Florida Pool Pro
sm
• March 2014
13
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from the subcontractor and includes
a hold harmless clause in your favor.
Most of this (with the exception of the
written agreement) is evidenced in the
Certificate of Insurance provided by the
subcontractor.
Always require a valid Certificate
of Insurance be provided before the
subcontractor performs any work for you.
Don’t wait until the job is done and you
are ready to pay the sub to confirm he has
insurance. This is because, if they don’t
have the proper insurance coverages it
causes a problem because insurance
coverage cannot be backdated. So, if it
is June 1 and the work was performed
between May 1 and May 15 any new
insurance will be effective on, or about,
June 1. Therefore that time your sub
worked he was uninsured which may cost
you dearly in both premium and if a claim
occurs as a result of anything related to the
work that sub did for you.
You should also expect good jobsite
safety practices of your subcontractors to
maintain a safe, secure, and clean jobsite.
Requiring the subcontractor to adhere to
the same strict safety standards that you
hold your employees to is a good practice.
In closing, many of the rates and
premiums of your insurance policies have
some subjectivity to them. That means
the underwriter has the ability to discount
rates and premiums if warranted based on
superior risk qualities. Therefore, there
can be rate differences based on the
factors outlined above. There can also
be differences in coverage forms from
insurance carrier to carrier.
Control your insurance destiny by
doing as much as you can to ensure your
company is the recipient of the broadest
coverage and most attractive pricing the
marketplace can offer.
