UNCOVERED CLAIM

I recently had to file a claim for a customer that built a shopping center.  His concrete contractor was alleged to have done defective work in that the concrete slabs were buckling and rising up.  The owner paid $20,000 to have it repaired and now wants our General Contractor to reimburse him for the damage.  The concrete contractor has since gone out of business.  Our General Contractor's insurance Company requested a copy of the certificate of insurance from the concrete contractor and our General Contractor sent it to them.  I trained him to always get certificates from all his subs and to name him as Additional Insured on their certificates.  I had also insisted he use our master subcontract agreement provided on our website, but he used a 23 page contract designed for General Contractors instead.  The problem arose when his Additional Insured endorsement attached to the certificate said "only if required by written contract".  We had to look at the 23 page contract and found that it did not require the subs to add the General Contractor as an additional insured so............. NO COVERAGE!

Disclaimer - you can print and use our Master Subcontract Agreement (MSA) and our Leased Equipment form but they come with a warning that we are not attorneys and we don't claim that they will cover all your liabilities or exposures.  We do review and update these forms as we see fit based on situations that come to light.  The MSA on our website has been updated so please use our most recent form. Your insurance policy is also a contract and all contracts should be reviewed by an attorney.

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