What is a necessary action the contractor must take with insurance related to subcontractors?

The necessary action the contractor must take regarding insurance related to subcontractors is to require them to name the City as an additional insured. This step is crucial because it ensures that the City is protected under the subcontractor's insurance policy in case of any claims or incidents related to the work being performed.

When subcontractors name the City as an additional insured, it broadens the policy's coverage to include the City, thereby safeguarding it from potential lawsuits or liabilities that might arise from the subcontractor's activities. This not only complies with legal and contractual obligations but also enhances the overall risk management strategy for the project, ensuring that all parties involved have a level of protection against unforeseen events.

In contrast, ignoring insurance requirements would leave potential gaps in coverage. Transferring insurance obligations to the City is not a typical practice as it shifts liability onto the City rather than maintaining proper coverage among contractors and subcontractors. Allowing subcontractors to choose any type of coverage might not meet the standards required by the City or the specific terms of the contractor agreement, potentially leaving the City without adequate protection.