IMPORTANT INFORMATION REGARDING YOUR COMMERCIAL GENERAL LIABILITY INSURANCE
LACK OF COMPLIANCE WITH INSURANCE COMPANY REQUIREMENTS COULD RESULT IN DENIAL OF CLAIMS
A FEDERAL COURT IN FLORIDA RECENTLY FOUND THAT A GENERAL CONTRACTOR WHO FAILED TO PROVIDE REQUIRED DOCUMENTATION AND FOLLOW COMPANY PROCEDURES FOR HIS CGL POLICY DID NOT HAVE ANY COVERAGE, AND HIS CLAIM WAS DENIED.
COMPANIES THAT PROVIDE CGL COVERAGE NOW REQUIRE THE FOLLOWING:
- OBTAIN CERTIFICATES OF INSURANCE FROM SUBCONTRACTORS PRIOR TO STARTING WORK. (THIS MEANS BEFORE THEY STEP FOOT ON THE JOBSITE)
- CONFIRM THAT THE SUBCONTRACTORS' GENERAL LIABILITY POLICIES ARE VALID. (CONTACT THE COMPANY LISTED ON THE CERTIFICATE TO VERIFY VALIDITY)
- OBTAIN A HOLD HARMLESS AGREEMENT FROM YOUR SUB-CONTRACTORS. (YOU CAN CONTACT OUR OFFICE FOR A SAMPLE)
- REQUIRE THAT ALL SUBS NAME YOU AS ADDITIONAL INSURED ON THEIR GL POLICIES. (GET IT IN WRITING ON THE CERTIFICATE ALONG WITH THE ADDITIONAL INSURED FORM)
- NOTIFY YOUR SUB'S CARRIER IF THERE IS A LOSS. (THERE ARE TOLL FREE NUMBERS LISTED ON A COMPANY'S WEBSITE FOR THEIR CLAIMS DEPARTMENT)
THE FLORIDA FEDERAL COURT HAS SET A PRECEDENT THAT WILL IMPACT ALL FUTURE COURT DECISIONS. FAILURE TO COMPLY WITH THE ABOVE MENTIONED REQUIREMENTS COULD HAVE A DEVASTATING IMPACT ON YOUR BUSINESS.
PLEASE CONTACT OUR OFFICE AT 1-800-323-7116 IF YOU HAVE ANY QUESTIONS.
