I have been meaning to post this earlier because of the frequency of questions we are getting lately on working for HOAs (a RED FLAG). While most general liability policies have no issue with you working for a unit owner, doing service and repair for the association is another story entirely and most carriers exclude this type of work.
The carriers that have no exclusions for HOA service and repair are few and far between. Lately we have seen carriers that let you schedule on an association to un-exclude for the particular work you are doing. But, the problem here is you had better make sure you can schedule on that particular job well into the future with all future carriers. Scheduling on the prior HOA service and repair jobs you have done in the past is questionable. Carriers may not do this in the future, or you may not remember to schedule on a go forward basis and you could be stuck going to a much higher priced general liability carrier. And this is what I mean by married to your work.
Assume nothing happens on the association job you are doing, no premises claim, no one slipped or you did not do any property damage. You still have potential defect claims into the future possible up to 10 years and a possible bodily injury claim even beyond that.
So, choose your jobs carefully because it is almost impossible to divorce yourself of your prior work.
And to be clear no General Liability policy allows or new condo construction and condo conversions.
Wednesday, June 8, 2011
Friday, May 27, 2011
Pollution-it's excluded!!
Contractors you can buy pollution coverage. It is not that expensive. We have basic policies available for reasonable premiums.
what is a claim?
What Is A Pollutant - And Who Pollutes???
Technical definitions aside, from a practical standpoint, almost anything that has to be cleaned up - whether it is from a building, land, air or water - may be a pollutant.
• Clean dirt that is washed off of a job site and into a salmon stream may be a pollutant.
• Bags of concrete spilled into a creek in an auto accident, may be a pollutant.
• With inadequate ventilation, paint fumes may be a pollutant.
what is a claim?
What Is A Pollutant - And Who Pollutes???
Technical definitions aside, from a practical standpoint, almost anything that has to be cleaned up - whether it is from a building, land, air or water - may be a pollutant.
• Clean dirt that is washed off of a job site and into a salmon stream may be a pollutant.
• Bags of concrete spilled into a creek in an auto accident, may be a pollutant.
• With inadequate ventilation, paint fumes may be a pollutant.
Friday, May 14, 2010
Tools and Equipment
Wow, construction sites are still getting robbed at a alarming pace. We run theft coverage by our client's, but rarely do we sell this insurance. I can even narrow down when a theft will take place. The job site will be robbed late in the week, after hours and usually when the job is almost complete. Close to completion jobs mean two things to thieves. 1) you have your most expensive equipment set up and 2)the neighbors think the job is over and the thieves are just breaking down the job site.
A couple things to consider. See the dewalt gps units you can hide on larger equipment: http://www.brickhousesecurity.com/dewalt-mobile-alarm-gpslocator.html?googlebase&zmam=85491576&zmas=1&zmac=2&zmap=080-dw-ds500
And be really careful when renting equipment. Ask the equipment rental people if your rental has active gps. I did have two large generators stolen from a client's job site and the thieves were caught the next morning in Sacramento by the Highway Patrol when alerted by the gps locator.
But, be aware you are ultimately responsible for the replacement of the rented equipment.
Beware!
A couple things to consider. See the dewalt gps units you can hide on larger equipment: http://www.brickhousesecurity.com/dewalt-mobile-alarm-gpslocator.html?googlebase&zmam=85491576&zmas=1&zmac=2&zmap=080-dw-ds500
And be really careful when renting equipment. Ask the equipment rental people if your rental has active gps. I did have two large generators stolen from a client's job site and the thieves were caught the next morning in Sacramento by the Highway Patrol when alerted by the gps locator.
But, be aware you are ultimately responsible for the replacement of the rented equipment.
Beware!
Wednesday, April 7, 2010
New Lead Based Paint Law
New law applies to:
Any contractor renovating buildings built before 1978.
Homes
Schools
Offices
Government
Work must be performed by a certified contractor.
What Is A Pollutant - And Who Pollutes???
Technical definitions aside, from a practical standpoint, almost anything that has to be cleaned up - whether it is from a building, land, air or water - may be a pollutant.
• Clean dirt that is washed off of a jobsite and into a salmon stream may be a pollutant.
• Bags of concrete spilled into a creek in an auto accident, may be a pollutant.
• With inadequate ventilation, paint fumes may be a pollutant.
***New stand alone limited pollution policy with a low premium is available now!
Any contractor renovating buildings built before 1978.
