image credit: YP_Studio/shutterstock.com
Trade Contractors who are enrolled on a Wrap-Up Project, or CIP, are covered for their work on-site by the insurance contained within the program. However, before they can start work, they must provide proof of their corporate insurance coverage, typically for off-site exposures.
Proof of insurance coverage is especially important for Trade Contractors who are excluded from the program. They must show evidence of insurance for both on and off-site coverage.
On-site vs Off-site Coverage
Insurance protects the Trade Contractor, General Contractor and Owner from bodily injury or property damage that may arise from work performed on or off the jobsite. The difference between on-site and off-site coverage is on-site insurance provides coverage only at the project site; off-site insurance provides coverage for operations performed away from the project site.
Although the CIP provides certain on-site coverages, it’s important to have evidence of the Trade Contractor’s corporate policies to protect all parties against potential claims. Some examples of coverages typically required by contracts could be:
- Additional Insured Status
- Waiver of Subrogation
- Primary and Non-Contributory Language
Required Coverages for Trade Contractors
The Trade Contractor’s contract will dictate the coverage they’re required to carry in addition to the CIP. For example, Automobile Insurance is rarely provided through a CIP. Therefore, evidence of on and off-site Automobile coverage is usually required.
In addition, enrolled Trade Contractors typically provide evidence of off-site coverage for:
Excluded Trade Contractors—who are not covered by the CIP--tend to provide evidence of coverage for those same lines of insurance but must cover both on and off-site. If you need additional information about off-site coverages for Wrap-Ups, or if you have questions about specific insurance coverages, call TSIB today at 201-267-7500!