What should prime contractors verify about their subcontractors concerning insurance?

Prime contractors should verify that their subcontractors have secured their own general liability and workers' compensation insurance because this is crucial for risk management and liability protection in construction projects. Ensuring that subcontractors have valid insurance is necessary to protect against potential claims that could arise from accidents, injuries, or property damage that may occur during the course of work.

If a subcontractor lacks adequate insurance, the prime contractor could be held liable for damages or injuries, which could result in significant financial repercussions. By requiring proof of insurance, prime contractors not only protect their own interests but also help foster a safer working environment and ensure compliance with contractual obligations.

The other options, while potentially important aspects of subcontractor management, do not directly address the critical issue of liability coverage. Equipment sufficiency, employee numbers, and financial stability are relevant considerations but do not provide the same level of direct protection against risks associated with construction-related claims.