Homes
Schools
Offices
Government
Work must be performed by a certified contractor.
What Is A Pollutant - And Who Pollutes???
Technical definitions aside, from a practical standpoint, almost anything that has to be cleaned up - whether it is from a building, land, air or water - may be a pollutant.
• Clean dirt that is washed off of a jobsite and into a salmon stream may be a pollutant.
• Bags of concrete spilled into a creek in an auto accident, may be a pollutant.
• With inadequate ventilation, paint fumes may be a pollutant.
***New stand alone limited pollution policy with a low premium is available now!
Wednesday, February 10, 2010
Did you Know?
As of October 1, 2001 all California Contractors are legally required to disclose to homeowners, in writing, whether or not they carry General Liability Insurance. If the contractor does carry General Liability Coverage he is then required to provide the name and phone number of his insurance company to the homeowner. Any time you, the contractor, do a job for someone there is a chance that you could be sued, whether you are legally liable or not. A General Liability Policy typically obligates the insurance company to defend the insured against all allegations that, if true, would be covered by the policy. The policy also obligates the insurance company to pay damages, up to the policy limit, for which the insured is legally liable
Wednesday, December 2, 2009
Deadly Wording
Be Alarmed! There are a couple of items regarding your contractor’s liability insurance policy that you absolutely must be aware of. Policies sold to contractors in California have broad differences and can have an extreme impact on your coverage. If you are shopping for the best price, you are really leaving yourself open to huge exposure. There are a couple of popular carriers in California that many successful contractors currently have. Be warned - these are terrible policies!!
First off, the insurance company itself may not have sufficient financial backing. Carriers should be “A rated” and domiciled in the United States. Be sure to avoid Risk Retention Groups and all carriers rated lower than “A.M. Best A rating,” especially if it is a California non-admitted carrier (which is usually the case). Your insurance broker can easily get you a financial report on the carrier.
Two very important things to check your policy for are: 1) a manifestation provision, and 2) a sunset clause. These two limitations restrict coverage on completed operation (jobs you have completed) for future claims of latent or patent defect.
STICK with a carrier that uses an ISO insurance form for the policy. ISO writes the actual policy that most carriers use and this form has a time tested track record in the court system. There are carriers that write their own insurance form and they change language to their favor. This typically benefits the carrier by restricting coverage for the contractor.
If you think that your broker is doing a good job by switching carriers every year or so, you are wrong. Most carriers put “prior or abandoned work exclusions” on their form and/or “ongoing or progressive losses exclusions.” These exclusions can spell disaster.
There are two major errors I see contractors making, especially general contractors. The first is NOT getting certificates with additional insured endorsements from sub-contractors, and the second is NOT using a sub-contractor agreement that includes indemnification and hold harmless wording. EVERY insurance policy has some sort of sub-contractor warranty requiring the insured to get these documents from subs. Failing to do so will really water down your policy, and could possibly even get a claim that could be covered, denied.
You must also review all the endorsements and exclusions in your policy. This is an easy way to learn what to avoid doing (work) in order to stay within your policy language. I commonly see and hear about contractors doing a job that their policy restricts them from doing, such as work on homeowner associations, apartment buildings or work outside their class of license.
Let’s face it. Liability is expensive. But wouldn’t you want to pay a little more for the better policy? If you are buying a policy from a broker that has not asked substantial questions about your operation and you just got a quick quote over the phone, the chances are good that you could be improperly insured. I make it a point to meet with each of my contractor clients.
Please collect your current policy and give me a call at 415.258-9912. We can review what type of work you do and make sure you get the best policy for your line of work.
First off, the insurance company itself may not have sufficient financial backing. Carriers should be “A rated” and domiciled in the United States. Be sure to avoid Risk Retention Groups and all carriers rated lower than “A.M. Best A rating,” especially if it is a California non-admitted carrier (which is usually the case). Your insurance broker can easily get you a financial report on the carrier.
Two very important things to check your policy for are: 1) a manifestation provision, and 2) a sunset clause. These two limitations restrict coverage on completed operation (jobs you have completed) for future claims of latent or patent defect.
STICK with a carrier that uses an ISO insurance form for the policy. ISO writes the actual policy that most carriers use and this form has a time tested track record in the court system. There are carriers that write their own insurance form and they change language to their favor. This typically benefits the carrier by restricting coverage for the contractor.
If you think that your broker is doing a good job by switching carriers every year or so, you are wrong. Most carriers put “prior or abandoned work exclusions” on their form and/or “ongoing or progressive losses exclusions.” These exclusions can spell disaster.
