AboutDenise Expertise I am a licensed Property/Casualty agent in the state of Wisconsin, a Certified Insurance Counselor and a Certified Insurance Service Representive, with a 15+ year background in personal insurance underwriting. I am currently working in the Homeowners and Auto field, and was licensed in Life and Health insurance years ago. I can provide input if you will give me a "one paragraph what`s the story", however depending on the situation, do note that as policy forms and endorsements vary by the state, the information may be general and educational in nature.
Question My question is about a "subcontractor" exposure code under a Commercial General Liability policy. At the beginning of the year, we estimated around $500,000 of gross payments to subcontractors. We had several buildings built during the policy year, so we had gross payments of around $5,000,000 to subcontractors. Even if I have Certificates of Insurance from all of the subs evidencincing that they have liability coverage, do I still have to pay premium on the additional $4.5MM? (as opposed to Workers Comp...I was thinking that if I had Certificates of Insurance evidencing WC coverage, that added NO additional exposure to the WC policy).
Answer Hi Calvin-
The issue with subcontractors is that even though you may have certificates of insurance, too often the GL carrier ends up providing coverage to them, so I'm afraid that they will want to charge you the 4.5MM difference. When I worked in the commercial insurance field, I wasn't an auditor, but I'm pretty sure they will find in the audit that the additional charge is correct. Sorry! :) Denise
