Uninsured Prime?

mikezap

I have a guy who wants to sub me out on his remodel. He claims he doesn't run liability insurance. He also claims I wont need it either. This is the first time I've run across this. Should I re-up my policy? How does he do it? Is there a release of liability form I could have him sign? I've never had a job I didn't have insurance for, so I'm completly stumped.

Mike

JohnJ0906

He's crazy. Run.

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John from Baltimore
"One Day at a Time"
All replies based on the 2008 NEC

Chris Johnson

Check and see if there is a 'Wrap' policy in place, this is what I am used to seeing on multifamily projects.

Wrap basically insures all people and companies working on the project for liability...if so, now check with your current provider...some (such as mine and about 75% of other contractors in my state) are not allowing you to work on such projects. It will be a clause in your policy, even though your insurance co. is not liable people try anything when the cards are down.

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Chris

d-rez

I don't understand. You are a GC but another GC who will act as Prime wants to hire you as a sub? You already have GLI, right? So you and your company are covered. If so, have him sign a waiver for all others, including himself. No?

mikezap

d-rez, your right on all points. I was just wondering how he contracts w/o insurance. Wouldn't a HO be nuts to sign a contract with a uninsured contractor? I've never seen or heard of this before. Does anyone know of contractors who do this? I couldn't get a straight answer out him other than " I have total control over my projects. Never had an accident." Just wondering if anyone experienced this before.

RobertCDF

I have seen it... ususally done by hacks and jacklegs. Turn him into your local building department. Those kind of people give us a bad name.

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Robert Shaw
Colorado Springs Custom Decks
Colorado Custom Decks
Custom Composite Decks

d-rez

This is such a stupid statement! Might as well say 'My office is neat. Never had an audit.' Okay... true, but it WILL happen. Just make sure he cannot use your insurance in case of an accident. You say you couldn't get a straight answer out of him- well maybe HOs do ask himabout his insurance and he does the same thing, just side steps the question. The other day I was talking with a potential sub for an upcoming job and asked if he has insurance. He went on and on how he is this and that and his company is registered here and there, noticing he never answered the question but threw out a lot of other info I think to side track me. I let him finish, and then asked him again. I don't have to tell you what the answer was!

Brock

600,000.00 liability insurance is $350.00 annually. Why wouldn't you want to protect yourself from accidents and represent yourself as a solid business man to your perspective clientel for $350.00?

I only used my policy once. I did my wife a favor and hired her friend's teen age son for the summer. He kicked over a quart of stain on the carpet. I was glad I had the ins.