Earlier this week a fatal incident occurred at a housing development in Ewing New Jersey. According to the news reports, event was, allegedly, caused by contractor error when a 2 inch gas line was ruptured and ignited an explosion that killed one person and injured many others.
I can think of no better example of the need to be certain that whoever is working on your property has the proper insurance which has been vetted and is accompanied by a solid hold harmless and indemnity agreement before the work starts.
Our office writes frequently about the need to have a comprehensive contract which is tailored by Copper State legal principles, clearly outlines appropriate insurance requirements and limits, and has the proper evidence of insurance before the work begins.
Unfortunately, the insurance industry has grown extraordinarily complex with the application of additional insured, modification to contractual liability extensions in standard general liability coverage and umbrella endorsements. These must be thoroughly investigated as they could preclude coverage even if proper certificate of insurance has been provided. It is important to remember the certificate specifically has strong disclaimer language rendering that document, virtually, useless, actually, conveying coverage to the “certificate holder”. Unless the insurance documentation (policy declarations, policy forms listing, required endorsements, etc.) contractor provides supplements this, the chance of having coverage is, actually, less than you would think.
We are staunch advocates of an aggressive and methodical contract and insurance review process that should be part of any risk management program. If you need help in structuring such a program and would like to discuss its key elements, please feel free contact me or one of my colleagues. We would be happy to assist you in identifying the key elements and the implementation.
About The ALS Group
Albert L. Sica is the Founder and Managing Principal of The ALS Group, an independent insurance and risk management consulting firm focused on helping their clients reduce insurance and risk related costs. E-mail Al at [email protected], or call (732)395-4251 for more information.
