How does a General Contractor protect their company in spite of all these exclusions?
- It is very important to have a good working relationship with all your sub-contractors
- Also, Only use sub-contractors who are performing high quality work
What Steps Can a General Contractor Take to protect Their Company from significant financial losses or loss of your business?
- Use only fully insured sub-contractors for all components of your construction project
- Require that all of your sub-contractors provide a current copy of their certificates of insurance (COI) and verify the validity of certificate with agent listed on it
- Obtain all certificate prior to the commencement of work
- Take the extra step to verify workers compensation coverage by accessing Florida’s State insurance Website: MyFloridaCFO Division of Workers Compensation
- Secure a strong sub-contractor agreement for that job with each sub-contractor
Required Elements of a Sub Contractor Agreement
- Sub-Contractor should carry limits that are at least equal to the G.C.
- General Liability Limits 1,000,000 Per Occurrence/ 2,000,000 Aggregate
- Workers Compensation Limits 1,000,000/1,000,000/1,000,000
- Auto Liability C.S.L. Limit 1,000,000 With A Minimum of 500,000
- Umbrella Limit of 1,000,000 over their General Liability, Workers Compensation And Commercial Auto
- G.C should be named on the sub contractor’s policy as an Additional Insured for Premises Operations and Products Completed Operations Via The CG2010, CG2037 or Equivalent Forms
- Require A Waiver Of Subrogation On General Liability And Workers Compensation
- Sub-Contractor’s policy should contain Primary And Non-Contributory Language along with the G.C. named as Additional Insured
- Sub-Contractor Agreement should defend and indemnify the G.C. for any liability arising out of their work or negligence, including attorney fees and litigation cost
- A sub-contractor agreement that clearly states your safety requirements and incorporates indemnity provisions that require sub-contractors to pay for all claims and cost associated with sub-contractor caused OSHA violations
- Sub Contractor’s Insurance carrier should be rated A- or better by A.M. Best
- Recommended Certificate, Recommended Forms And Sub Contractor Agreement below
For more information, contact Innovative Insurance Consultants in South Florida.
