Prime contractors should verify that their subcontractors have secured their own insurance for general liability and workers compensation. True or False?

Prime contractors are responsible for ensuring that their subcontractors carry adequate insurance coverage, including general liability and workers' compensation. This verification is important for several reasons. First, it protects the prime contractor from potential claims related to the subcontractor's work. If the subcontractor is not properly insured and an incident occurs, the prime contractor could be held liable for damages or injuries, leading to significant financial exposure.

Additionally, ensuring that subcontractors have their own insurance promotes a safer working environment and compliance with applicable laws and regulations. Workers' compensation insurance is particularly crucial as it provides coverage for employees injured on the job, thus reducing the likelihood of legal disputes and financial liability for the prime contractor.

By confirming that subcontractors maintain their insurance policies, prime contractors help safeguard their projects, shield themselves from unforeseen liabilities, and maintain overall project integrity. This due diligence is a critical aspect of risk management in the construction and contracting industries.