General Contractors: Are You Listed As Additionally Insured?

You are building an addition onto a family home that’s going to include a master bedroom, a walk-in closet, and master bathroom. You hire a plumber to handle the piping for the latter, and within a few short months, the master bedroom suite is done and your client is thrilled.

Fast forward to winter, chilling temperatures cause the pipes to freeze and water to disturb the tile and hardwood flooring. Upon inspecting the damages, you see that the plumber wired some of the piping to the exterior of the house! The homeowner turns around and files a claim with their insurance company and also names you in a lawsuit for sub-par workmanship.

At court, you are found responsible for the damages and must compensate the plaintiff.

Benefits of Naming Yourself as Additionally Insured

How did this happen? You failed to name yourself as additionally insured on the sub-contractor’s insurance policy.

This protects you should something go wrong, and you are sued for damages. It also keeps you in the loop should the sub-contractor cancel their insurance policy, are behind on payments, or change their policy for any reason. From there, you can decide whether to terminate your relationship with the contractor or confront him about it.

As a rule of thumb, you should always get a certificate of insurance from the subcontractor before any work gets performed.

Need construction insurance? Contact John Quinn at 617-612-6533 or email him at jquinn@hkinsurance.com

John began working at H&K Insurance in September 2017. With over 30 years’ experience in the insurance industry, John Quinn is armed with the knowledge and experience to fit your unique needs. He specializes in writing comprehensive insurance policies for general contractors, landscapers, and restaurant owners. Keeping your interests at the forefront of his mind, John works with insurance companies to create policies that fit the philosophy and scope of your business. Affordable and detailed are two traits that aptly describe the policies he writes. In his spare time, he enjoys taking trips to the Cape and volunteering at his local animal shelter.