Most often fuel leaking out the carb is caused by a needle and seat problem in the carburetor / the float level shaft screw may have come loose due to the vibration of the engine ,this will cause a leak issue with the needle and seat as well. To complete the repair the carb will have to be removed and cleaned. Replace the needle and seat if necessary an then replace the carb.
How old it thei generator? is it a Briggs enging, make sure it is the carb the fuel is comming from there is also a fuel pump o that enging, you may need a nes shut off valve check with eReplacementParts.com I had the smae problem with mine
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