Businesses and other entities face many exposures to loss during their day to day operations.  Contractors have some unique circumstances which require good risk management and sound insurance treatment.

Subcontracting  -  General Contractor Beware!

Contractors by their very nature perform operations on behalf of others (owners or general contractors).  But they often will require the services of sub-contractors themselves.  Beware of the pitfalls and plan accordingly.

	Only contract with reputable subs
	Execute an Independent Sub-Contractors Agreement or contract with all your subs
	Require them to carry Commercial General Liability insurance with limits of liability equal to yours
	If they have anyone (employee, brother, wife, son, daughter, friend) working with them, require that they carry Workers Compensation insurance
	Require a Certificate of Insurance from all subs for all required insurances before you let them on your jobsite

These are just a few of the points to consider when using subs.  Call us at 607-754-1411 and we will help you with the proper insurance requirements.  Consult your attorney for legal matters.

Umbrella Liability  -  Your Protection Against Catastrophic Claims

We highly recommend an "umbrella" policy for all contractors.   Known as excess catastrophe or umbrella liability, this important coverage will provide you with extra liability protection in the form of a higher limit of liability.   Should a lawsuit result in damages against you that exceed your primary contractor liability policy limits, the umbrella policy will respond and pick up where the primary insurance left off. 

With so many instances of lawsuits brought by employees or employees of sub-contractors alleging breach of safe work place and labor law statutes, umbrella liability coverage is critical.

For all our current construction clients, if you have not received an umbrella liability quotation recently, please contact us immediately at 607-754-1411.   Umbrella liability insurance is reasonably priced protection against catastrophic lawsuits.

Mobile Equipment  -  Liability and Physical Damage Coverage

Contractors use many types of tools and equipment while performing their work.  Of particular importance from an insurance and risk management point of view is "mobile" equipment." 

Mobile equipment is equipment that is motorized for mobility, but is not construed to be a motor vehicle.  A backhoe is a good example.  Your contractors liability insurance affords bodily injury and/or property damage coverage if a third party should claim injury from your operation of the backhoe.  If the backhoe is damaged, you must rely on contractor's equipment physical damage coverage for its repair or replacement.

A couple of thoughts on equipment physical damage coverage.  What is the value of your equipment?  Should you insure for its replacement value (new for old?).  Or is actual cash value (replacement minus depreciation) more appropriate?  Should you increase your deductible and reduce your premium?  What if you rent a piece of equipment?

We'll answer these questions and more if you give us a call at The Partners Business Insurance Center at 607-754-1411.

Like to talk to us about these and other tailored coverages for contractors?  Just give us a call at The Partners Business Insurance Center at 607-754-1411.  Or e-mail us at info@thepartners.com

These coverage descriptions are general in nature and are not to be confused with specific coverage grants, conditions and exclusions made in specific insurance policies.  Please review your policies for specific coverage details.