Engineer, foreman and worker discussing in building construction siteProject managers and construction contractors often collaborate on projects. Questions may arise on liability issues: Does the responsibility to maintain liability insurance fall on the project manager, the contractor, or both?

Who is liable when accidents happen on a construction job site? Is it the project manager or the contractor? The answer to this question depends on the circumstances of the individual construction project. The manager of the project is liable to some degree, depending on how much control he or she has over the construction job site. If the project manager is in control, he or she has an obligation to maintain safe working conditions for employees or visitors who may visit the site.

If, on the other hand, the contractor has control of the job site, he or she is responsible for any injuries that occur as a result of work accidents or those caused by hazards on the property. If a contractor has assumed site control, he or she also has the responsibility to maintain safe working conditions and prevent hazards that could cause injury to others.

What happens when the general contractor subs out work to other contractors? The liability issues can get tricky with subcontractors and primary contractors. A general contractor is generally liable for the work that is detailed in the signed contract, including the quality of the subcontractors’ work. However, subcontractors can face liability exposure depending on their contract terms with the prime contractor. In some cases, the wording of the contract passes the liability obligations on to the subcontractor.

The responsibility to maintain liability insurance typically falls on both parties, with each having distinct coverage for their respective roles. Project managers may carry liability insurance to protect themselves from claims arising from decisions they make, project coordination, and overall management. On the other hand, construction contractors should also maintain their own liability insurance to cover potential damages or accidents caused by their on-site activities, equipment, and workforce. Having separate insurance coverage for both the project manager and contractor helps mitigate risks and ensures a more comprehensive approach to liability management throughout the project’s lifecycle.

For your construction contractor clients, C&S Specialty Underwriters offers a complete liability insurance package to make sure they are protected. Give us a call at 855-390-7598 to discuss your clients’ liability insurance options.