Conquer the CAS Challenge 2025 – Your Ultimate Actuarial Adventure Awaits!

Employing a subcontractor introduces additional hazards for a general contractor primarily because of the potential for vicarious liability. When a general contractor hires a subcontractor, they can still be held legally responsible for any negligence or wrongdoing that occurs during the subcontractor's work. This means that if a subcontractor causes an accident or injury while performing tasks on behalf of the general contractor, the general contractor can be sued for damages, irrespective of their own level of fault.

This legal concept underscores the importance of ensuring that subcontractors are not only skilled and qualified but also adequately insured and capable of adhering to safety standards. The general contractor's exposure to liability can affect their risk management strategies, insurance premiums, and overall business operations. Thus, the potential for vicarious liability makes it essential for general contractors to carefully select subcontractors, as any failures on their part can directly impact the general contractor's legal and financial standing.