vast majority of policies have exclusions for fault, inadequate or defective workmanship and materials - hopefully you hired contractors with liability insurance in the event their actions are excluded by your homeowner's policy
What is does E and O stand for in real estate?
Most likely "errors and omissions" insurance that brokers typically carry to cover claims that they caused damages to a a party to a real estate transaction in which the broker was involved.
Why am I being held responsible for damage to someone elses property if it is being covered by their homeowners insurance?
When you damage someones property you are liable for the costs of that damage. If you fail to pay for the damage you caused and the homeowners insurance company pays the bill, Then you now owe the Insurance company what you failed to pay to the homeowner. Its no different from an Auto Insurance accident. If you were at fault or rather "Liable" for the accident and you fail to pay the bill. The other vehicles Insurance may fix their insureds car and send you the bill. Just because someone else has to pay for the damages you caused does not mean you don't still owe the money. They only paid because you failed to pay timely. Think about this for a minute What if you Robbed a Bank. Naturally the Bank is insured so they will get their money back right away. Does that mean the bank robber gets to keep the money he stole? Of course not. If and When the Bank robber is finally caught he will still owe back the money he stole. But since the bank has already been reimbursed by its Insurer you now owe that money to the Insurance company who covered the theft.
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.
Will homeowners insurance pay for structural damage caused by a contractor or sue the contractor on my behalf?
HO insurance policies are typically all risk and as such would cover such loss
What does Additional insured mean with regard to general liability?
You are the insured. Your landlord or partner or banker may be the additional insured. They have a financial interest in or liability at stake with whatever it is you are insuring. It does not cost you more to name an additional insured. Why didn't you aks your agent this question? Can the person I was working for withold money owed to me because I did not put him under additionaly insured? Not legally unless it was contractually noted. If you did not have a loss you can just add the additional insured now. In a contractor/subcontractor relationship the contractor may request the subcontractor to name him "additional insured". In the event that a liability issue arises and is caused by the work of the subcontracor, the subcontractor's insurance will not only cover any claims made against the sub, but will also provide claims made against the contractor in regards to the sub's negligence. Many insurance companies DO charge a flat fee or a percentage based fee to name an additional insured.
Why is general contractor insurance required?
Contractors will be required to carry a minimum of public liability insurance when working on sites. This provides indemnity against damage to property or persons caused by the contractor, his staff or his equipment.
You hit a car without car insurance?
If You hot a car and you do not have insurance to cover the damages you Caused. You can still meet your financial responsibility and legal obligations by paying for all the damages you caused yourself out of pocket. This is what the financial responsibility is all about.
Who is responsible for water damages caused by a faulty central air unit drain pan?
Home insurance Company, unless it is a new installation. Then the contractor`s insurance Company
Does insurance cover damage from thermal treatment?
No,, Your home insurance policy does not cover work performed by your chosen contractor. That's what the Contractors Liability insurance is for.Your contractor who provided the thermal treatment service should have General Liability Insurance to cover damages that were created or caused by the work they performed.Never hire a contractor without first verifying they have the appropriate coverage to protect their clients.
Does homeowners insurance cover damage to your neighbor's property caused by construction on your property?
Actually, This is covered under your Contractors General Liability Insurance. If your contracting builder does not have insurance, you need to get rid of him, and find another contractor immediately.
Will homeowners insurance cover damages caused by structural defects?
No. If your house been built fairly recently, then the contractor who built your house may be lible for damages. If he is a licensed contractor, then he will (should!) be bonded, which should cover the damages.
Will your homeowners policy cover damage caused by an uninsured contractor?
No, homeowners insurance does not provide coverage nor warranty for our chosen contractors quality of workmanship. That's why we always want to verify that a contractor is insured before allowing them to start work on our home. The first sign of a reputable contractor is that they carry the appropriate coverage for the work or services they offer. Never hire a an un-insured contractor.
What is contingent liability insurance?
Liability of individuals, corporations, or partnerships for accidents caused by people other than employees for whose acts or omissions the corporations or partnerships are responsible. This particular situation may arise when an independent contractor is hired. The business can be held liable for negligent acts of the contractor to the extent that its representatives give directions or exercise control over the contractor's employees.
If you hire a contractor to work on your home what insurance should the contractor have?
They should at a minimum have a commercial general liability policy for the protection of your property.The contractor should also carry the necessary medical Insurance for his workers. The home owner is "not" responsible for injury to a contractor's employees unless the home owner was somehow personally responsible for that injury. Just having hired the contractor does not create a liability for the health and safety of the contractors workers.The contractor is responsible for obtaining the appropriate protection for his workers as well as for his liabilities. Employee injury coverage is the responsibility of the contractor.AnswerThey should also definitely have Workman's Compensation insurance. If they don't and one of their employees gets injured while working on your project you could potentially get sued by the employee if the homeowner personally caused the injury. Again, make sure to see a copy of the policy.
