Author Archives: admin

Commissioner Mike Yaworsky Highlights Rating Upgrades for Several Tax Bonds — Underscoring the Market is Stable

Posted on by

Florida Insurance Commissioner Mike Yaworsky is affirming that Florida’s property insurance market is stable, as demonstrated by the recent rating upgrades for three Florida special tax bonds. Moody’s Ratings recently upgraded ratings for several Florida assessment-backed special tax bonds, including Florida’s Hurricane Catastrophe Fund, Citizen’s Property Insurance Corporation and the Florida Insurance Guaranty Association.

TALLAHASSEE, Fla.— Florida Insurance Commissioner Mike Yaworsky is affirming that Florida’s property insurance market is stable, as demonstrated by the recent rating upgrades for three Florida special tax bonds. Moody’s Ratings recently upgraded ratings for several Florida assessment-backed special tax bonds, including Florida’s Hurricane Catastrophe Fund, Citizen’s Property Insurance Corporation and the Florida Insurance Guaranty Association.

Insurance Commissioner Mike Yaworsky said, “These recent upgrades continue to show that Florida’s insurance market is maintaining stability. Even with Florida’s unpredictable weather, a major bond rating agency agrees that several of Florida’s tax bonds are strong and have ample capacity to cover claims.”

Source: Florida Office of Insurance Regulation

https://floir.com/newsroom/archives/item-details/2024/11/25/commissioner-mike-yaworsky-highlights-rating-upgrades-for-several-tax-bonds-underscoring-the-market-is-stable

H.B. 6295 would allow counties to transfer control of county roads to townships

Posted on by

Michigan House Bill 6295, introduced on June 30, 2022, by Representative Jeff Yaroch, aims to amend the 1969 Public Act 296. This act governs the transfer of jurisdiction over highways and roads between various local authorities in Michigan. Specifically, H.B. 6295 would allow counties to transfer control of county roads to townships, provided there is mutual agreement between the involved jurisdictions.

The proposed amendments focus on refining legal definitions and clarifying the process for jurisdiction transfers. Terms such as “highway authority,” “highway,” and “board” are defined to ensure consistent interpretation across jurisdictions. A key provision of the bill is that no highway transfer can occur without formal consent from both the transferring and receiving entities. 

Such consent must be expressed in a written agreement that is approved through resolutions adopted by both parties.

This bill highlights a shift toward greater flexibility in road management, particularly for townships that may seek direct oversight of local infrastructure previously managed at the county level. By allowing such transfers, the bill may provide townships with an opportunity to address specific road maintenance needs more effectively.

Following its introduction, the bill was referred to the Committee on Transportation for further deliberation. However, as of the latest updates, it has not advanced beyond this stage in the legislative process.The bill reflects ongoing efforts to improve local governance and infrastructure management, potentially providing townships with greater autonomy and control over their road systems.

FMCSA Wins Historic Judgment Against Moving Company

Posted on by

Washington DC – The U.S. Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) secured a historic ruling against moving companies for transporting household goods without FMCSA registration, violating federal regulations. The judgment comes as FMCSA strengthens state partnerships and takes further actions to protect consumers moving across state lines.

On September 11, 2024, the U.S. District Court for the Central District of California ordered USA Logistics to pay $25,000 in fines for multiple infractions of FMCSA laws. The ruling stems from a lawsuit filed by the U.S. Department of Justice on behalf of Secretary Pete Buttigieg. As part of the settlement, USA Logistics admitted to the violations and committed to adhering to the law moving forward.

“This Department has taken action against carriers not fulfilling their obligations. Families deserve to know their belongings are safe during a move,” said U.S. Transportation Secretary Pete Buttigieg. “The judgment announced today is a significant step in holding moving companies accountable for deceptive practices. We will continue to use our authority to protect consumers.”

FMCSA Deputy Administrator Vinn White added, “We want carriers to know that non-compliance with federal regulations can have serious consequences. We’re proud to partner with DOJ to tackle this issue.”

FMCSA also hosted a Commercial Enforcement and Consumer Protection (CECP) course to highlight consumer protection issues related to household goods transportation. The course focused on enforcement options and consumer protections available to state attorney general personnel. The CECP course builds on FMCSA’s efforts through Operation Protect Your Move, an annual nationwide initiative to target moving companies with significant consumer complaints. In 2024, FMCSA investigators conducted 60 investigations and implemented over 30 enforcement actions.

