Contractors--Subcontracted Work--In Connection with Construction, Reconstruction, Repair or Erection of Buildings

What Does GL Code 91585 Cover?

ISO GL class code 91585 applies to contractors who primarily engage in subcontracted work related to the construction, reconstruction, repair, or erection of buildings. This code specifically classifies operations where a general contractor or construction manager subcontracts out the majority of the physical labor, but retains overall project responsibility and oversight. It covers the general liability exposure arising from managing and coordinating these subcontracted building-related projects.

Who Uses This Class Code?

This code is typically used by general contractors, construction managers, and project management firms that oversee building projects but delegate the actual construction tasks to various subcontractors. Businesses that act as prime contractors for residential or commercial building projects, utilizing a network of specialized trades, would fall under this classification.

Common GL Claims for This Class

Common claims for this class include property damage caused by a subcontractor's faulty workmanship, bodily injury to third parties at a job site due to subcontractor negligence, and claims arising from completed operations where a defect in subcontracted work leads to damage or injury after the project is handed over.

Coverage Tips for Code 91585

• Always require all subcontractors to carry their own General Liability insurance with adequate limits and name your company as an Additional Insured on their policies to ensure coverage extends to you for their negligence.
• Implement robust written contracts with all subcontractors that clearly define scopes of work, indemnification clauses, and insurance requirements to transfer risk appropriately.
• Recognize that claims can arise long after a project is finished; ensure your policy includes strong completed operations coverage, as this is a significant exposure for subcontracted work.
• Be prepared for annual premium audits by maintaining meticulous records of all subcontractor payments and certificates of insurance, as premium basis is often gross receipts less payments to insured subcontractors.