It can be tricky to navigate all the ins and outs when having work done on your building. We’re here to help.

Mackoul is proud to provide our clients with a complimentary review of the insurance policies held by any contractors the association is looking to hire. This includes work performed both inside and outside the building.

This service is crucial as New York Labor Laws can be an onerous burden for property owners and property managers, making them financially liable for virtually any work-related accident on their premises. Prevention is always the best medicine, as a Labor Law claim on record is a big red flag and could prevent an insured from getting a reasonable quote, especially if the claim is still open. Having just one Labor Law Claim on record can result in a much higher premium for as long as five years!

Real-Life Example: A cooperative building was looking to do some facade work on their 7-story 76-unit building in the Bronx. They spoke with a contractor who agreed to do the job. Upon review of the contractor’s insurance policy, the following exclusions were discovered:

  • An exclusion for any work performed in the five boroughs of New York
  • An exclusion for exterior work on buildings over three stories
  • Fall from Heights Exclusion
  • Injury to Employees/Action Over Exclusion
  • A multi-unit structure exclusion for any buildings with more than 20 units.

The many exclusions on the contractor’s policy would have put the building at risk for a claim and provided no recourse or risk transfer back to the contractor. A certificate of insurance only lists the insurance carrier, expiration dates, and limits. Full insurance policies should always be reviewed for these types of exclusions.

What is needed to perform the review?

  • A full copy of the contractor’s general liability policy
  • An Acord 25, also known as a certificate of insurance
  • A copy of the contract between the contractor and the association, preferably before it is signed
  • An Acord 855 (only in New York)

Interested? Let us know…

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The insurance for contractors hired by an owner is not included as a part of Mackoul’s complimentary service, but to help protect our clients even further, we have prepared an informative flyer that can be distributed to each owner who will be hiring a contractor.

Mackoul Risk Solutions are not attorneys and cannot give legal advice, and as such, the contracts should be reviewed by your corporate counsel to best protect the building/association.