Additionally, the House Transportation and Infrastructure Committee passed a bipartisan bill in September, giving FMCSA greater enforcement authority. The bill allows the agency to impose civil penalties for violations of commercial regulations, including consumer protections for household goods, and refuse registration to applicants without proper verification.

For more information on FMCSA’s consumer protection efforts, visit www.protectyourmove.gov.

Source: Federal Motor Carrier Safety Administration (FMCSA)

https://www.fmcsa.dot.gov/newsroom/fmcsa-wins-landmark-judgement-against-moving-company

Staying Safe Online: Here are some important guidelines

Posted on by

Staying Safe Online: Here are some important guidelines that will help you protect yourself when using the internet.

Thus, it is more important than ever to be careful in the digital environment and protect ourselves from various threats that exist in the network space.  Some of the risks include hacking, phishing scams, and identity theft that can lead to the loss of personal information and even financial theft.  It is possible to avoid these and have a safe online experience if one makes use of the right habits that are discussed below.

Use Strong and Unique Passwords

As such, passwords remain the primary method of protecting one’s self in the current world.  Do not use easily identifiable information like your name, your birthday or commonly used words.  It is recommended that you should come up with a password that is not easy to guess and should be different for every account that you create in the future to include both letters (both large and small), numbers and symbols.  When handling a number of passwords, it is advisable to use a password manager – a special tool that helps you create and store strong passwords for different websites and services.

Even if the person who has signed up with your email ID or has stolen your password, he/ she still cannot access your account because the second factor for the verification requires a code which is sent to your phone.

Beware of Suspicious Links and Emails

Phishing is considered to be one of the most dangerous activities that take place on the internet.  The malicious links or attachments in form of emails, texts or ads are the common tactics used by the cyber criminals.  Do not click on just any link; always check the sender and look for symptoms like incorrect spelling, desperation or different server address.

Keep Your Devices and Software Updated

It is critical for the software to be up to date since the old one has vulnerabilities that can be easily hacked.  It is therefore important to check for updates of your operating systems, apps and antivirus software to enhance on security.  Most updates are secured by important security patches that solve the outstanding threats.

Secure Your Internet Connection

Public Wi-Fi is very useful but you should be aware of the fact that it can be dangerous because your data can be intercepted by attackers.  When using such networks you should not engage in activities that require much attention like online banking and make sure you use a VPN to enclose your connection and protect your information.

Be Mindful of What You Share Online

It is therefore important to avoid posting sensitive information on social networks as the location, phone number or even financial details put at risk.  Provide as much detail as possible but only share as much as is necessary and ensure your privacy settings are optimized.

Monitor Your Accounts Regularly

This means that you should always check your online account frequently so that if there is any activity that you did not authorize, you will be able to report it sooner.  It is advisable to set up notifications for logins, transactions or password changes to alert you when someone else is logging in or transacting from your account.

Therefore, if these practices are made a part of one’s daily routine then one can protect his/ her personal details while using the internet.  Thus, the constantly developing sphere of cyber threats requires the active work of only a knowledgeable user.

Copyright 2024 by SafePro Insurance (www.safeproins.com). All rights reserved. No part of this article may be reproduced, distributed, or transmitted in any form or by any means without prior written permission from SafePro Insurance.

Understanding Contractor Insurance: A Complete Guide for Contractors

Posted on by

Introduction

As a contractor, protecting your business is crucial. One of the most important aspects of protecting your business is having the right contractor insurance. Whether you’re just starting or you’ve been in the business for years, understanding contractor insurance can save you from unexpected financial risks. In this article, we’ll explore what contractor insurance is, why it’s important, and how you can choose the best coverage for your needs.

What is Contractor Insurance?

Contractor insurance is a type of business insurance that provides coverage for various risks contractors face in their day-to-day operations. It can include general liability insurance, workers’ compensation, professional liability, and more. Contractor insurance ensures that you are financially protected against claims of property damage, bodily injury, or accidents related to your work.

Key Coverage Areas in Contractor Insurance

  1. General Liability Insurance: This covers third-party property damage and bodily injuries that occur on the job.
  2. Workers’ Compensation: This is required in most states and covers medical expenses and lost wages for employees injured on the job.
  3. Professional Liability Insurance: Also known as Errors and Omissions (E&O), this protects contractors from claims of negligence or mistakes in their work.

Why Do Contractors Need Insurance?

