If a contractor has a Commercial General Liability policy with a $1,000 deductible and faces $2,000 in code violations, who is liable for the costs?

The contractor is liable for the costs associated with the code violations in this situation. A Commercial General Liability (CGL) policy typically covers claims for damages and liabilities that arise during the course of a construction project, as long as those claims fall within the stipulations of the policy.

In this case, the contractor holds the policy, and while there is a deductible of $1,000, the coverage should apply to the $2,000 in code violations. The contractor would first be responsible for covering the deductible, which means they would pay the initial $1,000 out of pocket. The insurance would then cover the remaining $1,000, assuming that the code violations are covered under the terms of the policy.

The other parties mentioned, such as the property owner, subcontractor, and building official, typically do not bear the responsibility for this type of liability unless specific conditions or agreements are in place that assign such liability to them. In standard scenarios, the contractor is the principal party responsible for ensuring compliance with building codes and regulations during their work, which includes handling the costs associated with any violations.