Who is responsible for insuring a development project?
I am sure you have heard the saying you can never have enough insurance. This is especially true in the construction industry, which is the most dangerous job anyone can have. It is not uncommon for the bank to insure the project along with the developer and the GC. In fact, the bank will not fund the project without insurance bonds that can cost in the hundreds of thousands of dollars. The GC is also required to post a bond on development projects. Due to the high health risk involved on construction sites, the bond rules are strictly enforced and the fines are extremely harsh. This is another reason why the GC is in charge, as he or she is usually the one hit with the fines.
