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Do you have Care, Custody and Control coverage?

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Do you have Care, Custody and Control coverage?
Insurance Tip #1


Understanding Care, Custody and Control


What you, as a contractor, must know to protect yourself from the potential of financial disaster


Many different contractors fall under the broad definition of Artisan contractors. Plumbers, painters, electricians, power washers, roof washers and glass cleaners are a few examples. And their exposures are similar. Artisan contractors do work at customer's premises. Some or all of the premises or equipment may be deemed to be in the "Care, Custody and Control" of the contractor. The problem is that if a contractor damages the customer's property, the contractors General Liability policy will decline to provide coverage, citing the Care, Custody and Control exclusion that is in the General Liability contract.

Here are a few examples of how the exclusion works:

#1 ~ A painter was hired to paint the exterior trim of a brick house. The owners went elsewhere during the week long job and gave the painter the keys to the house. Because the house was encased in a lot of vines, part of the job was to remove the vines. The painter used blowtorches to do this. The flame from the blowtorch went through a crack in the brickwork igniting some combustible material on the inside of the brickwork. The contractor did not notice the small fire when he quit for the day and locked up and went home for the night. That night the house burned to the ground. The painter's insurer denied coverage for the loss of the entire house. Because he was working on the house and the house was in his Care, Custody and Control and NO coverage applies.

#2 ~ Another claim involved a heating and air conditioning contractor who was removing a cooling unit from a customer's roof. Just as the unit was moved off of the building, one of the cables holding it frayed and broke. The excessive weight on the remaining cable caused them to break also and the air conditioning unit fell to the ground six floors. The unit was destroyed. Again, NO coverage because of the Care, Custody and Control exclusion.

#3 ~ An employee of a power wash company was cleaning an expensive lava glass floor of a customer's vestibule. The spray head flew off and drove right into the glass floor. The floor was damaged to the tune of $10,500. The insurance carrier denied the claim The same Care, Custody and Control exclusion applied under the General Liability policy for the item being worked on.

The examples are endless. Any firm that does work at a customer's premises has some degree of a Care, Custody and Control loss exposure. Most policies include this confusing Care, Custody and Control exclusion, resulting in claims being denied.


ACCIDENTS DO HAPPEN!


At Joseph Walters Insurance, our General Liability policy provides coverage for the property of others that is damaged by your operations. This "Good Will Coverage†sometimes referred to as “Faulty Workmanship Coverageâ€, has been included to provide payment for damage to customer's property caused by your business operations. As a result, the Care, Custody and Control exclusion is eliminated. There is a maximum payout per policy.

The bottom line is this. The main reason you purchased insurance is to protect yourself against financial disaster. Your first mistake can be simply not knowing what to ask for.

Call us anytime and talk to any of our licensed professionals. When you hang up you'll be smarter about insurance. Whether you are a power washer, roof or window cleaner, dealing with an experienced agency that specializes in the type of insurance coverage you need could be one of the best decisions you make regarding your business.


Because what you don't know can hurt you...



Regards,





Joe Walters Insurance

 

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