Who is liable when a subcontractor damages the home?

Work it through

You're the contractor. Pick what you'd do, then see how each choice plays out.

1. ATake responsibility as the prime contractor. File a claim on your liability insurance. The homeowner's contract is with YOU, not the plumber. You can pursue the plumber's insurance separately for reimbursement
   Correct

   Under COMAR 09.08.01.08, the prime contractor is responsible for all work performed on a home improvement contract, including subcontractor work. The homeowner didn't hire the plumber — you did. Your $50,000 liability insurance covers this situation. File the claim, manage the remediation, and pursue the plumber's insurance for contribution. This is exactly why liability insurance is mandatory for MHIC licensees.

2. BTell the homeowner to file a claim against the plumber's insurance — it was his mistake
   Wrong

   The homeowner has no contractual relationship with your plumber. Their contract is with YOU. Deflecting responsibility to a subcontractor the homeowner didn't choose violates your duty as prime contractor under COMAR 09.08.01.08. The homeowner may not even know who the plumber is or how to reach their insurance. Handle it. That's your job.