Every contractor, regardless of the size of their business, needs contractor insurance. Without it, a single accident or lawsuit could financially devastate your business. Here are some of the main reasons why contractor insurance is essential:

Legal Requirements for Contractor Insurance

Many states require contractors to have a minimum level of insurance to operate legally. If you fail to meet these requirements, you could face fines, lawsuits, and the inability to secure jobs or contracts.

Risk Management and Financial Protection

Contractors face various risks, from accidents on job sites to errors in project execution. Contractor insurance provides financial protection against these risks, covering the costs of legal defense, medical bills, and even settlements if you’re found liable.

How to Choose the Right Contractor Insurance

Choosing the right contractor insurance policy depends on the nature of your work, the size of your business, and the specific risks you face. Here are some tips for selecting the best policy:

Evaluate Your Business Risks

Start by assessing the specific risks your business faces. If you work with heavy machinery or hazardous materials, you may need more comprehensive coverage. Consider the size of your business, the number of employees, and the types of projects you handle.

Compare Insurance Providers

Not all insurance providers offer the same coverage or rates. Shop around and compare quotes from multiple insurance companies to find the best policy that suits your needs and budget. Make sure to choose a provider experienced in contractor insurance.

Consider Bundling Your Policies

Many contractors can save money by bundling multiple policies (e.g., general liability, workers’ compensation, and commercial auto) with the same provider. This not only saves you money but simplifies managing your insurance coverage.

The Cost of Contractor Insurance

The cost of contractor insurance varies depending on several factors, including the type of work you do, the size of your business, and the coverage you choose. On average, contractor insurance cost can range from a few hundred to several thousand dollars annually.

Factors That Affect the Cost of Contractor Insurance

  1. Type of Work: High-risk jobs, such as roofing or demolition, typically have higher insurance premiums.
  2. Business Size: Larger businesses with more employees and bigger projects often pay more for insurance.
  3. Coverage Limits: Higher coverage limits will increase your premiums, but they also provide more protection.

Conclusion

Contractor insurance is an essential investment in the future of your business. By choosing the right coverage, you can protect your business from financial loss due to accidents, lawsuits, or other unexpected events. Whether you’re a general contractor or a specialist in a particular trade, securing the right contractor insurance policy is key to operating safely and successfully. Take the time to evaluate your needs and explore your options to ensure your business is fully protected.

Looking for Contractor Insurance?
Protect your business with comprehensive coverage from Prime Shield Insurance. Get a free quote today and ensure you’re covered for any unexpected risks. Explore our contractor insurance options tailored to your needs.

When Do You Need A Contractor General Liability?

Posted on by

A contractor general liability is useful for different construction businesses. But have you ever wondered when you should get this liability? This article explains it all.

Contractors in various specialties, such as masonry, carpentry, fencing, concrete, landscaping, flooring, HVAC, and electrical, are exposed to numerous general liability issues when they’re working on-site.

If employees and business owners don’t actively address contractor general liability problems, they may result in visitor or customer injuries, stolen or damaged equipment, and property damage.

Moreover, losses of any type can cause damage to your reputation with existing and potential customers and impact your business negatively when it comes to finances.

This article addresses two areas of contractor general liability, the first one being job site premises and operations, and the second one being products and completed operations. 

These lists include suggestions to help you manage hazards while working on a job site and prevent losses from liabilities. But know that these lists aren’t comprehensive and don’t include all potential hazards, so you’ll need to be diligent in securing all work sites.

Contractor General Liability Job Site Premises and Operations

The most common contractor general liability losses while working on a job site are slips, falls, trips, bodily injury, and property damage. So this list will help you to think about which of the following items can be applied to your next worksite.

  • Workers are skilled, experienced, and licensed (if applicable)
  • Newer employees are closely monitored by experienced workers
  • Good housekeeping is maintained throughout the premises at all times
  • Floors, hallways, and aisles are kept clear of debris
  • Spills are cleaned up immediately
  • Floors, sidewalks, and parking lots are well-lit, in good condition, and don’t have cracks or unanchored coverings
  • Stairways are in good condition, have proper handrails, and are well-lit
  • Tools and materials are neatly arranged and do not obstruct walkways
  • Tools are removed from the site at the end of each day and any tools left overnight are stored securely in a locked space
  • Equipment and materials left overnight are stored appropriately
  • Job sites left unattended by workers are properly secured and free from hazards
  • Exits from the premises are clearly marked and unobstructed
  • Access to the premises is limited to necessary personnel while operations are performed
  • Visitors or customers permitted to enter work areas are accompanied by a qualified employee at all times and are required to wear personal protective equipment when needed
  • Customers are prohibited from touching or holding tools or equipment, climbing ladders, and assisting in work performed by employees
  • Visitors and customers are informed of potential hazards and are aware that kids and pets are prohibited from entering the work site
  • Noise from machinery and tools is as limited as possible
  • Worksites are inspected regularly to identify and control hazards

