Under normal circumstance, it is hard for general contractors to find work without any general insurance. Contractors general liability insurance is a type of insurance for general contractors and is a means of safeguarding contractors and company owners from claims brought about by different occurring eventualities that may occur within the contract period. Exposure to such eventualities can lead to costly financial damages for them. The problem though is that these exposures can vary greatly, thus making their liability more difficult to anticipate. Nevertheless, all of these come as a result of negligence which leads to accidents.
Depending on the sector you are in, the liability you may have will vary. This means that the premium and coverage you will be getting will also vary. The amount of coverage you get will depend on the risks you are exposed to. Of course, these risks also determine the price of the premium. The higher your risk, the higher the premium you need to pay for your insurance. Eventually, you will need to buy contractors insurance if you want to protect your financial interest. If you do not have general liability insurance, you will need to pay for all the settlements and compensations yourself.
It is the job of the general contractor to make sure that all those who work for him, particularly the subcontractors are properly insured with general liability insurance. Even though he himself is equipped with one, the liability exposure is none the more prevalent when you have other people working for you. For this reason, it is ideal that they are also equipped with general liability insurance as a means of protecting themselves, but also you as the general contractor.
Since subcontractors are not your employee, it means that you are not liable for the mistake that they do. If their worker is found of negligence, then they should take responsibility for it. Even so, a charismatic lawyer of an aggrieved party can find ways into changing the tides of a case. Charges can be filed not just against the subcontractor, but also on you as the general contractor. Even if the case has no merit against you, it still proves that having liability insurance for every one that works for you becomes crucial. Even if this insurance proves to be costly on your part, you will never know when it becomes useful and saves you from a lot more financial expenses than you would expect when you do not have it.
