Any subcontractors for oil companies? Insurance question

Paul Mitchell_2

Hey Guys
Yet another trivia question. We do all the service for an oil company in NJ. No deals cut. They pump oil. We do service. Once we are in the home most of them call us direct. So here is the question. This company recently got purchased. The new owners are checking insurance and want coverage we never had. The example certificate is normal except this CA9948 pollution (cant figure that out or what it is) Also one thing they want us to do is "subcontractor agrees to "hold harmless" Blank Blank, Inc et al for any and all operations performed for Blank and/or customers of Blank. Sobcontractor also agrees to provide protection under their general liability policy for any operations involving oil heat systemswhereby a claim may also arise requiring a clean up of a spill, soot/smoke, or any type of pollution related damage" What do you guys make of this? I will be in the office tomarrow figuring this out with our insurance co. Any input would be appreciated.

Biged

Sub-contractor

They are just covering their "butts" which is not unreasonal since if they send a service guy over to one of their clients they could be sued if anything goes wrong. I'm a subcontrator also and the oil company I do servicing for does not require anything, but I still have general liability (1 million) workers comp. (1 million) and 250 -500 on my work van (not enough, in the process of increasing it). you can never take any chances, remember most everybody middle name is "sue".Another thing I did was to seperate myself from the business.

S Ebels

This Google sidebar thing

Cracks me up sometimes. Just notice what shows up alongside this post.

Sounds to me like the oil company is trying to lever all liability into your lap. I'd go back to then with a similar letter demanding the same things from them. In the event the is a problem caused by them or one of their employees. See what they say then.

What's good for the goose is good for the gander.

EBEBRATT-Ed

Paul
this is probably not much help and I don't claim to be an insurance expert but here goes.............

If a company hires a sub they must cover the subs work with ther own insurance. The smart ones make sure there subs have there own insurance which reduces (but does not elimiinate) the hiring companies risk.

Because of the high cost of insurance it sounds like the hiring co. is trying to reduce it's risk for your work as much as possible.

What to do-I don't know-but if they put crappy oil in the tank and soot up a house- and it's not your fault should they be "held harmless"????????????????

Ed

GaryDidier

Seperation

Hi, Big Ed,

Can I ask how you seperated yourself from the business?
Thanx, Gary from Granville

Biged

Sub-contractor

Instead Of registering your company as a DBA (Doing Business As) Set up a Corporation or LLC, Then if anyone sues then your personal assets (house)can not be touched.

Bob Harper

Hold harmless agreements

Most smart builders require this of the subs. That way, when there's an Ooops!, the builder doesn't have to spend a fortune defending themselves.

Get a lawyer to review this agreement before signing!!! As for forms of business, they may preserve wealth by separating you from the company but the company still takes the hit. It may still cost you a lot of money in the form of disruption of work, direct costs, increased premiums, and more recently being dropped from coverage. Now, what price do you put on that?