Insurance Requirements

Pro Line

We are currently bidding a project in NV which involves framing a total of 17 semi-custom homes (not listed as a Track). The General Contractor on the job does not have a Wrap-up policy in place and requires that as a subcontractor we list their company, as well as their bank, as "additionally insured" on our current General Liability policy which is $1,000,000 coverage. Is this a normal practice or just a way of this General Contractor trying to get away with not paying for the insurance out of their pocket? Is this something that we should find out additional insurance cost for and include in our bid? Thank you in advance for any information provided.

K_Tile

Every GC that I work for in my area requires the same thing.

Bob Kovacs

You're confusing two issues. A wrap-up is a policy bought by the GC that covers him and you- if one was in place, you wouldn't need to provide insurance for the job at all. The "additional insured" clause he'sasking to have added to your policy doesn't cover work that he does- it just identifies him as an insured party if your work or negligence results in a claim. He's still got to have his own GL policy.

I'm actually surprised that you're confused by this- wrap policies aren't usually used until projects get up to aroun $5 million, so I've yet to find a residential sub who's even aware of what they are.

Bob