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Sub Contractor Insurance

Discussion in 'Business Fundamentals' started by CSLC, Oct 16, 2012.

  1. CSLC

    CSLC Senior Member
    Messages: 260

    OK, So I prob. have a dumb question here. But if you are a sub contractor for snow removal, do you just need a commercial auto policy? Or do you need GL and what ever else goes with it? Or do you just get a snow plow insurance policy?
     
  2. terrapro

    terrapro PlowSite Veteran
    from MI
    Messages: 3,878

    I guess it depends on the contractor, if they want you to be on their policy or not. I do both sub and my own stuff so I can't tell you from experience. I think I would have it anyway even if they didn't require it.
     
  3. Glenn Lawn Care

    Glenn Lawn Care Senior Member
    Messages: 551

    Mostly everyone wants you to have commercial liability insurance and worksmans comp.
     
  4. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Get all the insurance you need to protect yourself,not the contractor
     
  5. Meezer

    Meezer Senior Member
    from Indiana
    Messages: 291

    I would also highly recommend that you go thru the sub-contractor agreement that anyone gives you with a fine tooth comb.
     
  6. Ben/Insurance

    Ben/Insurance Sponsor
    Messages: 156

    Reply - sub contractor insurance

    Hi. Your commercial auto policy will respond in the event that you cause an injury or damage someone's property while plowing with your covered vehicle. General liability insurance or GL covers bodily injury and property damage for non-vehicle operations. A good example of this is the trip and fall claim after you have performed your snow removal services. You need to have a commercial auto policy for your trucks and a General Liability (GL) policy for your snow removal operations. Most GL policies written here in NY have a snow removal exclusion (no claims are covered for snow removal), so make sure you a buying the correct insurance. I'm an independent insurance agent in NY specializing in snow insurance.
     
  7. vmj

    vmj Senior Member
    from conn
    Messages: 752

    A sub needs to carry insurance for his vehicle... But if hes plowing lots that are some one else do he need his own GL??? that lot is covered by the co that has the contract for that lot?? Right or wrong??? Thanks
     
  8. Ben/Insurance

    Ben/Insurance Sponsor
    Messages: 156

    Your sub needs to carry his own truck insurance and his own GL coverage (for snow removal). If I handled the insurance for the contract holder (GC) I would recommend that the sub have the GC listed on the sub's GL policy as additional insured and have the sub sign a hold harmless agreement (indemnification agreement) in favor of the GC. These would be minimum requirements.
    In the event of a claim, everyone will be sued.
    Ben
     
  9. vmj

    vmj Senior Member
    from conn
    Messages: 752

    Why would the sub need liabilty insurance if hes plowing for someone else.? Then he might as well get the lot for himself instead of being a sub?
     
  10. Ben/Insurance

    Ben/Insurance Sponsor
    Messages: 156

    The contract holder (I'll call them the GC) has likely signed a contract with the customer (lot owner) and is being held liable for anything that happens at the job site. Why should the GC be responsible for the acts of the sub? So the GC requires that the sub carry good qualtiy insurance so he can pass the liability to the sub. If the sub wants to solicit his own accounts and service them himself (without a sub) that's his option. but a good business owner would procure the right insurance anyway.
     
  11. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    See post #4Thumbs Up
     
  12. vmj

    vmj Senior Member
    from conn
    Messages: 752

    got it... thanks just always thought sub was covered under gc since gc has to show insur card with contract.