It is a very common thing to delegate the work to accelerate any task that needs to be completed within a certain timeframe, that may happen anywhere from making reports to constructing high rising buildings. Commercial contractors are the ones who are termed as the main contractors and they only hire subcontractors and assign work to them in order to delegate the task or simply ask them to do it on their behalf. Sub-contractors are hired by the general commercial contractors so that they could focus on many other complex tasks rather than prioritizing smaller tasks. To be correct with the fact, sub-contractors are a bit less trained and have less control over the skills, and are thus considered to be a step below the general contractors. Moving on, there are basically three categories of sub-contractors, one, domestic sub-contractors; two, named sub-contractors, and third, nominated sub-contractors. The work of a subcontractor is totally done under the directions and responsibility of the main contractor or the general commercial contractors as far as the contract between the client and the main contractors are bound. 

When the main contractor is purchasing the general contractor’s liability insurance, then there are certain main things that they have to keep in mind. The first and foremost is that they have to maintain and retain some legal and important documents between them and the sub-contractors while the send them off to work on the construction sites. After purchasing the commercial construction contractor insurance they simply agree to transfer risk from the general contractors or the company to the insurance company in return for paying the insurance money and some regular premiums for sustaining the risk. All these are conditioned over a contractual deal. Some of the insured endorsements in the policy gives the chance to transfer the risk of commercial construction contractors being sued to the sub-contractor they are hiring. The insurance is generally heavy under the name of a working contractor and not a paper contractor.  Paper contractors manage the projects and don’t do any physical work, charging fees to clients and hire subcontractors to do the task. 

On the other hand, a working contractor does the on-site or physical work and hires subcontractors to do less than 50 % of the total work. Commercial contractors hire a bit less qualified subcontractors to do work on their behalf, with this the advantage they get is that it is cost-effective, provides productivity to the tasks, you don’t have to commit for a longer duration of time, fewer legal obligations, and so on. Although, general commercial construction contractors purchase insurance to get security from sub-contractors suing them. The additional insured conditions in policy save costs to the company upon a judgment against some legal actions.