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Construction Insurance Requirements by whadeduck
Started on: 10-22-2006 05:52 PM
Replies: 9
Last post by: rogergarrison on 10-23-2006 04:34 PM
whadeduck
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Report this Post10-22-2006 05:52 PM Click Here to See the Profile for whadeduckClick Here to Email whadeduckSend a Private Message to whadeduckDirect Link to This Post
Anyone else notice that the GL requirements, for construction anyway, is spiraling out of control? We are now required to carry a minimum of $3,000,000.00 per occurance, per project, per complaint coverage if we want to continue to work for anyone. We've had to search for other subcontractors to work with us because some of the smaller ones can't afford the added coverage. The sub who does our parking lot striping does excellent work, is dependable, and we've used him for the last ten years. But we have to stop using him now because, with only himself and one other employee, he can't absorb the extra coverage. Are things getting like this in other areas too?

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Whade' "The Duck Formerly Known As Wade" Duck
'87 GT Auto
'88 Ferrario
'84 Indy (8/26/06)

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Report this Post10-22-2006 06:27 PM Click Here to See the Profile for isthiswhereiputausername?Send a Private Message to isthiswhereiputausername?Direct Link to This Post
Ouch! Thats pretty high coverage for the average job.

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whadeduck
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Report this Post10-22-2006 06:36 PM Click Here to See the Profile for whadeduckClick Here to Email whadeduckSend a Private Message to whadeduckDirect Link to This Post
For the most part, the projects we work on aren't even worth that much. Our part anyway. Another one, and I'm sure we can thank the insurance companies for this one, we have to put a clause in our coverage for each project that pretty much says that, whomever we're working for, even if they're the ones who goofed, we have to cover the incident. It comes down to about ten percent of or gross receipts having to go for GL coverage alone, and we have no recorded incidents. It's construction coverage not malpractice insurance.

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Whade' "The Duck Formerly Known As Wade" Duck
'87 GT Auto
'88 Ferrario
'84 Indy (8/26/06)

[This message has been edited by whadeduck (edited 10-22-2006).]

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84fiero123
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Report this Post10-22-2006 09:55 PM Click Here to See the Profile for 84fiero123Click Here to Email 84fiero123Send a Private Message to 84fiero123Direct Link to This Post
Sounds like your boss is most of the problem, if he didn't spend so much of the companies money he could afford the ins.

Or maybe he has just screwed up to many times and the ins. company is just getting back at hi,.

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technology is great when it works
and one big pain in the ass when it doesn't.
Detroit iron rules all the rest are just toys.

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whadeduck
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Report this Post10-22-2006 10:12 PM Click Here to See the Profile for whadeduckClick Here to Email whadeduckSend a Private Message to whadeduckDirect Link to This Post
Actually, and I hate to defend the boss, we can afford the insurance. Affording it is not so much the issue. It's just that it's so damned high and rediculously all inclusive. We even have to cover our subs even if they have plenty of insurance. When we get our yearly audit, we get charged a little extra for each of our subs that we use. This one, although hard to believe coming from me, has nothing to do with the boss' spending habits. Probably has more to do with the enormous amount of insurance fraud in South Carolina. The insurance companies pay out so we have to pay up. I really don't like the fact that our insurance company is telling us who to keep and who to fire as far as our employees go. They want us to get rid of anyone who has a single speeding ticket or traffic violation on their personal driving record. Even if it was three years ago. We've told them that it'll leave us with very few employees and slim pickens for re-hiring. Their respons is to not have us up for renewal next year. Same ol' story. They want you to pay the ungodly large premiums but God forbid they ever have to relinquich any of it. Grr I say!

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Whade' "The Duck Formerly Known As Wade" Duck
'87 GT Auto
'88 Ferrario
'84 Indy (8/26/06)

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Spoon
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Report this Post10-22-2006 10:40 PM Click Here to See the Profile for SpoonSend a Private Message to SpoonDirect Link to This Post
Sounds like their jumping in with the health care band-wagon. Insurance companys are getting like the gangsters of yester year.
A short amusing story.... When the 1st roller coasters that go thru that upside down loop hit the parks, an insurance company did not want to insure the ride because the risk of people falling out of the cars.
The Park owner granted a group of insurers a demonstration ride on the coaster. After several sucessful loops the operator stopped the cars upside down at the top of the loop for several minutes. When nobody fell out he brought the cars back to the station giving the Insurance agents a whole new outlook on life.
Now most major parks have them.


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sc3800ttops
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Report this Post10-22-2006 10:42 PM Click Here to See the Profile for sc3800ttopsClick Here to Email sc3800ttopsSend a Private Message to sc3800ttopsDirect Link to This Post
I feel your pain and have similar issues. We require only 1 milion GL plus a laundry list of other criteria including a statement that all their employees have had background checks completed and are legal. (trying to get landscape work & roofing is a pain in the A) We also require being listed as additional insured on EVERY policy. Including every Auto policy. This pisses off all the people that could get away with not even driving onto the site and merely parking on the road.

Many contractors that I like and wish to do business with will change there policy for the duration of time they do a job for me, ultimitely they increase their bids to reflect the upcharge they get. Fine with me.

Good luck. Your not alone.
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AusFiero
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Report this Post10-23-2006 10:25 AM Click Here to See the Profile for AusFieroClick Here to visit AusFiero's HomePageClick Here to Email AusFieroSend a Private Message to AusFieroDirect Link to This Post
In Australia all tradesman, contractors, builders etc have to have $10,000,000 coverage.
Crazy.
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whadeduck
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Report this Post10-23-2006 11:37 AM Click Here to See the Profile for whadeduckClick Here to Email whadeduckSend a Private Message to whadeduckDirect Link to This Post
That's insane. It all stems from people who want something for nothing sueing the construction companies hoping for free money. Then the insurance companies, alot of times without knowledge of the insured, will settle with the claimants. Then your rates go up because of bogus claims. All these false claims have to be covered, so the coverage amounts have to too. The magic number used to be one million. But apparently thats' not enough foe some people, so now it's three. In another five years, I think it'll be at five. It'll just keep climbing until the base rate per occurance will end up being more than most comanies make in a year.

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Whade' "The Duck Formerly Known As Wade" Duck
'87 GT Auto
'88 Ferrario
'84 Indy (8/26/06)

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rogergarrison
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Report this Post10-23-2006 04:34 PM Click Here to See the Profile for rogergarrisonClick Here to Email rogergarrisonSend a Private Message to rogergarrisonDirect Link to This Post
Same thing goes on major manufactured goods. Planes for example are double or more the cost of what they could be if they didnt have to give product liability coverage for the life of the item. ie/ Cessna had to warranty that nothing in the construction would fail for the life of the airframe that could lead to a death. For most private planes, thats at least 60 years....and thats ridiculous. That made 4 place ones that could be had for say $50K not too long ago, now cost $150K and Up for the same basic airplane that was built in the 1950s. I sold my 77 Lance, 7 passenger maybe 15 years ago now for $40K used in mint condition. I see them now in trade a plane for $160K for used ones of similar vintage. I cant believe constrution liability is anywhere near that for say building a $150K house. What kind of damage are they going to do to it that could cost $30 million ? Maybe Im missing something???
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