My small co-op is requiring that our contractor's insurance should not have an "action-over" exclusion on the policy. According to the contractor, he has worked many jobs in much bigger buildings and his coverage was fine. This building is saying that this exclusion is not permitted. Some of the articles I've read, seem to indicate that the cost of removing that exclusion is prohibitive for small... [more]
We unfortunately had to deal with it. It took the contractor two extra months to shop around and find the extra coverage. To their credit they didn't pass the extra cost on to us.
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Response by pw036
over 7 years ago
Posts: 36
Member since: Feb 2017
Thanks, do you recall roughly how much more they had to spend on this in case we're not so lucky and we need to pick up the difference in cost?
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Response by FireDragon
over 7 years ago
Posts: 110
Member since: May 2009
I believe it's to the tune of 15k, but it has to do with the size of the GC.
I went back and checked, they got it through global coverage Inc, 9 E 37th St, and the insurer is Mt Hawley Insurance Co. Hope this helps.
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Response by Primer05
over 7 years ago
Posts: 2103
Member since: Jul 2009
I believe it is in the tune of 25-30 from a carrier that has favorable pricing others could be 45-50k
I am surprised your building is making that mandatory as it just means the sub can sue the GC but each building has its own rules
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Response by pw036
over 7 years ago
Posts: 36
Member since: Feb 2017
Primer05, in your experience do most buildings not make that mandatory?
Every contractor I've talked to does not normally have that coverage, so I'm a little confused why this building is requiring it.
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Response by Primer05
over 7 years ago
Posts: 2103
Member since: Jul 2009
Most buildings do not make that mandatory, first time I am hearing that. Did you submit all the subs insurance? Liability and workers comp?
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We unfortunately had to deal with it. It took the contractor two extra months to shop around and find the extra coverage. To their credit they didn't pass the extra cost on to us.
Thanks, do you recall roughly how much more they had to spend on this in case we're not so lucky and we need to pick up the difference in cost?
I believe it's to the tune of 15k, but it has to do with the size of the GC.
I went back and checked, they got it through global coverage Inc, 9 E 37th St, and the insurer is Mt Hawley Insurance Co. Hope this helps.
I believe it is in the tune of 25-30 from a carrier that has favorable pricing others could be 45-50k
I am surprised your building is making that mandatory as it just means the sub can sue the GC but each building has its own rules
Primer05, in your experience do most buildings not make that mandatory?
Every contractor I've talked to does not normally have that coverage, so I'm a little confused why this building is requiring it.
Most buildings do not make that mandatory, first time I am hearing that. Did you submit all the subs insurance? Liability and workers comp?