answersLogoWhite
Commercial Insurance
Liability Insurance
Professional Liability Insurance

What are the implications of having a Contractual Liability Limitation endorsement - CG2139 - on a GL policy for a contractor?

116117118

Top Answer
User Avatar
Wiki User
2007-06-12 22:51:48
2007-06-12 22:51:48

Hi Deborah here, I am insurance broker with the CRIS designation specializing in contractors needs. I have a client who has had that same situation, here is the advise: The CG2139redefines the ‘Insured Contract’ to remove it’s f. point (page 13 of 16 on ISO CG0001 1001 .. is the version I have here handy.. that states an ‘Insured Contract’ is points a through f. ) Here, the f. point is basically a contract a sub would sign to work for a GC & it would include a hold harmless/indemnity agreement for tort and operations coverage. This hold harmless agreement would be worthless unless the sub is independently wealthy as his insurance company would not defend or indemnify or anything. So it can be bad for subcontractors to have this endorsement but worse for the GC’s if they were to enter into a normal business contract w/hold harmless et al with a sub who has the cg2139. Subcontractors with this endorsement need to work for GC’s that simply want to be named as additional insured on the subs’ policy. If there is no contract and the GC is named additional insured on the subs’ policy, that should be sufficient for the GC to be covered for operations and tort of the sub by the subs insurance company. If I have a client with the cg2139 in a GL quote, I just make sure to ask them if they are going to be signing a contract with a GC/developer et al and/or to let me know if they plan on it at any time in the future. If they say they won't enter into any contracts with a hold harmlessthen the cg2139 is irrelevant and being on the policy/quote is immaterial. I think insurance company’s issue this endorsement to limit the scope of work a contractor can do.They want to be sure it knows the entities it would be indemnifying ie AI endt cg2010 or equivalent. They don’t want their ‘little’ contractors getting out there and playing with the big kids without permission. ~ dmc 6-12-07 previously suggested by someone else: I suggest you to go the IIABA website. If you are a member, you can access the Virtual University, then go to "Ask an Expert" and ask your question. This is a great resource.

1

Related Questions

User Avatar

Legal implications that could arise from miscommunicationTHE SERIOUS IMPLICATIONS ARISE when the designer handles contractor time extention.

User Avatar

A "contract" bond is a guarantee that has been issued by an insurance company. The contract bond guarantees that the "contractor" will perform a service according to the specifics of a contract.

User Avatar

If a contractor dies while working in your basement you will not be liable. He is working under his will trying to fix something and they usually let you know via word of mouth or contractual agreement that any injury including death on the job will not be your liability.

User Avatar

i dont know about other security services but i can provide security patrol services, anywhere in india

User Avatar

When building a project financed by a construction loan, for example, a waiver would release the right of an insurer's contractual right to take legal action against a third party responsible for a loss to an insured for which a claim has been paid (Suppliers).

User Avatar

Your State government should have a branch called the Regisrtrar of Contractors, or something similar. Contact them for your most accurate answers.

User Avatar

Term can be used interchangeable . A company can be a electrical contractor if they work directly for the owner of a project. That same contractor becomes a subcontractor when he works for another contractor. The other contractor may work for the owner of a project, but must subs the work to another contractor of which he would be then the sub contractor.

User Avatar

An insured contractor is a contractor who carries a Commercial General Liability Insurance Policy.

User Avatar

Traditionally the contractor provides the Insurance. The owner verifies that the contractor has insurance prior to hiring that contractor.

User Avatar

Where should one draw a line between IFC Drawings issued by the designer and shopdrawings to be developed by the Contractor? Are there any industry standards or eventually some contractual framework or guidelines that could define each party's responsibilities? A lot of designers tend to throw the responsibility of their incomplete design on the contractor. Should IFC drawings be fully coordinated and allow contractor to proceed with the Works based on these drawings (except for some specialist details)?

User Avatar

hire a contractor hire a contractor

User Avatar

The duration of The Contractor is 1.63 hours.

User Avatar

A residential contractor specializes in building homes which people will live in. A building contractor oversees the building of commercial property.

User Avatar

CW offers contractual rights to a 3rd party to redress non-performance through the terms of the contact. Performance Bond is a sum held in surety that can be called upon in the event of the contractor not performing in accordance with the contract

User Avatar

Contractor license bonds basically say that a contractor complies with any local laws that pertain to his/her job. This can be for a general contractor, electrician, plumber, etc.

User Avatar

Are you the contractor, the subcontractor, or the person who hired the contractor in the first place? If you're the person who hired the general contractor, you don't have to do anything - this is between the general contractor and the subcontractor. As long as you pay the contractor the agreed-upon price, you can wash your hands of the matter. If you're the subcontractor, and the general contractor who hired you is not paying what he owes, you can sue him for breach of contract. If you are the general contractor, you better have a really good reason for not paying the subcontractor (the subcontractor materially breached its contract with you, for example).

User Avatar

Hafeez Contractor was born in 1950.

User Avatar

Behram Contractor died in 2001.

User Avatar

Behram Contractor was born in 1930.

User Avatar

Nari Contractor was born in 1934.

User Avatar

Nazneen Contractor is 5' 4".

User Avatar

An independent contractor refers to a person who is self-employed. An independent contractor may also be referred to as a freelancer.


Copyright © 2020 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.