Labor Force Insurance

Dallas General Liability: Contractors Insurance, as an agent for the past 11 years there has been a few concurrent themes running. One is how do I save number two is how fast (can I/we/your company name goes here) can we put this in place and third of all is the contract. I hear a lot of: “I have a contract and need to sign and I don’t understand the insurance requirements. This “insurance Thing” can be a daunting thing. I hope this article will help somewhat and the goal here is to simplify a task unto itself. So Here we go – Understanding Dallas General liability.

A true story

A small contractor receives a contract and signs a contract, inside said contract is a section marked “Insurance” and action ensues. The “Small” Contractor tries to adhere to the written agreement by contacting an insurance agent and hires this agency to expedite the purchase of his needed Dallas General Liability. At this point all seems normal, a company hires a sub-contractor to perform a particular job, from electrical work to you name it. All is well the types of job’s can range from

• Concrete
• Electrical Work
• Framing
• Painting-Interior and exterior
• Remodeling

You know the list goes on, the different types of work, however we are speaking in particular your Certificate of insurance. Back to the story.

The Certificate

A contractor (this happens more often that you might think) finishes the work and pay’s his labor cost and head off to the land of payment; in other words he goes to the general contractors office. Now, here is the pristine land of “Gee, I need my money” there seems to be a problem and the problem is with the Certificate of insurance. The Texas General liability is in place, meaning there is nothing wrong with the “Company” or the agency nor the certificate. The problem is the wording on the certificate:

Ok, it gets slightly more complicated here

There are things that were requested by the “Hiring Contractor” that was part of the nifty contract that was signed by the. Well………..you. The language (conditions that change the policy) the most common are Additional Insured *the most common* and other things such as waiver of subrogation.
Now, we will break down all the language and how this changes the policy and how it increases your risk somewhat, that is a post for a different day.

Unfortunately, this can happen

You the contractor at large buys a general liability policy only to find out that his certificate of insurance is not adhering to the contract small request that upon signature he/she has signed. Although this may be a rotten practice it does happen. You have paid your labor and your material cost and now you’re being held at a metaphorical gunpoint to your head. The scenario goes something like this. You Mr. contractor may have been required to assemble a certificate of insurance for your Dallas general liability declaring things such as waiver of subrogation an additional insured inside of the description box. Although they (the hiring contractor) allowed you to go to work with nothing more than a plane certificate at this juncture is actually irrelevant. There is going to be a part two to explain some of the cost and how this/these endorsements change the policy.

Disclaimer

Now, at the risk of seeming as though I am a professional whiner – I would like you to know how much it pains me to write this on every article which is generated every day. Now, I am the sole writer of this blog on this particular website – everything here is for entertainment and informational purposes only. This is my opinion – my soul opinion and I am offering absolutely no warranty nor guarantee whatsoever. I am told if I say the following it’s less likely that I will be sued ergo, here is the next statement. Be sure that any decision you make is made in conjunction with a agent that is licensed by the state of Texas.