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A contractor and his subcontractor are working the same job and the sub damages the contractors equipment whos insurance pays?
Wiki User
∙ 14y ago
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).
Wiki User
∙ 14y ago
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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 General contractor liability insurance cover default of payment to subcontractor?
no
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.
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.
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.
Where can you purchase contractor insurance?
Contractor insurance can be purchased through the Aegis, Nationwide and Progressive insurance companies. Also, both the Contractors Insurance business and organization sites offer aid on the subject.
What is the typical cost for workman's comp insurance for a subcontractor (drywall)?
Information about home building and sub contractor insurance can be found here http://www.byoh.com/subcontractorinsurance.htm
What exaclty is contractor insurance?
Contractor insurance is when contractors get injured or hurt during work. The insurance is supposed to cover or partially cover their medical bill for the hospital. http://www.ehow.com/info_7924969_contractor-insurance.html
Can you hold back money if a subcontractor doesnt have insurance?
If the contractor has already finished the work you can not legally hold back his money. What on earth would you be holding it for anyway? Most states in the U.S do not require a contractor to be insured so you would have no legal grounds and are subject to suit by the contractor. If your upset that he didn't have insurance, You were supposed to check that before you hired the contractor in the first place. Holding the contractors money after the job is completed just looks like your trying to cheat the contractor out of his pay. If the contractor wants to, he can sue you and or place a lien on your house if you fail to pay.
Can a contractor force their subcontractor to raise their car insurance premium?
I think you mean can a general contracto force their subcontractor to raise their car insurance coverage limits. Some people choose to buy insurance with very low limits which do not provide a lot of protection. If you work for someone like a general contractor they can require you have a certain level of insurance. The reason they might do this is because they may have insurance that starts at a certain dollar limit. For example You buy insurance which covers damage cause if you car hits someone up to $25,000. The contractor may have insurance that starts at $50,000. This means that you would need insurance that covers up to $50,000 and the the contractors insurance would start paying after $50,000. Premium is the money you pay to purchase a policy. If you increase your coverage limits from say $25,000 to $50,000 it will of course increase your premium cost.
Which insurance carrier pays on Florida condo negligence of contractor claim?
The contractors General Liability Insurance would cover accidents and quality of workmanship issues that result from the activity of the Contractor.
Subcontractor Agreement?
Get StartedA Subcontractor Agreement is an agreement between a general contractor (the "General Contractor") and another party who has subcontracted to perform work and services for the General Contractor (the "Subcontractor"). The General Contractor is the party who will contract directly with the owner of the property on which the Subcontractor will be working. Frequently, the General Contractor has portions of the larger project that the General Contractor prefers not to do. Therefore, the General Contractor contracts those portions out to another party, the Subcontractor.If it is available, the Subcontractor may wish to review the Original Contract between the Owner and the General Contractor to be sure that there are no conflicting terms between it and the anticipated Subcontractor Agreement.This agreement allows the parties to describe which services and materials the Subcontractor will provide, specify the price for the work, and assign various rights and liabilities between the parties. Important provisions regarding indemnification, insurance, change orders, unforeseen conditions, defaults, the nature of the parties' relationship and miscellaneous concerns are also included.This agreement should be signed by both parties and becomes effective as of the date inserted at the beginning of the agreement.
