Congratulations on prequalifying as a Skanska subcontractor. That fact alone says you are a good contractor with an excellent work history. If you are reading this page, odds are you have either performed work for Skanska in the past, or you were recently awarded a project but suddenly something is “wrong” with your insurance and nobody can explain exactly why.
What we will try to do is provide you with some guidance to either help get your situation fixed, or maybe give you a few clues to get you on the job site as soon as possible.
Of all the large national general contractors out there, Skanska’s requirements tend to be pretty “fair” with regards to the liabilities they want you to accept as their subcontractor. If they discovered something is “wrong” with your insurance, odds are your policy will not provide you (and Skanska) with any protection if you have a claim. Skanska bases their requirements on current case law and in many cases are AHEAD of the insurance industry on what you may need as a contractor to protect yourself from unseen risks.
A great example of this protection are the “Additional Insured” endorsements Skanska requires from their subcontractors. Most insurance companies will try to provide as little coverage as possible to anybody listed as an Additional Insured on your policy. Skanska knows this. They also know that you have agreed in writing to “indemnify and defend” Skanska if there ever was a claim on the job related to your work. If you did not have the correct endorsement Skanska requires, then it is entirely possible the insurance company could not only deny the claim, but also not provide you any legal representation too. This scenario would put most trade contractors out of business quickly. In summary, they are very particular about what they want, but a large majority of these requirements provide you with a lot of protection.
Here are several common items that Skanska asks its subcontractors for and a brief explanation of what they are.
These are many reasons why:
- Skanska has begun reviewing “form schedules” of many carriers. They have found that many are hiding the fact they are trying to deny coverage.
- Many subcontractors purchase their insurance from the “low bidder”. This means many Skanska required coverages may be automatically excluded to get the low price.
- Many/most insurance agents are completely unfamiliar with Skanska and their requirements.
- Your current agent may only represent a small number of insurance carriers. Those he does represent are unwilling to provide the endorsements needed.
- Skanska has listed several very large national carriers on their “unacceptable” carrier list. Some of these carriers represent a HUGE number of trade contractors in Florida.
- Your business is so small that your current insurance company is unwilling to add the necessary endorsements.
The best thing you can do is check your insurance with Skanska as soon as possible. Prior to a bid if possible. Although we have seen them offer “minor” concessions in very special circumstances, 95% of the time you will need to change your coverage around and quickly too.
DO NOT PANIC and assume this change will cost you $50,000. In many cases the changes required can be for a very minor cost. In some cases it may cost you a lot more, but that usually means your current coverage was offering you little if any protection anyways.
Give your agent as much time as possible to fix the problem.
Insurance can be a very slow and lumbering industry. You would think in this day of computers, the internet, and mobile technology this could all be done quickly. Sometimes it can, but that is not the rule. How much time? 90 days is way more than enough time. Any longer than that? You need a new agent!
Lastly, do not immediately assume we are trying to sell you something! If your best friend is your agent, and you absolutely refuse to change, we understand. Call us anyways, and we will try to direct you as best we can to get the situation fixed quickly. You can repay us by telling your contracting friends about us.
Call our office at 800,685.0027 and ask for Ed Collins at extension 102 or ed@demo.onthemapmarketing.com. He is our resident Skanska expert and will be happy to assist you.