At Herlihy Insurance Group we know contractors. What that means to you the contractor is that we have the experience, expertise and insurance markets to deliver your contractor insurance program with on time and on budget for your business. Whether you are an individual contractor or a growing firm with a few hundred employees our construction specialists will work with you to design the appropriate insurance protection for your business.
Coverage
General Liability: This provides coverage if you are accused of causing bodily injury or property damage from your work on a project. If you are sued, this important coverage will pay for an attorney to defend you and pay any settlement or judgement against you subject to your policy limits.
Commercial Automobile: You are required by law in most States to purchase an auto insurance policy if you own or lease a vehicle that is being operated on any public street or highway. This policy should also cover any vehicle that is not owned by your company but used in the scope of your business – this coverage is called Non-Owned & Hired Auto Liability coverage.
Workers Compensation: You are required by law in most States to purchase a Workers Compensation Policy if you hire any employees. We further suggest you purchase a Workers Compensation policy if you hire any subcontractors. Workers Compensation pays medical expenses, disability benefits and death benefits for any injured worker.
Commercial Umbrella: This policy allows you to increase your Liability coverage above $1,000,000 for any potential claim. You may decide what umbrella limit to purchase based upon your assets at risk and any contractual requirements. An Umbrella Policy typically goes over the General Liability Policy, Automobile Policy and the Workers Compensation Policy (aka the Primary Policies). These Primary Policies would each require a minimum limit of $1,000,000.
Builders Risk: This is a Property Policy that covers a building while it is under construction. It will cover the building, the materials stored on site, the materials in transit or the materials while they are stored at an off site storage facility. This policy is typically purchased by the property owner.
Group Health Insurance: If your company offers Health Insurance to your employees, a Group Health Insurance Plan could provide a Health Insurance plan to any employee and any dependents of an employee.
Bonds: This is a financial guarantee that a project will be completed based upon the agreed upon contract price. A Project Owner or a City, Town or State would typically require a bond from the Construction Company. Typical bonds include Performance Bond, Payment Bond and a Street Opening Bonding.
Pollution: This is a coverage typically excluded or limited within a general liability policy. You can purchase a limited coverage called “Jobsite Pollution” or a more complete policy called a Contractors Pollution Policy that will cover most pollution claims including mold claims. This is a common coverage that is missing in most Contractors Insurance Programs.
Contractor’s Equipment: This coverage protects your large mobile equipment, smaller non-mobile equipment, and equipment you rent, lease or borrow while it is in transit, at a jobsite or in your possession.
Miscellaneous Tools/Equipment: This covers your small tools while they are away from your office or garage. Typically any one tool or piece of equipment valued under $2,500 can be covered as Miscellaneous Tools/Equipment.
Installation Floater: This covers any materials that will be installed while they are at a jobsite, at a temporary storage facility or while in transit.
Workers Compensation Construction Classification Credit: This is a credit available to all Contractors who have a certain class code as defined by the Workers Compensation Bureau of MA. If the average payroll for your employees is $30 per hour or greater, you may be eligible for this credit on your Workers Compensation Policy.
Owner Controlled Insurance Program (OCIP/Wrap Up Policy): This is for larger Multi-Million Dollar Projects where the Project Owner or the General Contractor provides the insurance for all subcontractors for a designated project. The project owner feels they can provide the insurance for a designated project at a lower cost then relying on each subcontractor’s policies.
Loss of Business Income within the Auto Policy: If a company has a specialized truck on their commercial auto policy, this coverage allows you to collect the Loss of Income because this specialized truck was damaged and not able to be used for a period of time. Such specialized trucks could be Rubbish Removal Truck, Water Well Drilling Trucks, Bucket Trucks, Cement Trucks etc.
Additional Insured: This can be requested by a property owner or another contractor or business that hires your company. The purpose of this coverage is for the property owner or the contractor to use your insurance first when a claim comes up regarding your work.
Waiver of Subrogation: This can be requested by a property owner or another contractor that hires your company. If your insurance policy pays a claim, the Waiver of Subrogation provision means your insurance company will not seek to be reimbursed by a property owner or another contractor that hired your company.
Per Project Aggregate: This means each project you work on has the Aggregate Limit on your policy. Most General Liability Policies have a $2,000,000 Aggregate but it could be different. This is a positive feature for your company.
Employment Practices Liability Insurance (EPLI): If you are sued by an employee or a 3rd party for discrimination, wrongful termination, failure to hire or sexual harassment type claims, this coverage will pay for your legal defense and any settlement or judgement against you.
What is a Street Opening Bond?
A City or Town will require this bond if you need to excavate into a street. This bond is typically a $5,000 – $10,000 Limit and guarantees the City or Town that the road will be replaced by your company as required by them.
What is a Performance & Payment Bond?
This will be required by a Property Owner or a General Contractor that will guarantee you complete a project at the agreed upon amount of the contract.
What is an Audit?
This will occur after a policy expires and determines the actual payroll or sales during the policy period. Based upon the final audit, a policyholder could receive money back or owe additional money to the insurance company. A General Liability and a Workers Compensation Policy typically require an Audit on an annual basis.
Do I need to complete an Audit every year?
Yes, the insurance company will notify you when you need to complete an audit for a certain policy.
Why is a company asking to be listed as an Additional Insured?
This request will come from a Property Owner or a Contractor that hires your company. If you cause a claim, the Property Owner or Contractor wants to use your insurance before he uses his own insurance.
What is Waiver of Subrogation?
This request will come from a Property Owner or a Contractor that hire your company. If your insurance policy pays a claim, the Waiver of Subrogation provision means your insurance company will not seek to be reimbursed by a property owner or another contractor that hired your company.
How is overtime calculated in an Audit?
When your policy is based upon Payroll, you only pay the straight time regardless of the number of hours an employee works. The extra OT pay, typically the ½ of straight pay, can be deducted from an audit.
What is a Certificate of Insurance?
This can be produced from your insurance agent or company and is given to someone to verify your company has insurance during a given period of time. This request will typically come from a Property Owner or a Contractor that hires your company.
Can I transfer a plate from one truck to another truck?
If a company sells a truck or trailer, you can legally put the plate onto a new truck/trailer for up to 7 days. The plate transfer to the new trucks needs to be completed at the RMV within 7 days after a company sells a truck or trailer.
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