"If I'm a general contractor and developer and hire sub

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PostPosted: Thu Jun 05, 2008 6:54 pm   Post subject: "If I'm a general contractor and developer and hire sub  

"If I'm a general contractor and developer and hire subs to complete the infrastructure for my development and get listed as additional insured on all subs policies, why do I need insurance?

Hammer
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PostPosted: Fri Jun 06, 2008 12:56 am   Post subject:   

You can still be held liable for _your actions_ and liable for the wording of the contract. Most customers will not hire a contractor unless _they_ are insured, for this reason. Also, there is no guarantee that the subcontractors policy will be an absolute remedy for you. Lastly, and this is important... _your_ policy will always provide you a defense. A sub-contractors policy is only as good as good as the additional insured endorsement and your contract with the sub.



I got a claim last week where the subs employee was injured when he fell from a roof and was not wearing a harness. The subs workers comp policy kicked in and provides the sub immunity but the employee came back and filed suit against the general as he states the general and sub told him he did not need a harness. Now this may be a baseless claim but a defense is still needed. Granted, we will tender the claim to the sub but the IA agreement probably only extends coverage under the contract and the contract does not address things the general "said" or did.

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PostPosted: Sat Jun 07, 2008 5:30 am   Post subject:   

I feel, we need to understand the difference between an "additional insured" & an "additional named insured".

The latter one is rather an affiliate of the main policy holder. He might even need to pay for premiums. Again there are some coverage exclusions which would not be applicable to the additional insured.

plasmahectic


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PostPosted: Sat Jun 07, 2008 5:38 am   Post subject:   

A sub is never going to be added as an additional named insured... at least not be any decent insurance company.

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PostPosted: Sat Jun 07, 2008 5:52 am   Post subject:   

Hi all!



I would personally feel that we should look at the trend where the insurance companies are out to alter the additional insured endorsements thus enabling them to restrict the coverage norms. Now-a-days, the addl. insured endorsements are meant to cover pre-construction claims & not the ones post construction. A shift like this has restricted claims arising out of construction hazards which are a common experience nearing the completion of a project. Tx, hybrid-knomen


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