Taken at face value, a general liability insurance policy for your construction company sounds like it would protect against any accidents and injuries on company premises and customer property. However, while a general liability policy is the foundation of your construction insurance policy, it is only as good as the policy language that it contains.
It’s critical that you fully understand exactly what is covered by your policy before any claims are filed. A policy purchased on price alone can leave you exposed in ways that could destroy your business in a heartbeat.
All NY Construction General Liability Insurance Policies are Not Created Equal.
Schaefer Enterprises’ deep knowledge and experience in the construction insurance business can help you find the right policy to fit any individual project.
4 Ways Your Construction Insurance Policy May Leave You Exposed:
1. Labor law exclusion and injury to employees
In SEI’s experience, labor law is the most overlooked aspect in construction insurance policies and arguably the most important to an employer’s business. Specific to New York state, your general liability policy needs to take into account the labor law exclusion. For example, if your business was in another state and your employee got hurt on the job, your workers’ compensation policy would pay the employee’s bills. In New York, however, the employee can file a suit against the property owner and/or general contractor who, by means of an indemnification agreement, will then look to the employer for coverage. If you’re the employer and there’s a labor law exclusion in your policy, your insurance carrier may exclude any injury an employee or subcontractor’s employee incurred on the job and not cover the claim.
2. Blanket additional insured
If you believe your business is protected by additional insured status in a construction agreement, you should have SEI’s Construction Group review the policy to make sure that is so. Even where required by written contract, any owner/contractor/lessee who believes they are protected as an additional insured under a policy may, in fact, be mistaken unless they are clearly named in specific additional insured endorsements. Schaefer Enterprises, Inc. can carefully review the language of the blanket additional insured endorsements and confirm your status as an additional insured under a policy.
A general liability policy is the foundation of your construction insurance policy, but it is only as good as the policy language that it contains.
3. Waiver of subrogation
A waiver of subrogation is an endorsement that prohibits an insurer from recovering the money it paid on a claim from a negligent third party. For example, if a worker left on a space heater and it caused a fire that burned down an insured’s property, the property insurer would be prevented from turning around and suing the subcontractor to recover the money it paid out to the property owner. Schaefer Enterprises can help you craft airtight waivers of subrogation agreements between the insured and the potential negligent party, and between the insured and the insurer. Having both is recommended.
4. Full contractual
SEI knows that if you work in the construction industry, you are part of one of the world’s most dangerous businesses. Typically, full contractual means the insured will have no contractual limitations or labor law exclusions in their policy.
Our knowledge of New York state labor laws, specifically pertaining to construction, gives business owners peace of mind as well as cost savings and a leg up on the competition. We offer a thorough review of all your subcontractors’ ACORD certificates and sub agreement contracts to make sure you are covered adequately.
Getting the right NY construction general liability insurance policy
A good construction insurance broker will ask about the type of construction projects you work on, where, how big and for whom, and will make appropriate insurance recommendations based on YOUR business. Remember your construction insurance policy is only as good as the language included within.
Want to know if these 4 items are in your NY construction general liability insurance? Call us at 877.237.2481 to learn more about your construction insurance.
