There is no getting around it – every work site needs to have adequate insurance coverage. Workers, subcontractors, general contractors and site owners need different insurance products to protect the different aspects of the work they perform.
General contractors often ask their subcontractors to sign contracts that ensure the protection of their company against lawsuits should an accident occur on the worksite. The purpose of these contracts is twofold. First, the contract makes certain that the subcontractor working on the site, whether overseeing installation of flooring, electrical, HVAC, etc., has the resources to pay a claim that may be made against them. Secondly, the contracts have various legal requirements such as, indemnification, hold harmless, waiver of subrogation and additional named insured wording in favor of the general contractor.
Where the Problem Lies
While these contracts can insure against a range of potential issues, there is no one-size-fits-all contract that protects all parties from all situations. Subsequently, these contracts need to be updated frequently to account for new, expired and obsolete insurance products. While some insurance coverage may no longer be applicable to specific carriers, some may be dead to the industry as a whole.
Building a Solution
In order to ensure that your contracts are legally bonding and as up-to-date as possible, it is important that you bring an insurance professional into the contract agreement. Your agent will be able to tell you if you have the appropriate products in your contract to protect yourself and others on the site. It is difficult enough to keep a job site on schedule and within budget. The last thing you need on site is for an accident to occur and to be liable for negligent acts that were caused by your subcontractors.
Call your insurance agent today to make sure that you have the coverage you need, that your contracts are current and serve the purpose that they were designed to handle.