Whether residential or commercial, nearly every construction project today requires the use of subcontractors. While contractors often devote a good deal of effort and attention to their prime contracts with a project owner, subcontracts can be an afterthought. This can be a problem when it comes to insurance requirements. Too often, contractors rely on poorly worded or outdated forms or templates that do not align with the insurance requirements of their prime contracts. When things do not go smoothly on the construction site, this can lead to large claims with limited or no insurance coverage. With a better understanding of the insurance provisions of their subcontracts, contractors can better manage risk and prevent possible issues before losses occur.
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Reprinted with permission from Risk Management Magazine.
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