Before starting any project, New York contractors must ensure they have proper insurance documentation from their subcontractors. This is crucial to protect both parties and ensure smooth operations. Here’s a rundown of the essential documents contractors should collect:
1. **Certificates of Insurance (COIs)**: These certificates provide proof that subcontractors have the necessary insurance coverage. The COIs should clearly state the subcontractors’ liability limits.
2. **Additional Insured Endorsement**: Make sure the subcontractor’s insurance policy lists the contractor as an additional insured. This means the contractor is protected under the subcontractor’s insurance policy.
3. **Primary and Non-Contributory Coverage**: The subcontractor’s liability policy should be primary and non-contributory. This means their insurance will be the first to cover any claims, without expecting contribution from the contractor’s policy.
4. **Waiver of Subrogation**: This clause prevents the subcontractor’s insurance company from seeking reimbursement from the contractor for claims paid out.
5. **Contractual Liability**: Ensure that the subcontractor’s policy includes coverage for any liabilities assumed under the contract.
6. **Insurance and Hold Harmless Agreement**: Contractors should have an agreement on file for each subcontractor. This agreement states that the subcontractor will hold the contractor harmless for any incidents arising from the subcontractor’s work.
It’s important to note that many New York contractor liability policies require subcontractors to carry specific minimum coverages. If these requirements are not met, the contractor’s policy may not cover claims arising from the subcontractor’s negligence.
For assistance with construction insurance needs, New York contractors can turn to the BGES Group. Specializing in insuring New York contractors, BGES Group offers expert guidance and support. Contact Gary Wallach at 914-806-5853 for help or to obtain a sample insurance or hold harmless agreement for subcontractors.