The typical construction agreement requires specific types and amounts of insurance coverage. Your subcontract will designate the types of insurance required (i.e., general liability, workers’ compensation, auto, umbrella/excess, etc.) and the minimum coverage required.
However, nearly every construction subcontract will also include a risk sharing or, more accurately, a “risk shifting” provision requiring all of the parties downstream from the owner to assume the duties to defend and indemnify the upstream parties (Owner, GC or CM).
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