Insurance General Contractors - using subs that are insured!

When you bid on a job, did you do your homework as a GC and find out what your subs are insured for or simply calculate job cost estimation? Your underlying general liability coverage commonly requires your subs to meet your coverage limits and when audited, you will be asked to provide proof or face additional premiums to cover subs, could be expensive, but not as expensive as defending any claims and settlements on claims. Tough times push GC's to cut bids and that could mean using no insured or under-insured contractors. Many states will name you as the Work Comp carrier in plain English if your subs have no work comp, that's all legal, all wages,all medical and all third party claims, you could pay not your work comp carrier.  Be sure and acquire subs proof of coverage and verify with their insurance company policy is active, consider an all inclusive per project policy!

Business is a marathon not a sprint don't ruin your reputation!