Contractor General Liability Products and Completed Operations

Contractor general liability losses caused by products and completed operations can include anything from property damage to bodily injury. Common causes are failure to meet specifications or building codes, use of substandard materials, poor workmanship, maintenance, incorrect installation, repair operations, improper design, and faulty equipment. 

This list demonstrates actions that can reduce the potential for liability issues.

  • Component and raw material suppliers must meet strict quality standards
  • Incoming components, materials, and equipment are thoroughly inspected, and items that don’t meet the standards are refused
  • Shipping and receiving records are maintained so that any defective materials can be traced back to their original suppliers
  • Quality control measures are in place to make sure all work meets minimum levels of acceptability and is done competently
  • If guarantees or warranties are offered to customers, they’re in writing before the job starts
  • Local building regulations, codes, and ordinances are investigated before any installation procedures commence
  • Equipment installations follow all of the manufacturer’s instructions
  • Workers performing maintenance operations follow a procedural checklist to ensure no steps are missed
  • The business has methods set for inspecting work when it is completed
  • Debris, raw materials, tools, and other equipment are removed from the job site when work is completed, so nothing is left behind
  • Detailed customer records are kept that include all work completed along with maintenance and service intervals (if applicable)
  • Customers are provided information regarding the proper operation and maintenance of installed materials, equipment, and such.

Summing Up Contractor General Liability 

As a business owner, it’s best to have a contractor general liability for as many of these aforementioned scenarios as possible. Because you never know when a situation that warrants this liability arises.

Everything You Need to Know About Insurance Filing As A Motor Carrier

Posted on by

Have you wanted to file your insurance as a motor carrier, as a freight forwarder, or a broker but couldn’t understand how? Then this article is what you need.

Apart from applying operating authority, applicants for freight forwarder, motor carrier, and broker authorities must have specific legal processes and insurance agent documents on their files before the FMCSA issues them these authorities. 

These filings will vary, based on the registrations involved. There is a list of pre-registration forms below, and it’s followed by a description of which registrants must file those forms. 

If you’re insurance filing for the first time, then please note that first-time applicants with FMCSA need to apply using the Unified Registration System (URS) as of December 12, 2015. 

However, existing registration-holders or authority-holders may apply for authorities using the OP-series forms until a later date. The FMCSA has published a Federal Register notice on the 17th of January with more details on the suspension of the URS effectiveness date.

Furthermore, you may submit cargo insurance and liability forms directly/online through the home office of the insurance company that is furnishing the coverage. The FMCSA does not provide insurance forms’ copies.

Requirements for Insurance Filing

FormDescriptionAuthorities Subject to Filing
BMC-91 or BMC-91XPublic liability insurance (bodily injury/property damage/environmental restoration)Motor CarrierFreight Forwarder (Note: Non-vehicle operating freight forwarders may seek a waiver of this requirement)
Freight: $750,000 – $5,000,000, depending on commodities transported; $300,000 for non-hazardous freight moved only in vehicles weighing under 10,001 lbsPassengers: $5,000,000; $1,500,000 for registrants operating only vehicles with a seating capacity of 15 or fewer passengers.
BMC-34 or BMC-83Cargo insurance–$5,000 per vehicle$10,000 per occurrenceIn addition to BMC-91 or BMC-91XHousehold Goods Motor CarrierHousehold Goods Freight Forwarder
BMC-84 or BMC-85The Surety Bond amount is $75,000Trust Fund Agreement amount is $75,000Freight ForwarderBroker of Freight
BOC-3Service of Process AgentsAll Authorities
MCS-90Endorsement for Motor Carrier Policies of Insurance for Public Liability under Sections 29 and 30 of the Motor Carrier Act of 1980Hazmat Safety Permit Carriers

Insurance Filing and You 

You should be prepared to contact your agents to request the filing of the required forms immediately after obtaining your designated docket number. These filings must be received within 90 days after the FMCSA has published a public notice of intention to register you as an applicant (applicants will be notified by letter of their docket number and date of publication in the FMCSA Register).

