18
Florida Pool Pro
sm
• March 2015
language.
Most businesses hire a subcontractor from time to time and each time your
company is at risk. That is because, ultimately, you can be held accountable,
or liable, for much of the actions of the subcontractor. Whether it is determined
legally in court, or simply the opinion of a good customer, you often will be
involved with any issues or problems which may arise out of your work and
your subcontractors’.
Therefore, we should take the relationships with subcontractors very
seriously and structure good controls. You should seek the counsel of a good
construction attorney. It is suggested, at the very least, that you mandate that
all subcontractors comply with the following:
1.Maintain the same general liability limits you do or higher ($500,000 per
occurrence minimum and $1,000,000 for excavation, gunite and shotcrete).
2.Add your company as an additional insured to their general liability policy.
3.Provide evidence of a workers’ compensation insurance policy in their
company name if an employee, laborer, helper, etc. is brought to any jobsite.
A valid workers’ compensation exemption is sufficient when it is only that
person working on your jobsite. This is critical.
4.Execute a formal written contractor-subcontractor agreement which requires
a waiver of subrogation 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 May15 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 should a claim occur as a result of
