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Los Angeles, CA 90067
Insurance Coverage Issues –Critical for all Property, Business Owners and Contractors
While you pay an insurance premium, Insurance is essentially free money. The largest litigation expenses is usually the cost of hiring a lawyer and the payment of related court costs. Many cases settle for less money than what you will pay the lawyer to arrive at the settlement or to win the case!
Many people are afraid that if they have insurance then the Plaintiff or Clamant will be more likely to sue you. If someone wants to sue you they will sue no matter what. Get insurance, then buy additional insurance!
Common Contractor Insurance Endorsement Issues
Endorsements to insurance policies either add or remove coverage. Contractors need to be cognizant of the following common endorsements or exclusions on Contractors’ and Subcontractors’ Liability Insurance policies which may unintentionally result in LOSS of the general contractor’s insurance coverage:
Endorsement CSGL 00016 00 08 16 - “Subcontractor’s Warranty Endorsement”, requires all subcontractors to have the same amount of insurance as the General Contractor. Also, all subcontractors must name the General Contractor as an “Additional Insured” on the sub’s insurance policy, and the contract with the subcontractor “hold harmless” the prime contractor’s company and the property owner against any claim caused by the subcontractors’ work.
Endorsement CSGL 00044 00 01 17, the “Automatic Additional Insured – Owners, Lessees, or Contractors, Scheduled Person or Organization” provides that client or other person who has a contract requiring it to be added as an “additional insured” under the Contractor’s insurance policy, is automatically made an “additional insureds”.
Endorsement CSGL 00045 00 01 17 also automatically makes a person who should be added as an additional insured after the job is completed, added to the contractor’s insurance policy.
Endorsement CSGL 00017 00 08 16, “Amended Definition of Suit Endorsement”, limits insurance coverage only to defense of to actual lawsuits or arbitration proceedings and can be used to not pay for a lawyer to defend a contractor in a pre-lawsuit mediations.
Endorsement CSGL 00206 00 08 16 “Earth Movement Exclusion” provides no coverage for damages caused by any landslide, mudflow, subsidence, erosion, or the sinking, settling, slipping, caving in, falling or other movement of land or earth, even if such movement is combined with any other cause, such as water leaks, flooding, rain. This potentially is a very damaging exclulsion.
Condominiumexclusions are in endorsement CSGL 00237 00 0816 (among others) excluding coverage for any renovation, remodeling or structural repairs) for new condominium or cooperative housing projects. Condominium or Cooperative Conversion Exclusion, number CSGL 00223 00 08 16 excludes coverage for work on a condo conversion.
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