Does Your Contractor have the Correct COI?
As a property owner or facility manger, you purchase insurance to protect your assets from claims and law suits in the event of an accident on your property. Do you have the same protection from your snow contractor?
What is a COI?
A certificate of insurance is a one pager that provides policy details on the contractor’s liability insurancecoverage, verifying that they have the professional liability insurance, general liability insurance, Workman’s Comp & Auto Coverage or business owner’s policy they claim to have. The details it shares include the types and limits of coverage,the issuing insurancecompany, policy number, the namedinsured, and the policy’s effective dates. What the cover page does not show you are any exclusions such as “snow” unless specified with endorsem*nts. More insurance companies exclude snow from general liability than you would think.
Why do you need a COI Snow Endorsem*nt?
Without the snow coverage endorsem*nt in place, and if a claim is filed up to three years, you could be left out in the cold. Here’s an example:
If a pedestrian slips and falls on an icy parking lot they could sue the building owner. If the building owner has contracted with a snow removal contractor then they will assume the liability.However, if the snow removal contractor does not have a Snow Coverage endorsem*nt, the building owner will have to assume the additional expenses causing financial stress and possible cancellation of insurance at time of renewal.
What should you look for in a snow contractor’s insurance policy?
1.Verify that your selectedcontractors insurance includes snowplowing operations
2. Type of snow endorsem*nt necessary:
Ongoing Operations -covers liability only when the snow contractor is actively onsite. Completed Operations (CG2292)- is coverage to protect the property owner after the snow contractor has completed snow operations and has left the site. For example- two days after a storm and someone slips on a small patch of ice even though no snow precipitation has occurred in 2 days.
So remember, getting the cheapest snow contractor may appear to be saving you money, but in the event of a claim, it could cost you thousands of additional dollars and jeopardize the company’s finances. Be sure to verify your contractors insurance has a snow coverage endorsem*nt to protect you from financial ruin and help you sleep better at night.
Have a safe snow season.