Applicants are cautioned to ensure that the name and address of the business as set out in all pre-registration filings match with the same name and address provided in their application for operating authority filings. 

Any deviations will result in the rejection of the supplemental pre-registration filings.

Where Should I Go For My Insurance Filing?

Insurance companies are to file forms BMC-91, 91X, 34, and 84. While financial institutions need to file form BMC-85. 

Only insurers (insurance underwriters, that is), not insurance agents, and financial institutions can establish e-filer accounts to electronically file insurance forms (BMC-91,91X, 34, 84, 85, and others). These filer accounts are exclusively designated for financial institutions and insurance underwriters.

You can visit this link to see a template at the end of the page to set up your electronic filing account. It has been specifically designed to efficiently gather all necessary information required for the establishment of your account.

It’s suggested that the completed template be copied and pasted onto your company letterhead and attached as a PDF to be submitted to the Financial Responsibility Filings Division. Application documents will only be accepted via postal mail or email at FMSCAInsurance@dot.gov, using an official company e-mail address. 

Please ensure that all fields in the provided template are completed accurately and comprehensively. Failure to provide complete information may result in delays in processing your account set-up request. Once the required information is completed and gathered, you can submit e-filer applications to FMCSAInsurance@dot.gov.

Process Agent Designation and Insurance Filing

Public liability Insurance (Form BMC-91 or BMC 91X) and cargo insurance forms (Form BMC-34 or BMC83) are to be submitted electronically by a registered electronic filer (a representative of a surety company, insurance company, or a financial institution.) FMCSA does not furnish copies of these insurance forms.

This is the link to the site that has the forms for process agents and insurance.

Summing Insurance Filing Up

By following the aforementioned steps, you;ll able to get your form(s) submitted to the FMCSA in the required manner, but they’ll also be read and pursued by the FMCSA.

What is A Performance Bond?

Posted on by

This article explains in detail about what is a performance bond and what are the roles of all three major parties in it. 

A construction job of any kind requires a performance bond. In essence, they provide an assurance that the contractor carrying out the work will honour their contractual duties to the project’s owner or general contractor. In the end, this ensures that the work is completed according to schedule.

A performance bond involves these three parties:

  • The contractor who will do the job and furnish the bond is the principal.
  • The project owner or general contractor is the obligee.
  • And the surety: This is the business that provides the performance bond, which assures the contractor’s work.

It’s simple to mix together performance bonds and insurance. After all, surety or bond companies—also known as insurance companies—are the ones who formally issue performance bonds. 

Three Important Ways Performance Bonds and Insurance Differ

It’s simple to mix together performance bonds and insurance. After all, through insurance brokers, insurance companies—also known as surety or bond companies—issue performance bonds. Surety agents are those organizations that focus on surety.

Performance bonds and the majority of insurance products differ in three key ways:

1. There is no immediate gain for the contractor (principal) submitting the performance bond application. Rather, the principal is employed by a third party (obligee), such as an owner or general contractor, for whom the bond offers benefits.

2. Surety businesses underwrite and price performance bonds with the intention of avoiding losses in theory. Consequently, surety firms are able to complete the task.

3. Contractors are required by surety firms to compensate and cover the surety for any damages resulting from the performance bonds. When compared to the majority of insurance products, such as workers’ compensation and general liability, this is a significant difference. 

A contractor using those items is exempt from having to pay back the insurance company for a covered loss. That would negate the insurance’s purpose. That’s not the case with surety, which functions more like a banking credit extension. 

How to Apply for and What Are the Requirements for Performance Bonds

Surety firms will examine various financial records and features of your business expertise in order to grant a performance bond. The size of the performance bonds you require and the total number of bonds you will have outstanding at any given moment will determine the requirements.

Bonds under $750k: These are frequently available with a straightforward one- or two-page application, depending on the company’s excellent credit history and prior completion of projects of a comparable scale.

Bonds worth more than $750K to $2 million will need to provide financial accounts for both the business and the owners. If the financials are accurate and in order, they are typically acceptable when first created.

Where to Get a Performance Surety Bond for a Contractor

Choosing a performance bond provider can be one of the most significant decisions a contractor makes. Construction performance bond providers are numerous, but their levels of experience and capacity to assist contractors in reaching their objectives for bonding capacity and business expansion differ significantly: 

A Representative for Insurance

Remember that insurance agents aren’t surety experts, even if they can seem like a suitable alternative if you need a performance bond—especially if you’ve worked with an agent in the past. 

