We all have clients who may think applying for environmental coverage is a lengthy and involved process. Or they may not even think they have an exposure at all. Here are some ways to handle these tough conversations:
Insured: I have my GL on a Business Owners Policy (BOP) so I don’t need CGL.
Response: The General Liability protection in the BOP policy insures against claims for arising out of your business activities at premises you own or control. This type of limited GL doesn’t provide coverage for your operations at a jobsite.
Insured: I’ve never had a claim. I’ll take my chances.
Response: Things happen, no matter how careful you are or how qualified or well trained the staff. Since the policy provides defense cost, whether you’ve done anything negligent or are just being accused, defense expenses alone could bankrupt a company. With proper insurance, the carrier will handle the claim while you continue to run your business.
Insured: I don’t need the coverage/I’m not required to carry it.
Response: More often than not, construction and contracting projects are being required to carry both GL and CPL by contract. The project owners are requiring this coverage before they will hire a contractor to do the work. By having an insurance policy in place with proper coverage, it may give you the advantage in winning the job. It makes your business more competitive and shows projects owners that you are a prudent business owner, having considered the value to insurance before it was required.
Insured: I sub most of my work.
Response: The CGL/CPL policy form typically provides coverage for the negligent acts of your subcontractors (work performed by you or on your behalf). If you hire a subcontractor who doesn’t have their own insurance and who failed to list you as an additional insured on their policy, your policy will be the one to respond. So if the subcontractor you hired to drill a monitoring well accidentally hits an underground utility line and is sued by the utility company, your policy will respond if your subcontractor has no insurance or too little insurance.
Insured: It’s too expensive.
Response: Insurance policies aren’t “one size fits all”. They can be tailored to meet the needs of you business. Coverage and pricing is based on the type of services offered as well as the gross revenues estimated for the year. Pricing may be adjusted upward or downward, depending on your needs but most policies start at $2,500 MP. Deductibles also affect the premiums.
Insured: Another carrier is cheaper.
Response: As with insurance coverage and policies, no two carriers are the same. It’s important not only to compare price, which is important, but to also compare the carriers by reputation or financial stability, the policy forms, enhancements included/available for an additional premium, claims handling and service. If your client is at a jobsite and can’t get to work without an AI or if they need pricing for an increased limits bid, strong service may make the difference in a having satisfied insured.
For more information, feel free to contact us or call (800) 596-2156.