With respect to the following scenario, what different types of insurance would be involved in the incident:
A general contractor’s worker was drilling holes on the third floor of the project. The vibration of the saw caused a board to work its way to the edge of the building and fall off. The board struck a mason who was working on the next floor down. The injured worker fell against a stack of loose bricks. These bricks then fell from the scaffolding, breaking a plate glass window on the first floor and striking a car that was parked on the public street below.
What would the insurance cover? Who would buy it? Etc.
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One type of insurance needed for such an incident as described above would be liability insurance. Liability insurance protects contractors and other construction workers in the event they are injured or accidentally damage property while working on a job due to faulty usage of tools and materials. In the event of injury or property damage, such as the injury sustained by the mason worker and the damage to both the window and the car, individuals may want to sue the contractor and subcontractor. Having liability insurance protects contractors from being legally responsible. However, it should also be noted that there are set limitations to liability insurance. In the case described above, any medical expenses for injuries not covered by workers' compensation may actually also not be covered by liability insurance ("Liability Insurance").
One would also want professional liability insurance to cover any of the client's financial losses due to errors made while on the job. Such insurance will also often cover any litigation costs, should the company be sued. The difference between general liability insurance and professional liability insurance is that the former only covers property damages and injuries, while the later covers professional service errors ("What is Professional Liablity Insurance, or Errors & Omissions Insurance?").
Since a mason was injured due to an accident caused by a general contractor's worker, it is most likely that the general contractor also hired a subcontractor to perform the specialized mason work ("Subcontractor"). In that event, the subcontractor would have also wanted to present the general contractor with a hold harmless agreement. Such agreement eliminates the risk of the general contractor being sued by the subcontractor should any of the subcontractor workers be injured, like the mason (Encyclopedia of American Law, 2nd ed., "Hold Harmless Agreement"). The most common type of hold harmless agreement is the intermediate form. Under this agreement, the subcontractor assumes legal responsibility for all accidents and negligence caused by the subcontractor. Such an agreement will ensure that the subcontractor is legally responsible for the damage caused to the car due to the loose bricks falling from the scaffolding ("Hold Harmless Provisions").
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