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Negotiating Terms With Potental Commercial Client

 
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Old 10-09-2014, 09:55 AM   #1
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Negotiating Terms With Potental Commercial Client


I'm in process of trying to close a deal on 5 figure repair project on a commercial building. I'm dealing with the President of the company. He sent me an email late yesterday with a revised scope of work & insurance requirements for contractors working on their property or jobsites.

The revised scope of work is fine. The major sticking points for me are the insurance requirements specifically this:


Additional Insureds:

John Doe ***xx Ltd. & it's employees & agents
Michael Doe (President of company)
Bertha Doe (Have no idea who this is)
The Doe Limited Partnership (have no idea who this is)

& on top of all of that they want a "Waiver of Subrogation"


I'm looking for opinions on how to proceed with this.
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Old 10-09-2014, 10:57 AM   #2
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Re: Negotiating Terms With Potental Commercial Client


The additional insured for "John Doe ***xx Ltd. & it's employees & agents" sounds pretty normal as does the "Waiver of Subrogation".

Don't get the other additional insureds.

May be in your best interest to get a consult with an attorney.

At the very least you will get a good insight into this stuff.

Good Luck...

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Old 10-09-2014, 11:23 AM   #3
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Re: Negotiating Terms With Potental Commercial Client


Typically I have to provide a clearance cert for the company, then additionally insured would be the building under construction not individual people?

Waiver is normal.

Just forward the email to your agent, that's what I do, let them deal with it.
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Old 10-09-2014, 11:30 AM   #4
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Re: Negotiating Terms With Potental Commercial Client


I've never had to ask for one with personal names on it, just the company.

+1 on sending it to your insurance agent.
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Old 10-09-2014, 11:31 AM   #5
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Re: Negotiating Terms With Potental Commercial Client


That all seems pretty normal... I'm sure John and Bertha and the partnership are agents of the company and/or at some level are holding companies for aspects of the project. I wouldn't worry too much about it.

I am not a lawyer and this is only my opinion based on my experience in the industry. This opinion is not to be construed as legal advise.
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Old 10-09-2014, 11:39 AM   #6
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Re: Negotiating Terms With Potental Commercial Client


Quote:
Originally Posted by griz View Post
Don't get the other additional insureds.
Yes, I don't get that either. I've done plenty of these type of projects over the decades & this is the first time I've seen something like this.


Quote:
Waiver is normal
Again, not my first rodeo & this is the first time I've run across this.

Why would anyone agree to sign a "Waiver of Subrogation" which then puts them in breach of contract with their insurance companies????
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Last edited by Brickie; 10-09-2014 at 11:50 AM.
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Old 10-09-2014, 01:45 PM   #7
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Re: Negotiating Terms With Potental Commercial Client


Ask your agent, including about the waiver, which is probably fine.

Ask your agent to explain the waiver of subrogation to you. I've long since forgotten the details, but the lesson I retained is that it's not the "why on earth would my insurer allow me to sign something like that" situation that it seems to be at first glance.
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Old 10-09-2014, 06:21 PM   #8
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Re: Negotiating Terms With Potental Commercial Client


Sometimes we are required to list the lender and any involved parties in the loan as additionally insured.

Most large GC's require waivers of subrogation. If you don't want to agree to it, don't. You probably won't get the job, but you have to stand for what you feel is right for your business.

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