Boots on the Ground

Subcontractors, The Heartbeat of Construction

Tag: subcontracting

What side are they on?

No doubt that Risk Management is important in the construction industry. The cost of accidents and improper installation can be immense and can threaten the very existence of a company. But with insurance companies, it is no longer risk management, but risk avoidance.

Have you ever noticed that the same insurance companies that advise General Contractors to add all these additional insureds, waivers of subrogation and other restrictions are the ones telling Subcontractors not to agree to them? In fact, insurance companies are starting to require subcontractors to obtain addenda to subcontracts regarding insurance coverage before issuing a certificate of insurance.

Here are the latest ones I have come across in a contract from a General Contractor that our insurance company absolutely will not bend on.

·         Requiring the general contractor, architect and engineer to be SCHEDULED Additional Insureds. The insurance company insists they are all covered by blanket coverage when required by the contract.

·         No Deductibles. The general contract requires all policies to be no deductible on CGL and WC. How many subcontractors can afford a no deductible policy these days? Our insurance carrier does not even write them.

So to answer the question of what side the insurance companies are on, the answer is THEIR OWN SIDE.

In The Beginning

Art-1iwMy name is Art Rouse. I have been employed by Binswanger Glass for 39+ years. I have worked as a sales representative, office/operations manager, branch manager and now as the area administrative manager. I have been involved in all aspects of subcontracting, from estimating to project management. My current job is to assist Binswanger locations in North Carolina and western Virginia with the administrative side of subcontracting and requires that I stay current with legal issues that affect subcontractors.

I will be blogging for the North Carolina Subcontractors Alliance. This is the former Charlotte Chapter of the American Subcontractors Association of the Carolinas. In a special meeting of the membership in June 2013, a majority of the membership voted to disassociate itself from ASAC and focus on legislation and construction issues at the state and local level.

The plan is to link this blog to the NCSA website and online newsletter. Since the organization will be using the WordPress templates for the website and newsletter, I have been asked to do my blogging on WordPress as well. My original posts were done on my personal blog on BlogSpot, so my next few postings will be re-posts from BlogSpot.

I hope you find these posts helpful and relevant. I will try to keep them interesting and timely. Comments are always appreciated.