0
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.
What else can I help you with?
Why do you have to pay general liability insurance on your subcontractors when they have to provide you with general liability in Arizona?
In Arizona, even if subcontractors provide their own general liability insurance, it's often required for the primary contractor to maintain their own policy to cover any additional risks or liabilities that may arise during a project. This dual coverage helps protect against gaps in the subcontractor's insurance, ensuring that the primary contractor is safeguarded from potential claims. Furthermore, having your own liability insurance can also fulfill contractual obligations and provide broader protection for your business. Ultimately, it's a prudent risk management strategy.
What are the insurance requirements for subcontractors working on this project?
Subcontractors working on this project are required to have liability insurance and workers' compensation insurance.
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.
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 the roles and responsibilities of a sub 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 the disadvantages of subcontracting?
Subcontracting can lead to reduced control over the quality of work, as the primary contractor may have limited oversight of subcontractors' practices. It can also result in communication challenges and misalignment of goals, potentially affecting project timelines and outcomes. Additionally, relying on subcontractors can create dependency and increase overall costs if not managed effectively. Lastly, there may be legal and liability concerns if subcontractors fail to meet contractual obligations.
What is sub contractor ledger?
A subcontractor ledger is a financial record that tracks all transactions related to subcontractors engaged by a primary contractor. It includes details such as payments made to subcontractors, invoices received, and outstanding balances. This ledger helps in managing subcontractor payments, ensuring accurate financial reporting, and maintaining compliance with contractual obligations. It serves as an essential tool for project accounting in construction and other industries that rely on subcontracted services.
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 can a homeowner make sure a roofing contractor pays the subcontractors so that there is no lien placed on the home?
This is very simple. All you need to do is make all checks for payment to the roofing contractor payable to BOTH the roofing contractor as well as any subcontractors or suppliers working on your home. That way, the subcontractors are paid. Another, more complicated method is to have all subcontractors sign lien releases. Lien release forms are available in "Do-it-yourself" forms packages in office supply stores or online. A more accurate, state specific form can be obtained from a real estate attorney in your area.
What are the key considerations for subcontractors when it comes to workers' comp coverage?
Subcontractors should ensure they have their own workers' compensation coverage to protect their employees in case of injury or illness on the job. They should also verify that the general contractor has proper coverage and understand their responsibilities in case of a claim. It is important for subcontractors to comply with all legal requirements and have clear contracts outlining insurance responsibilities.
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.
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.
