Contractor Policy Forms and Endorsements

 Whether you are an experienced contractor, or a new venture, you need to be aware of the different policy forms and endorsements available for your business.

 Contractual Liability

Liability imposed on an entity by the terms of a contract. As used in insurance, the term refers not to all contractually imposed liability but to the assumption of the other contracting party's liability under specified conditions.

 Action Over Coverage / 3rd Party Action Over

An “action over” (also called a “third party over action”) is a type of action in which an injured employee, after collecting workers compensation benefits from the employer, files a tort claim against a third party whose negligence allegedly caused the employee's injury.

 For an Action Over policy, this is not an endorsement that can be added to a policy. This would be a policy form type.  If you have a policy does not have Action Over on it (no exclusions for injury to employees), your policy would need to be cancelled and then issued with a carrier that provides this policy form to include this coverage.

 Primary / Non-Contributory

Primary and non-contributory endorsements or policy language make a specific insurance policy PRIMARY, meaning, to go first, and non-contributory, meaning, without contribution, over other insurance policies of a specific party; this party is typically an additional insured.

Tools and Equipment

For a standard General Liability policy, tools and equipment need to be endorsed on the policy, and in some cases, equipment coverage is not available on a policy, which means the General Liability would need to be moved to another carrier, or a separate policy issued.  Tools would cover any terms left in your work truck or on a job site should they be stolen.  Equipment would be if you have an excavator, backhoe, skid, etc.

 

 CLAIMS

It does not matter what business you have, or if you have auto and home coverage, there is always the risk of an incident or accident happening.  In the case of a contractor, it could be something as simple as a ladder falling, and breaking a glass table.  Recently, we had a contractor that was working on the second floor of an apartment on the balcony; he accidentally dropped a hammer, and hit a pedestrian walking on the sidewalk below.

 Some of the claims we’ve experienced are…

 1.    A plumber fixing or replacing pipes.  A leak happens, causing damage to the personal property of the unit owner and/or building damage.  Even if it was not the plumbers fault, the plumber is liable.

 2.    An excavator digging for any reason (pool, foundation, etc).  The excavator could have all of the permits for the job, but accidentally goes down a bit too far & hits a pipe, whether a water pipe, gas pipe, or electrical pipe.

 3.    A roofer changing a roof or doing repairs.  Things could slide off the roof, and hit a person, pet or vehicle, or ALL three.  You could be looking a large lawsuit should any of these happen.

If you would like to discuss insurance coverages, call our office at 845-627-2130.


Brian Cameron
Cameron Group, Inc
845-627-2130

 

Comments

Post a Comment

Popular posts from this blog

General Business Liability Insurance

    General Liability Insurance:                                Do Not Go Into Business Without It! If you have a business, you need general liability insurance.  Period! But how much do you understand about what that really means?  Whether this is your first go-round or you are a seasoned business professional, if you have questions...ask.  Every business is its own unique dynamic, and you want to know where the "sharks" are  before  they swim up and bite you! What Your Policy Will Cover If you are a business person, you take some risks every single day.  What you buy insurance for is to  keep  you in business despite all kinds of hazards and potential trouble. Lawsuits, Investigations, and Settlements If damages are filed against you or you're sued, general liability covers your insurance company's investigation and attorney expenses, any judgement or settlement, medical expenses in case of injury, and any bonds if they must be subsequently posted. Injury Damages If
Read more

Not All Insurance Companies Are Created Equal

 Insurance is big business -- it is getting tougher and tougher on the industry to get insurance, so they look for reasons to disqualify you, or at least to spike up your premium rates.   There is that heartless, cold bit again!  Why would they do that?     They have their reasons.     The average insurance company, to put it bluntly, has been burned before; they are like a brokenhearted lover who is afraid to trust again.  But the good news is that the responsibility you show -- the more capable you appear to be in handling your life -- the better the insurance company will "like" you.     That said, I do have a caution against putting on your rose-colored glasses too soon:  not every insurance company just wants to help people.  In fact, I would be lying if I told you that there was no such ting as a bad insurance company.     Great.  Just what you need -- to not only have insurance companies examining you  as if you are a specimen under a microscope ... but now you have to
Read more

Summer Months

Busiest Time Of The Year For Contractors   The spring, summer, and early fall months are the busiest time of the year for contractors, especially those that do most of their work outside.   Even the interior contractors tend to be busier during this time, should a homeowner decide to do an upgrade, and the contractor needs a place to store the items being removed from the home until they can be discarded.   This would be a bit difficult if there is snow on the ground.   You want to make sure you have the proper general liability coverage in place prior to starting the job.   Just because a homeowner, or business, does not ask for proof of coverage, does not mean you do not need it.   In the course of your work, you could accidentally damage something in the home or business, which could be costly to repair or replace.   Who would responsible for repairing or replacing the damaged item?   The homeowner and/or business owner would expect YOU to repair or replace the item.   If this is
Read more