Every premium auditor should strive to paint a good picture as to what the insured does. There are some questions that should be answered no matter what type of risk the insured is; contractor, mercantile, manufacturer, dealerships, etc.. Today I would like to focus on just a few items that I think are important to include for contracting risks and answering the following questions would be a good start for your description of operations.
- is the insured a general contractor or a specialty contractor (i.e. roofer, drywall, painting, excavation, etc.)
- does the insured do commercial or residential work
- what size projects do they do (i.e. $500 to $10,000?… $100,000 to $500,000?… $1,000,000 to $5,000,000?)
- what type of work is performed by the insured’s own employees (i.e. carpentry, electrical, drywall, etc.?)
- what type of trade work is subcontracted out
- did each of the subcontractor used have a certificate of insurance
- was there any contract/casual or 1099 type labor used
- did the insured use any employee leasing companies for trade work
- does the insured provide materials. if so, what types
- does the insured operate out of state
- were there any ocip/ccip project the insured was involved with
Below is a funny video of some construction work that did not go well. Enjoy…..