Generally speaking, it is quite tough for general contractors to work without any sort of general insurance. With the help of general contractor liability insurance, owners and operators of firms can get a protection from claims that may come from a wide array of sources.
The cost of general contractor liability insurance depends on the liabilities you have opted for. Quite identical to car insurance, you need to make a down payment first in general contractor liability insurance. After that you need to pay installments. Take quotes from at least ten insurance companies before buying general contractor liability insurance. When you do this, you increase your chances of getting insurance at easy terms and conditions. It’s the responsibility of general contractor to ensure that the individuals working under him are covered by general contractor liability insurance. For example, if an individual, who is not working in the project, gets injured, the lawyer of that particular person can target everyone that is participating in the project in court. It is worth mentioning in this regard that when more people are involved, the possibility of a successful lawsuit increases.
Despite that, it is recommended that you buy general contractor liability insurance for subcontractors. This is because of the fact that even if there is no mistake on your part, subcontractors always have a choice of filing lawsuit against you. In case if subcontractor manage to hire a good experienced lawyer, your problem can increase further because he can come up with an argument that can prove the innocence of subcontractor in the court. Taking this into account, one can safely say that liability insurance is an absolute must for everyone that is participating in the project as a team.
As a general contractor you need to ensure that all your subcontractors are equipped with general liability insurance. If your subcontractors possess the required insurance, the insurance rate and liability exposure will drop significantly. Point to be noted here is that the subcontractor is not classified as an employee. In other words, subcontractor is treated as an independent worker. Therefore, as a contractor you are not liable for the errors committed by subcontractor.
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