Michigan Residential Builders License Practice Test

Who is responsible for requesting copies of all required insurance policies from subcontractors?

1. The project manager

2. The general contractor

3. The client

4. The insurance agent

The correct answer is: The general contractor

The general contractor holds the responsibility for requesting copies of all required insurance policies from subcontractors. This obligation is crucial as the general contractor is typically the primary entity that manages the overall project and ensures compliance with various regulations and requirements, including insurance. Ensuring that subcontractors have the necessary insurance helps protect the project from potential risks related to liability, workman's compensation, property damage, and other liabilities that might arise during construction. By obtaining proof of insurance, the general contractor mitigates risks and can verify that all parties involved are adequately covered, which is essential for the smooth operation and financial security of the project. This practice also fosters accountability and professionalism within the contracting process.