Since they don’t handle bonds exclusively, they don’t have the same calibre of relationships or access to surety businesses, nor do they have the knowledge or experience with California surety bonds that would facilitate a smoother bonding procedure. 

They may lack the means to generate prospects or the knowledge necessary to pair a contractor with the ideal assurance provider because they don’t have these industry relationships. 

An Expert in Surety

An specialist who focuses only on surety bonds is known as a surety agent. Regardless of your company’s stage, they may use their expertise to make the bonding process far more seamless by anticipating future developments. 

Surety agents get access to exclusive programs and business connections because they exclusively deal with surety bonds. Additionally, they establish strong bonds with surety suppliers, which better enables them to match your requirements with the ideal assurance firm. 

Their knowledge extends beyond the bonding procedure; they also understand how to properly organize your money to expand your company’s bonding capacity.  

Summing Performance Bonds Up

In conclusion, performance bonds are a crucial tool in the construction and contracting industries, providing a financial safeguard that ensures projects are completed as per the agreed terms. By reducing the risk of non-performance and financial loss, they protect project owners and investors, creating trust and stability in contractual relationships.

What is A Contractor’s Liability Insurance?

Posted on by

A contractor’s liability insurance is a safety net for people who work in construction. It is a specialized form of insurance against different risks and liabilities that contractors face, like property damage, bodily injury, and even legal fees arising from lawsuits. This article explains it in detail.

What is This Insurance About and What Does it Do?

A contractor’s liability insurance (CLI) covers building professionals and contractors in case of construction errors. It is purchased by contractors who design and build construction projects. 

It covers both mistakes made by the contractor and third parties hired by the contractor. These third parties may be needed in case of specialized work, like drywalling, electric work, plumbing, and such.

Not all contractors provide all kinds of construction-related services. Usually, only larger contractors offer them in-house. Yet they’re also exposed to more risks, which this insurance protects them from. 

Why is A Contractor’s Liability Insurance Needed?

It covers risks that aren’t covered by a General Commercial Liability insurance (CGL). A CGL doesn’t include professional liability exclusions, which is why a contractor’s liability insurance can come in handy. 

What is Covered Under A CLI?

Many construction-related activities can be included in a list that’s in the policy documentation. Or it may be tailored to the needs of the contractor purchasing it. Some policies include a list of undertakings that aren’t a part of coverage. 

Contractors can buy a standing contractor’s liability insurance that covers everything that the contractor does. They may also choose to purchase a policy that covers particular projects with detailed time frames.

CLI vs Builders’ Risk Coverage

Both of these types of insurance cover a similar set of conditions, entities involved, and types of loss in a building project. Although, the CLU is usually taken out by the contractor. While builders’ risk is taken out by the project’s owner.

Also, the CLI can be taken out for building improvement projects, yet it may not be available for a new project without any existing structure. Simultaneously, builders’ risk coverage can secure projects that don’t have an existing structure. 

Summing Up Contractor’s Liability Insurance

Contractors liability insurance provides coverage for both third-party hires and contractors, like designers, architects, and engineers. It helps in case of errors and mistakes made on the job, and other losses incurred during a building project.

Subcontractor’s Warranty Endorsement

Posted on by

Those who are contractors, construction companies, maintenance companies, or other companies that use subcontractors may encounter “Subcontractors’ Warranty Endorsement” on their Commercial General Liability policies. This endorsement requires contractors to obtain additional insured status on the CGL policy of their subcontractors and to make their policies secondary to their subcontractor’s. In addition, contractors may face significant consequences if they do not meet the endorsement’s requirements.

The language of the “Subcontractors’ Warranty Endorsement” can differ among insurance providers, but the main terms of an endorsement mostly remain the same. A subcontractor’s policy must list the contractor as an additional insured and as a requirement for coverage for any insured under this policy the insured must ensure that all subcontractors maintain Commercial General Liability insurance from a company with a “A” rating and minimum liability limits of  $1,000,000 per occurrence and $2,000,000 general aggregate and  $2,000,000 products and completed operations aggregate. Additionally, the insured must be listed as an additional insured on all such subcontractors’ commercial general liability policies.

The endorsement may also require the contractor to secure an indemnity agreement from the subcontractor in addition to having additional insured status on the subcontractor’s policy.