Hurricane Irma’s historic size and impact have been felt throughout the state. In addition to its impact on Floridians and their property, Hurricane Irma has the potential to impact your insurance after the fact. It is important to make sure you have the proper coverage in place before accepting projects outside your normal scope of operations; leasing and operating new equipment; or hiring new sub-contractors.
Below are several important post Hurricane Irma considerations to make.
WORKERS’ COMPENSATION: Employees may be working extensive overtime hours or you may be hiring temporary sub-contractors.
- Consider increasing payroll exposures now so your work comp audit is not negatively impacted at year end. Be sure to break out overtime pay so that at the time of the premium audit, the auditor will be able to discount it back to straight time. If the auditor cannot readily break out the overtime portion, it will be used in calculating the premium.
- If hiring temporary workers or sub-contractors, make sure those workers have insurance and obtain proof of coverage. If hiring a subcontractor who does not have workers’ compensation coverage or it gets cancelled and one of the sub’s employees gets hurt, the responsibility for that injury can fall to you. This will ultimately impact your work comp experience mod and insurance premium. It’s the same situation when hiring an exemption holder. If that exemption expires and the subcontractor does not renew it in a timely fashion, that sub is no longer exempt. If he/she is hurt on the job, a claim can be filed against your company to cover the injury. To quickly look up the status of a sub-contractor’s work comp insurance, you can do so here: Search for Proof of Compliance
- If undertaking or bidding projects outside of your normal scope of operations ensure you are aware of the appropriate class codes and rates for that work. Workers’ Compensation class codes are specific to the type of work being performed, and the rates can vary greatly. New or complimentary operations often require additional class codes being added to your WC policy. Make sure you’re aware if the new class code comes with a higher rate, so there will be no surprises at the year-end audit.
EQUIPMENT FLOATERS & INLAND MARINE: Leasing & operating temporary equipment could put you at risk.
- If you lease temporary equipment, then you should verify the limits of your insurance coverage and possibly increase your coverage limits.
- Unusual equipment often requires special coverage. In addition, renting equipment with an operator will require proof of insurance for the operator as well. Some equipment, such as cranes or lift trucks with large booms require special coverage and needs to be discussed with your Account Manager or Client Advisor to ensure it is properly covered for weight of load, tipping, etc.
- In addition, if you are renting a crane with an operator, the rental company should be providing the coverage – for the equipment, employee (workers’ comp), and any associated general liability for operating the crane. Be sure to review the rental agreement with your Client Advisor or Account Manager to make sure that you are protected and that you obtain proof of coverage from the crane company.
MOLD: Do not end up with a mold-related lawsuit; have the proper coverage in place.
- With hurricane related water damage, inevitably comes mold. If you become involved in any mold mitigation projects, make sure to have proper pollution and professional coverage in place. Without it, you will not be covered against claims from removal, disposal, or cleanup work.
GENERAL LIABILITY: Policy exclusions may impact the scope of work you are taking on.
- For companies that have never worked on residential projects and might be taking on that type of work following Hurricane Irma, it is important to note that you may have policy exclusions that restrict your coverage. Sub-contractors may also have exclusions to their policies for residential, condo, or multi-family work, so it’s critical to verify there are none of these exclusions on your or your sub-contractors’ General Liability policy, prior to performing any of this work.
It is important to discuss these considerations with your trusted Client Advisor or Account Manager at Gulfshore Insurance to ensure you have the proper protection. If you have any questions or concerns regarding this information, please contact us. We are here to assist you and happy to answer any questions you have.