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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.
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What insurance obligations contractor have if subcontractor has no insurance and caused the loss?
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.
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 are the roles and responsibilities of a main contractor?
The roles and responsibilities of a main contractor is to ensure that the project is completed successfully. The main contractor will find subcontractors for the different assignments in the project.
What are roles and responsibility of the main contractor?
The roles and responsibilities of a main contractor is to ensure that the project is completed successfully. The main contractor will find subcontractors for the different assignments in the project.
Is a company required to carry workman's compensation insurance on subcontractors?
A company is required to carry workman's compensation insurance on subcontractors. This is regardless of the number of employees a subcontractor employs.
Is a person a subcontractor if the general contractor makes the price?
Anyone who does work for a general contractor and is not a direct employee of that contractor is a sub-contractor. Regardless of who sets the price. The subcontractors work within the contract set between the general contractor and homeowner. Hence sub-contractor.
Does a contractor need to be on the subcontractors policy as additional insured?
This is not as simple a question as it may seem. Subcontractors generally carry their own liability insurance. The General Contractor should verify that the sub contractors insurance either matches or exceeds their own policy limits as this is part of the contract terms for almost every general liability policy. In effect if you let an uninsured subcontractor work on your job, unless you endorse your own policy to cover the subcontractor and pay the additional premium, their would be no coverage under the General Contractors insurance policy for liabilities of the Subcontractor. Basically if you get this wrong, the General contractor will be on the hook and out of pocket for all the subs damages with no coverage for it. If you want the subcontractors covered under the General Contractors insurance policy it can certainly be done but will be significantly more expensive as you would be asking to insure a third party''s work.
How is general liability insurance calculated for a general contractor in NY?
Well it depends on the company providing the policy. Most will calculate the premium based on your direct payroll and they could also add in payroll for your subcontractors. If you don't want to pick up the premium charge for your subcontractors you will have to show the insurance company that the subs carry their own liability insurance policy. Hope this helps. By the way NY is a difficult state to even find reasonable liability insurance for general contractors.
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.
How much is contractor's liability insurance in Texas?
There is no simple answer to the question. Every contractor has his or her own risks associated with the type and volume of work performed. It could easily be anywhere from 500 to 50,000 dollars or more depending on the risks presented.
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.
