Jam is correct about builders risk.
The only time GC have builder's risk policies are on their own personal projects / properties....such as spec building.
Make sure you have a contract that states that the GC provide General Liablility as well as having Workers Comp or that his subs have their own policies
Basically either the subcontractor has it or the GC must have it.
You do not need a GL policy.
Ask your GC to provide you with a flow (progress) schedule. This is beneficial to all parties.......especially if certain materials need to be special ordered.
General Liability is designed to protect owners and operators of businesses from liability exposures.
These exposures could include but not limitied to liabilities arising out of accidents, products sold by the insured, operations completed by the insured, and contractual liability.
You as the owner do not need it unless you are doing the work yourself to the point that such work could result in significant liability exposure itself.
For instance, you decide to do your own plumbing............6 months down the road, you sold the property and there happens to be a serious leak in which your workmanship caused the problems. In such a case you would be liable for the damages.
While the homeowner may file it under their own insurance, in all liklihood the homeowner's insurance company will be coming after you.
Make sure he has the following:
Builders Risk
General Liabilty
Workers Compensation
It wouldn't hurt if they had a commercial umbrella policy as well.
The lender will require the owner to have builder's risk, the contractor is responsible for General Liability.
Hi Shanund,
Jam is correct about builders risk.
The only time GC have builder's risk policies are on their own personal projects / properties....such as spec building.
Make sure you have a contract that states that the GC provide General Liablility as well as having Workers Comp or that his subs have their own policies
Basically either the subcontractor has it or the GC must have it.
You do not need a GL policy.
Ask your GC to provide you with a flow (progress) schedule. This is beneficial to all parties.......especially if certain materials need to be special ordered.
Hope it works out.
NC_Yank
What if a GC wasn't completing the rehab, wouldn't it still be unnecessary for me to car gen liability if my subs have their own policy??
General Liability is designed to protect owners and operators of businesses from liability exposures.
These exposures could include but not limitied to liabilities arising out of accidents, products sold by the insured, operations completed by the insured, and contractual liability.
You as the owner do not need it unless you are doing the work yourself to the point that such work could result in significant liability exposure itself.
For instance, you decide to do your own plumbing............6 months down the road, you sold the property and there happens to be a serious leak in which your workmanship caused the problems. In such a case you would be liable for the damages.
While the homeowner may file it under their own insurance, in all liklihood the homeowner's insurance company will be coming after you.
Hope this helps.
NC_Yank
So the general liability is still in effect even after I have sold the property?? If so, for how long will that coverage be provided??
Thanks NC