Certificates of Insurance - Occurrence vs. Claim Made |
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Articles - Contractors Insurance | |||||||||
Page 5 of 6 Occurrence vs. Claim MadeCheck to see that the occurrence form box is checked. If the claims make box is checked do not accept the certificate or allow the contractor on the job site. The description of difference between Claims Made and Occurrence coverage forms could take up 4 or 5 pages of this report. This is not the time or place to go into it. If you run into it, call to discuss. Check to see that the cert has the following:
Contractors Insurance Auto Liability
When hiring sub contractors it is important because the subs are bringing their cars to your jobsite. If a sub drives onto the job site and causes an accident, the sub is responsible. But if the sub does not have auto insurance, the general contractor is next in line. Why? Because you hired him and he is on the job site working on your project. When hiring a sub you should require him to have auto insurance. The next step is to require the sub to have high limits of auto insurance, if you have $1,000,000 auto insurance so should the sub. To fully protect your business, insist that the sub have "any auto" or owned auto coverage and Hired Auto and Non-owned Auto. IT May seem that you are asking a lot from your sub, but that is what it takes to protect your business. Always check that:
Excess Liability - Optional
Excess Policy- An excess policy is simple; you can add additional coverage to your contractors insurance general liability. You may have a $1,000,000 limit but you are required to have $3,000,000 for the project. An excess policy is written for the two additional million that you need. Umbrella Policy- This is a little different, actually it is a lot different. You may be asked for $3,000,000 liability AND 3,000,000 auto liability also. In this case an umbrella is needed. Umbrella policies increase your general liability AND commercial auto insurance.
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