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Insurnace cert verbiage...is this common?

Discussion in 'Business Fundamentals' started by Ramairfreak98ss, Mar 7, 2009.

  1. Ramairfreak98ss

    Ramairfreak98ss PlowSite.com Addict
    Messages: 1,885

    When we take any sub work from another company, snow related or not, we list them as additional insured on our business liability insurance if they request it. That means that say my company's certificate has XYB company listed in the corner as insuring work that we do for them.

    Now some companies dont even ask us for this because they already have their own liability insurance and ours is basically blanket for theirs if something were to happen, IE: slip and fall for snow.

    One company we deal with, mailed me a letter on Feb 22nd, dated Feb 3rd 09, stating they needed new insurance certs. We just mailed everything in Oct 08 so they had everything already. One thing i found was that they only had our 08 business liability cert. So i call my agent to get an 09 version, get XYB companies name put on the top, and in about 8 days, i have a mailed copy out to the company, and by March 4th an emailed copy over to the company. A day later they're emailing me from another company account rep. Then I get a call the following day from the manager to make sure i can get it sent in asap because they can't pay me.

    Now this company paid one bill already January 30th 09, i have no problem sending them the new cert. What im curious about, is that they WONT PAY until i have this issue corrected in their paperwork, but they've been SO persistent every day, that its now worrying me because i'm guessing someone slipped and fell on one of the properties that we sub from them, and so they must have checked our insurance paperwork and realized that their file expired Dec 31st 2008. So theyre on my a$$ to get the 09 so that they can claim a slip and fall or what not now. This would be our first in the last 3 years so i dont know how they legally go about it.

    Why are they in a rush to pay us? Seriously, just sit on the check until we fix it right?
    They also are now saying, after getting our copy of liability insurance, that they need "specific verbiage" on OUR insurnace cert not only showing them as additional insured but some other BS.. The manager of the office wants to call MY LOCAL INS. AGENT to tell them exactly what they want on it. This wont fly with us unless i find out exactly what it has to say up front, which they've failed to tell me so far.

    Is this normal or do i already smell a lawsuit coming up? :realmad::confused:
  2. augerandblade

    augerandblade PlowSite.com Addict
    Messages: 1,054

    We get that too. Wont pay until you update your insurance. Yes we have companys listed as additional insured, sometimes its the same company split into three divisions but they still want all listed even though ya work for only one of the divisions. My insurance agent told me " try to get just one company name listed cuz you get dinged 40 dollars (I know it only / Canadian $) everytime you list a name(s) I dont smell lawsuit I think it a company that has a procedure and ya either follow it or else we dont pay. Good Luck!!!!!!!!!!!!
  3. scottL

    scottL PlowSite.com Addict
    Messages: 1,600

    Listing another company is not hard to do. A little ding in cost. HOWEVER, what they are really doing is saying that YOUR insurance will cover and protect them regardless of an action or inaction you might have performed. Ie. they will file a claim against your insurance and never their own. So, your taking all the hits.

    Holding back money ..... uh ... more a threat than anything. What they are really doing is hedging their own insurance cost and this is a lever to get you to hop through a hoop. Start sending them invoices with a service charge.

    For me ... I will never name anyone else on my policy. Winter is snow and ice and I can not control everything and am not willing to assume everyone's risk.
  4. QuadPlower

    QuadPlower PlowSite.com Addict
    Messages: 1,056

    Have your insurance agent deal with it. But make sure he doesn't change anything until you have read it. Have him ask them if they have been sued. It would sound like a standard question coming from him.

    Good Luck