Select Page

Owners and general contractors (the upper level) have a position with a certain degree of control and responsibility in the actions of lower-level contractors. This control makes them vulnerable to the fact that they are held accountable on behalf of subordinates` actions. Each State allows the surrender of the liability of an auxiliary to the indebted contractor at the lower level (known as a limited assignment). The transfer of contractual risk through the use of indemnification formulas (so-called “indemnification agreements”) requires the lower level to “compensate and unhar” the higher level of higher level legal liability resulting from an act or inaction of the lower level contractor. Legal liability is the liability imposed by the courts by customary law or the law of a natural or legal person responsible for the financial damage suffered by another person, group or organization. As a contractor for a construction project, you face significant risks, especially with any subcontractor you order. You may be held liable for damage or injury caused by work performed by subcontractors on your behalf – this may be an injured employee of a subcontractor or even injuries to visitors on site. To reduce your exposure to losses and protect your business, it is important to implement risk transfer strategies. With regard to cooperation with a subcontractor, it is important to ☐ A requirement for the subcontractor to comply with the appropriate general limits of liability of the insurance, such as: for example, if a contractor requires its subcontractor to designate the contractor and the owner as an additional insured in its CGL policy, an IOC may list the contractor and the owner as an additional insured. However, if the actual additional confirmation, which accompanies the subcontractor`s policy, requires a contractual right with an additional insured, the owner would not be an additional insured, regardless of the IOC`s declaration. .

. .