Are we covered

[satcom]

Are we covered if we are the EC's on a project like this http://ww2.ajcmobile.com/autojuice/...ation-world/fire-burns-through-nj-794698.html. Would we have the coverage to cover all the loss and be able to stay in business?

 

[hurk27]

This is a question you should be asking your insurance carrier, liability limits are different in every part of the country and most contractors only get the minimum, their problem is they find out to late after a disaster, and loose everything, depending on how the company is set up such as sole proprietor, LLC, INC, most run S-corp which offers the good protection against coming after your personal money, but if you have enough family or those you can trust breaking up the company in separate entities like putting the trucks in one company, buildings in another, tools in another, office equipment in another, and have just the licenses in the main name, and lease the equipment back to the main company not only gives you some write offs but also when they come to sue they won't get much. a good tax attorney can advise you on this, but as far a insurance goes, if you have the case flow, always get the amount that will cover the jobs you plan on doing, an apartment building like that could go easily for 20 million + in damages and while here we are only required to have 2 million in liability, but most banks that finance these large jobs will require you to carry the bonding and insurance that will cover a loss like that in that story, as soon as I have more cash flow I plain on increasing my liability to 5 million because some of the houses and business I work in will exceed my liability.

Also ask your insurance carrier about personal liability, because in some states you can be sued separately as the person doing the work, if you make a grave mistake such as hooking up a 120 volt heater to 240 volts and it burns down a house not only can you be found criminally negligent, if there is a loss of human support of a family member you can be personally sued for this liability, since you as a person did the work.

 

[George Stolz]

Boy, seeing that photo sure makes me apprehensive about that heater I left running in the gang-box this afternoon to keep our batteries charged and warm.

 

[ptonsparky]

Suppose someone did not pay correct "insurance" agent on time?

 

[cadpoint]

This is a big error of the building codes to drop or dumb down what's required between structures; IE fire walls don't pertrude above the roof lines, and what amounts to a Fire Wall is not followed per design or ignored by the trades!
JMO

 

[renosteinke]

We had a similar fire in Reno, on 07/30/2009. Look it up: 22 of 34 buildings were COMPLETELY levelled. The source of the arson? Your guess is as good as mine.

The timing of the fire was critical; the studs and stucco was up, but none of the rock was hung. And, to correct an error, fire resistance standards DO call for fire walls to extend above the roof in many types of construction; you can probably find rooflines with little 24" walls every so often as you drive around town. Still, the fire was set right when the complex was most vulnerable.

There's a reason fires are called LOSSES. Maybe the GC has insurance, and maybe you'll someday collect. Maybe you can collect from your insurance. It's still going to be a loss, though, once you account for the replacement of tools, paying for materials (before insurance pays), and lost productive time. Every tradesman on these jobs is going to be missing a few paychecks.

Just for entertainment, here are a few things that have caused such fires in the past:
1) Development was suddenly complicated by the property being designated 'historic' and -voila!- a fire breaks out;
2) Painters' clean-up materials (rags with laquer thinner) self-ignite;
3) Environmentalist / anti-growth activists (The "Earth Liberation Front" has done this sort of thing);
4) Workers facing lay-off as the job finishes 'create' further demand for their services;
5) Camping vagrants let a campfire get out of control;
6) Someone with a grudge takes matters into their own hands;
7) Criminals set a fire to hide evidence of their other crime; and,
8) Someone wanted to deliver a message.

 

[tx2step]

You'd need "Builder's Risk" insurance

You'd need "Builder's Risk" insurance

Are we covered if we are the EC's on a project like this http://ww2.ajcmobile.com/autojuice/...ation-world/fire-burns-through-nj-794698.html. Would we have the coverage to cover all the loss and be able to stay in business?

You'd need to be covered by a "Builder's Risk" insurance policy. Either one you took out yourself, or be one of the named "Additional Insured" on a policy taken out by the GC. The owners of most large projects require that the GC provide a Builder's Risk policy so their project will be completed in the event of a fire or other significant damage during construction. As a sub, you need to be named in the policy as an additional insured to be bulletproof. You can also take out builders risk coverage yourself, especially if you have a separate project. Builders Risk coverage will pay you to get your work rebuilt to where it was before disaster struck. If you have a $50,000 electrical job, you can get a policy for a few hundred $. It's worth having.

