Posted: Thu Sep 20, 2007 9:30 pm Post subject: A question about liabilty insurance regarding subcontractors
Does general liability insurance have to be paid on subcontractors in addition to payroll? _________________ Register Now to have your Insurance queries solved.
In most states the contractors are required to obtain the certificate of ‘general liability insurance' before commencing the construction work. This policy protects both the ‘public' and the ‘product' from damages due to human error, acts of god and so forth. The contractor's ‘General Liability Insurance' typically covers the following:
Raw materials
Constructional ground/site of operation
Any underground operation, explosion and use of inflammable materials and any accident caused by these materials.
Finished products
Independent contractors or subcontractors
The workers (also workers under the subcontractor)
Bodily injury, loss of life or limbs and loss of wage
Any damage to the constructed structure.
The states minimum requirement for ‘general liability policy' varies widely. Therefore, it is important that you acquaint yourself with state requirements. However, the minimum coverage level may vary between $2, 00,000 and $5, 00,000.
Posted: Fri Sep 21, 2007 7:32 am Post subject: it's mandatory on your part.....
Good morning ghurty, if I'm getting you right you want to know that whether it is mandatory for you to take out the policy on the subcontractor's name or not. Well no, you can request the subcontractor to purchase a separate ‘general liability policy' of his own. Even the sole contractor can also do the same with his employees. It will certainly cut down the cost of insurance on your part. But, at the same time, you have to make sure that the subcontractor is abiding by the state requirements and obtaining at least the minimum coverage level. And also no employees are remaining un-covered.
Moreover, if required you also need to take out ‘excess general liability coverage' over and above the state minimum requirement to ensure full protection and also to avoid any delay in commencing the work.
Normally the subcontractors work independently. Therefore, you can ask them to have their own insurance. And your premium will be calculated on your employee's payroll. But, if the sub-contractor doesn't carry enough liability insurance then the cost will fall on you. That will increase your expenses significantly.
Jeremy _________________ Register Now to have your Insurance queries solved.
Posted: Fri Sep 28, 2007 2:20 pm Post subject: general liability insurance
Hi I saw this and thought I would give you some input. I have worked for a Construction Company for the last 10 years. If your sub-contractors don't have general liability insurance you will get charged when you have your audit. In our case we had an employee who had an accident which left him paralyzed so our mode rate went very high. When charged on sub-contractors that don't have insurance you are charged on your mode rate and if it is high the extra cost well be very expensive.
Posted: Thu Sep 11, 2008 3:17 pm Post subject: General Liability Insurance on Subcontractors
In the state of South Carolina, if I subcontractors does not have General Liability Insurance is it legal to withhold a percentage from his check to cover the expense when I am audited? How much would you hold out on a roofer? painter? etc? _________________ Register Now to have your Insurance queries solved.