There are two major errors I see contractors making, especially general contractors. The first is NOT getting certificates with additional insured endorsements from sub-contractors, and the second is NOT using a sub-contractor agreement that includes indemnification and hold harmless wording. EVERY insurance policy has some sort of sub-contractor warranty requiring the insured to get these documents from subs. Failing to do so will really water down your policy, and could possibly even get a claim that could be covered, denied.
You must also review all the endorsements and exclusions in your policy. This is an easy way to learn what to avoid doing (work) in order to stay within your policy language. I commonly see and hear about contractors doing a job that their policy restricts them from doing, such as work on homeowner associations, apartment buildings or work outside their class of license.
Let’s face it. Liability is expensive. But wouldn’t you want to pay a little more for the better policy? If you are buying a policy from a broker that has not asked substantial questions about your operation and you just got a quick quote over the phone, the chances are good that you could be improperly insured. I make it a point to meet with each of my contractor clients.
Please collect your current policy and give me a call at 415.258-9912. We can review what type of work you do and make sure you get the best policy for your line of work.
Thursday, November 5, 2009
Claims Happen!
Hey, I know these are tough times and insurance costs associated with being a
contractor are a burden. What never ceases to amaze me is the number and variety claims we see in a year’s time. I thought I’d share some of these losses with you. I want you to see that regardless of the quality of your work and the fact that you’ve never had a claim, you should never skimp on insurance!
The Indemnification Claim: In this situation, a hardwood floor contractor worked for a general. His work was impeccable. The subcontractor was named in a cross complaint from the general contractor’s insurance policy. The home that was built had some water intrusion problems and the homeowner sued the general
contractor who sued the subcontractor. The subcontractor, having indemnified (or taken responsibility for) the general, turned the claim over to his insurance company. Many thousands of dollars later the claim was settled.
The Slip and Fall Claim: This was really bad. A new stairway was being built for a second floor addition. The contractors and their employees were using a makeshift ladder to access work on the second level. Over the weekend the homeowner used the makeshift ladder to inspect the progress and fell while descending the ladder. The homeowner was severely injured, and as result, every contractor on the job was sued.
The Subrogation Claim: I will not mention the brand of faucet, but three years
after the job was completed, a bushing in the kitchen faucet split and water ran under the sink, unnoticed, for hours. The homeowner made a claim on her home insurance policy and the damages (over 250K) were taken care of by the home insurance
carrier. This claim should have ended at this point, but the home insurance carrier saw that there was a permit pulled to remodel the kitchen three years prior. They turned their loss over to a law firm who subrogated the claim to both the general
contractor and the plumbing contractor who did the kitchen remodel.
I hope you never have a claim, but if you do, are you sure you have the best possible policy ?
A message from the desk of Mike Wise:
contractor are a burden. What never ceases to amaze me is the number and variety claims we see in a year’s time. I thought I’d share some of these losses with you. I want you to see that regardless of the quality of your work and the fact that you’ve never had a claim, you should never skimp on insurance!
The Indemnification Claim: In this situation, a hardwood floor contractor worked for a general. His work was impeccable. The subcontractor was named in a cross complaint from the general contractor’s insurance policy. The home that was built had some water intrusion problems and the homeowner sued the general
contractor who sued the subcontractor. The subcontractor, having indemnified (or taken responsibility for) the general, turned the claim over to his insurance company. Many thousands of dollars later the claim was settled.
The Slip and Fall Claim: This was really bad. A new stairway was being built for a second floor addition. The contractors and their employees were using a makeshift ladder to access work on the second level. Over the weekend the homeowner used the makeshift ladder to inspect the progress and fell while descending the ladder. The homeowner was severely injured, and as result, every contractor on the job was sued.
The Subrogation Claim: I will not mention the brand of faucet, but three years
after the job was completed, a bushing in the kitchen faucet split and water ran under the sink, unnoticed, for hours. The homeowner made a claim on her home insurance policy and the damages (over 250K) were taken care of by the home insurance
carrier. This claim should have ended at this point, but the home insurance carrier saw that there was a permit pulled to remodel the kitchen three years prior. They turned their loss over to a law firm who subrogated the claim to both the general
contractor and the plumbing contractor who did the kitchen remodel.
I hope you never have a claim, but if you do, are you sure you have the best possible policy ?
A message from the desk of Mike Wise:
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