 

[ksmith846]

We had a similar fire in Reno, on 07/30/2009. Look it up: 22 of 34 buildings were COMPLETELY levelled. The source of the arson? Your guess is as good as mine.

The timing of the fire was critical; the studs and stucco was up, but none of the rock was hung. And, to correct an error, fire resistance standards DO call for fire walls to extend above the roof in many types of construction; you can probably find rooflines with little 24" walls every so often as you drive around town. Still, the fire was set right when the complex was most vulnerable.

There's a reason fires are called LOSSES. Maybe the GC has insurance, and maybe you'll someday collect. Maybe you can collect from your insurance. It's still going to be a loss, though, once you account for the replacement of tools, paying for materials (before insurance pays), and lost productive time. Every tradesman on these jobs is going to be missing a few paychecks.

Just for entertainment, here are a few things that have caused such fires in the past:
1) Development was suddenly complicated by the property being designated 'historic' and -voila!- a fire breaks out;
2) Painters' clean-up materials (rags with laquer thinner) self-ignite;
3) Environmentalist / anti-growth activists (The "Earth Liberation Front" has done this sort of thing);
4) Workers facing lay-off as the job finishes 'create' further demand for their services;
5) Camping vagrants let a campfire get out of control;
6) Someone with a grudge takes matters into their own hands;
7) Criminals set a fire to hide evidence of their other crime; and,
8) Someone wanted to deliver a message.

Or security guard fell asleep with a lit cigarette in his/her hand that night.....

 

[brantmacga]

satcom is not asking the forum if his company is covered. . . . he knows what he is doing.

. . . he's telling you to make sure you know what your current policy would pay for so you don't go belly up if an accident were to occur.

 

[satcom]

satcom is not asking the forum if his company is covered. . . . he knows what he is doing.

. . . he's telling you to make sure you know what your current policy would pay for so you don't go belly up if an accident were to occur.

Yes, a reminder to check your coverages and exposures.

 

[GUNNING]

Roofer collection agent.

Roofer collection agent.

My guess was the roofer got stiffed.

Its so evenly on fire.

My guess, it would be the property owners insurance. Then their insurance carrier would determine fault and send Guido Esq. to collect.

 

[Chamuit]

When I have done "larger" jobs I have checked with my Insurance Rep. Told 'em what's going on and the money involved. Hopefully, they advised me correctly.

 

[cowboyjwc]

We had a similar fire in Reno, on 07/30/2009. Look it up: 22 of 34 buildings were COMPLETELY levelled. The source of the arson? Your guess is as good as mine.

The timing of the fire was critical; the studs and stucco was up, but none of the rock was hung. And, to correct an error, fire resistance standards DO call for fire walls to extend above the roof in many types of construction; you can probably find rooflines with little 24" walls every so often as you drive around town. Still, the fire was set right when the complex was most vulnerable.

There's a reason fires are called LOSSES. Maybe the GC has insurance, and maybe you'll someday collect. Maybe you can collect from your insurance. It's still going to be a loss, though, once you account for the replacement of tools, paying for materials (before insurance pays), and lost productive time. Every tradesman on these jobs is going to be missing a few paychecks.

Just for entertainment, here are a few things that have caused such fires in the past:
1) Development was suddenly complicated by the property being designated 'historic' and -voila!- a fire breaks out;
2) Painters' clean-up materials (rags with laquer thinner) self-ignite;
3) Environmentalist / anti-growth activists (The "Earth Liberation Front" has done this sort of thing);
4) Workers facing lay-off as the job finishes 'create' further demand for their services;
5) Camping vagrants let a campfire get out of control;
6) Someone with a grudge takes matters into their own hands;
7) Criminals set a fire to hide evidence of their other crime; and,
8) Someone wanted to deliver a message.

9) plumbers soldering