If you’re a Contractor or Sub-Contractor bidding on a job, be sure to ask for a copy of the contract BEFORE submitting your bid.
All too often, the contract requirements for insurance are overlooked initially. This can be the difference between a profitable job, or not. When you receive the contract, submit it to your insurance agent for a quick review. There is no charge for this and we can help compare your current policy with contract requirements. We have multiple methods for you to submit your documents to us for review. E-mail your agent, text us at 320-314-4739, or submit the documents online via the “contact us” page.
Why Should Your Agent Review the Contract?
When we receive requests from contractors for a Certificate of Insurance (“Cert”), we will ask if there are any insurance requirements that need to be addressed. Most of the time, the answer we get back is “no.” But once the cert is created & submitted to the requestor, we often receive notification stating the cert is non-compliant with the requirements of the contract.
Here are a few of the contract requirements we typically see:
- The job or general contractor should be listed as additional insured
- A Waiver of subrogation
- Higher liability limits (than what the insured currently holds)
- Insurance policies the insured doesn’t currently carry, such as Work Comp or Umbrella
All of these requirements cost additional premium.
We are here to help.
We can let you know the cost of these additional requirements and you can make an informed decision. Do you still want to submit your bid? Could you add the additional cost into your bid? Is it worth it to bid on that job at all? These are all things to consider.
We have seen our insured customers made very little profit, if any, on jobs once the additional premiums are factored in. As our customers, we want to see you succeed! Which is why you should work with your agent, and get a copy of the job contract BEFORE you submit your bid.
Contributed by: Rhonda Scheffer-Domino, Commercial Lines Agent, Town & Country Insurance, Mora Office