by Guest » Mon Feb 04, 2008 08:56 pm
More and more I have contractors and owners requiring additionally insured for completed operations on our policy here in GA. We can get it but it's outrageously expensive (roughly $1,300 per job, per year, per AI) - I have one now that asks for the owner and contractor to be named for three years, which adds up to $7,800 - all for about $50,000 worth of scope!
Does this charge seem reasonable? Aside from negotiating is there some other method that we can obtain similar (yet cheaper) coverage to make everyone happy? As it stands, it looks as though we are going to begin to lose business because of this!
Does this charge seem reasonable? Aside from negotiating is there some other method that we can obtain similar (yet cheaper) coverage to make everyone happy? As it stands, it looks as though we are going to begin to lose business because of this!
Posted: Tue Feb 05, 2008 12:02 am Post Subject:
Member-Gregg,
Could you elaborate on what your role in all of this? Why do you have to provide insurance, shouldn't the contractor or owner provide their own insurance?
I am a little confused here, please give more detail on your role.
Welcome to the forum, you have come to a great place to get advice, lots of pro's here that will give you lots of good advice.
Posted: Tue Feb 05, 2008 05:07 am Post Subject:
Hi Member-Gregg,
Welcome to the forums!
More and more I have contractors and owners requiring additionally insured for completed operations on our policy here in GA.
Please explain whether you're an insurer or an agent. I think that would help everyone empathize with you.
Regards,
Fatman
Posted: Tue Feb 05, 2008 05:15 am Post Subject: flat for 3 years ?
Listen insuring contractors along with their operations is not a joke.
I have one now that asks for the owner and contractor to be named for three years, which adds up to $7,800 - all for about $50,000 worth of scope!
$7,800 upright is not easy to pay for all though, to me it seems okay if its gonna stay still for all the 3 years time. So, you gotta check up with the papers if its gonna stay flat!
Thanks, Color-dire
Posted: Tue Feb 05, 2008 06:22 am Post Subject:
Member Greg, the OP wrote:
More and more I have contractors and owners requiring additionally insured for completed operations on our policy here in GA. We can get it but it's outrageously expensive (roughly $1,300 per job, per year, per AI)
Completed ops coverage is typically associated with liability environments, but you probably knew that. My assumption is that you are referring to some type of manufacturing situation, resale/retail, construction or other commercial insurance risk. I've been dealing with commercial risk for a number of years, and normally Products and Completed Operations coverage is simply one coverage in a commercial package, or included in lesser forms of commercial, like a BOP.
My experience with this coverage form is that it shouldn't necessitate more than underwriting approval for the additional insured and any associated liablility, endorsing the policy to reflect ther change, the issuance of a few COIs, and perhaps a higher premium at audit if the risk calls for it.
I'm also guessing that you could be referring to a stand-alone Completed Ops coverage, and maybe buying it on a case by case basis? I may be way off, and there are ways to do this, but this shouldn't be necessary. The more I read the post, the more I assume construction contracting?
In any case, I can see the need for underwriting the additional insured endorsement, but I cannot see the need for a lot of extra premium (such as you mentioned), as the carriers risk should be minimized based on the coverage amounts and not the number of insureds. There are policies that mess with the number of insureds, but not normally in the construction industry. So- the company's liability is limited to the per occurrence and aggregated coverage amounts. Shouldn't matter if it's a claims-made or occurrence contract- the premise holds.
Would like to see some more comments from the forum members, it's an interesting topic. If you think I was way off base on what you were getting at, please tell me.
InsTeacher 8)
Posted: Wed Feb 06, 2008 05:59 am Post Subject:
I have to agree with "Guest'. I never knew carriers charged a premium to add an AI. Of course I am an adjuster not an underwriter or agent. I also agree that the only policies I have seen are AI's on General Liability policies, I've never seen a stand alone Completed Op's policy (does such a thing exist?).
AI's are a deadly think when it comes to coverage. No underwriting is done on the AI so they could be the devil and they would still get coverage under the insureds policy. Basically it's a free ride on the insureds policy for coverage.
Posted: Wed Feb 06, 2008 11:53 am Post Subject:
Ok guys, what is an AI?????
Posted: Thu Feb 07, 2008 06:38 am Post Subject:
Hi goodnatured, the first thing that came to my mind was Allstate insurance. But after going through the above posts I have this feeling that they might just be referring to some add-on policies.
Sally Thornton
Posted: Fri Feb 08, 2008 04:55 am Post Subject:
Additional Insured, in this case.
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