Dear Valued Customers,<\/p>\n\n\n\n
In our continued effort to keep you informed on the latest trends and claims, this month’s newsletter focuses on an issue that has recently cost some of our insureds dearly: hiring contractors and sub-contractors<\/strong>.<\/p>\n\n\n\n Over the past years, we’ve seen two large claims involving contractor and sub-contractor employees \u2014 and both offer important lessons for protecting your business.<\/p>\n\n\n\n Case #1: A $6.5 Million Verdict<\/strong><\/p>\n\n\n\n Our insured hired a legitimate, licensed contractor to perform work on their premises. One of the contractor’s employees was injured on the job.<\/p>\n\n\n\n While that employee was compensated through the contractor’s Workers’ Compensation policy, they didn’t stop there \u2014 they also sued our insured directly, arguing the injury occurred on the property they owned. The case went to trial, and the jury ruled against our insured, awarding the injured worker $6,500,000<\/strong>.<\/p>\n\n\n\n Case #2: An Uninsured Sub-Contractor Chain<\/strong><\/p>\n\n\n\n In the second incident, our insured hired a sub-contractor to perform work on the premises. That sub-contractor, in turn, hired another<\/em> sub-contractor to help with the job \u2014 without our insured’s knowledge or approval.<\/p>\n\n\n\n That second sub-contractor was seriously injured while working on the property. Neither he nor the sub-contractor who hired him carried proper insurance, such as Workers’ Compensation, and neither had signed an indemnification agreement with our insured. Now, the injured worker is suing our insured directly. Given the severity of the injuries, this claim has the potential to be substantial.<\/p>\n\n\n\n Lessons Learned<\/strong><\/p>\n\n\n\n These two cases highlight two critical steps every property owner should take before hiring outside labor:<\/p>\n\n\n\n 1. Verify insurance \u2014 every time, for every contractor.<\/strong> These requirements are simple for a contractor to add to their existing policy, typically at little to no extra cost \u2014 but they can make the difference between a covered incident and a lawsuit that lands squarely on you.<\/p>\n\n\n\n 2. Consider raising your liability limits.<\/strong> The Bottom Line<\/strong><\/p>\n\n\n\n We understand that controlling costs when hiring contractors and sub-contractors matters to every business. But hiring properly insured contractors \u2014 and confirming that coverage in writing before work begins \u2014 can protect your business from a claim that could otherwise put your assets at serious risk.<\/p>\n\n\n\n If you have questions about verifying contractor insurance or reviewing your liability limits, please don’t hesitate to reach out.<\/p>\n\n\n\n Sincerely, Dear Valued Customers, In our continued effort to keep you informed on the latest trends and claims, this month’s newsletter focuses on an issue that has recently cost some of our insureds dearly: hiring contractors and sub-contractors. Over the past years, we’ve seen two large claims involving contractor and sub-contractor employees \u2014 and both offer […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[13],"class_list":["post-33","post","type-post","status-publish","format-standard","hentry","category-commercial-insurance","tag-claims-prevention"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t
Before any contractor or sub-contractor begins work on your property, confirm they carry adequate insurance and require them to name you on their policy. Specifically, they should:<\/p>\n\n\n\n\n
Jury awards continue to climb, and many of our insureds currently carry only $1,000,000 in liability coverage \u2014 which may not be enough to cover a serious injury claim. A commercial umbrella policy can extend your coverage up to $5,000,000 or more, often at a relatively modest cost. Reach out to your agent to discuss your options and get pricing.<\/p>\n\n\n\n
The RKM Team<\/p>\n","protected":false},"excerpt":{"rendered":"