Subcontractor’s
Dallas General Liability Insurance: Contractors. Thank you for dropping by tonight, we know that are thousands of web sites that you could have go to but here you are and we as a team are grateful. If you just need to get some pricing on Premiums we can do that really, really fast. The truth is if you don’t have losses then we can get your pricing very close within minutes. And we will be here to answer any of your questions if you decide to call. Today let’s go over something that seems to always be a problem. The problem is that if you hire a sub contractor then two things have just happened to your Dallas General liability insurance Coverage.
Sub Contractors change everything
Now, how this works is this: you are a contractor and let’s say here amid our make believe scenario most of the time you work alone and say….. you hire out work on a subcontractor basis just 10 times in a good year. Well, a couple of things have just happened and remember these “things” that happened are not up for vote: this is just how it maybe. For the sake of argument let’s say your sub contractor has a claim. The amount of this claim will be $25,000 and one or two things happen. Scenario number one – let’s say that you hired an electrician, there was an electrical fire of $25,000 and your subcontractors insurance pay for everything. That is the good news, there might be some bad news. When the insurance carrier for the subcontractor pays the claim it’s a very good possibility that they now have the right to recoup the amount of the claim against whomever they choose. You hired the contractor and may not like this but there is a possibility they may choose you. Dallas General Liability insurance here is number TWO
Number Two
Now, there may not be a scenario that works out in your favor when you have a subcontractor with a claim unless you have told said contractor to make you –
- Certificate Holder
- Additional Insured
- Waiver of Subrogation
- Thirty day notice of cancellation
- Yes, there can be more
Now, here we go here can be more but this is a very good start. I will give a basic explanation of my opinion and we will go from there. Let’s start with cert holder.
Cert Holder
Now, the certificate holder is going to be recognized by the insurance company that is issuing the coverage as the person who is to be insured against negligence. The certificate holder wants to be named as an additional insured with a waiver of subrogation and a 30 day notice of cancellation.
Waiver of subrogation
The waiver of subrogation is supposed to work in tandem with additional insured, the idea behind waiver of subrogation is a fancy way of saying – that the insurance carrier is not going to turn around in litigate you to recoup their loss.
Additional Insured
Now, additional insured basically has a meaning that may go something like this, additional insured means that the policy would defend the certificate holder in case of a lawsuit and/or loss. By becoming an additional insured you are protected to the policy limits just like the person who purchased the policy.
Disclaimer
Now, I wrote this and this is my opinion and my opinion alone. For everything on this blog roll and this website in particular I offer no guarantee nor any type of warranty whatsoever. The information here in should be used as just that – informational purposes only and entertainment. If for any reason you have any other questions or need anything concerning our disclaimer please click here