Why Do Contractors Have to Provide Additional Insured Endorsements?

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A common requirement you’ll find in a construction contract is for any hired contractor to provide additional insured status to parties within the contract. The purpose of this requirement is to protect an Owner, General Contractor and/or another Trade Contractor from potential claims that may arise from work the hired contractor is performing. By having the Owner and General Contractor listed as additional insureds on the hired contractor’s policy, this transfers the potential risk for work done back to the hired contractor.

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Topics: Contractors, commercial insurance

Risks Associated With Contracted Sole Proprietors

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Owners, General Contractors, Developers, and even Trade Contractors take on a certain amount of risk when hiring any contractor, regardless of the business type. These risks typically include Liability Risk, Work Quality or Completion, Contractor Default, Bankruptcy, Insolvency and even the ceasing of operations. These are only a few that must be considered when hiring a contractor.

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Topics: Risk, construction contract, Sole Proprietor, Contractors

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