Contractors--Subcontracted Work--In Connection with Building Construction--One- or Two-Family Dwellings

What Does GL Code 91583 Cover?

ISO GL class code 91583 specifically covers general contractors who subcontract residential construction, reconstruction, repair, or erection work for one- or two-family dwellings. This code classifies the operations of businesses that manage and oversee residential projects but rely on other contractors to perform the actual physical labor, focusing on the administrative and supervisory aspects of the construction process. It addresses the general liability exposures arising from the overall project management and the work performed by their subcontractors.

Who Uses This Class Code?

This code is primarily used by residential general contractors, home builders, and remodeling companies that frequently subcontract specialized trades like plumbing, electrical, roofing, or framing for single-family homes or duplexes. Businesses that act as project managers for residential construction without directly employing the labor for physical construction tasks would fall under this classification.

Common GL Claims for This Class

Common claims for this business type include property damage caused by a subcontractor's faulty workmanship, bodily injury to a third party on a job site due to a subcontractor's negligence, or claims arising from structural defects in a completed home where the general contractor is held responsible for the subcontractor's errors.

Coverage Tips for Code 91583

• Always ensure written contracts with subcontractors include clear indemnification clauses and require them to carry their own General Liability insurance, naming your business as an additional insured.
• Collect and verify current Certificates of Insurance from all subcontractors before they begin work, ensuring adequate coverage limits and proper additional insured endorsements.
• Maintain meticulous records of all payments made to subcontractors versus direct payroll to accurately report gross receipts to your insurer, avoiding potential audit discrepancies and increased premiums.
• Confirm your policy includes robust completed operations coverage, as many claims related to subcontracted residential work may arise after the project is finished and accepted by the homeowner.