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Discussion Starter #1
Good Morning,

Received this response about additionally insured from Five Brothers:

Five Brothers said:
It's a Five Brothers policy that we are added as additional insured. I cannot send you work orders without it unfortunately.
Honestly, who would agree to this?
 
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Discussion Starter #2
72opp said:
Good Morning,

Received this response about additionally insured from Five Brothers:

Honestly, who would agree to this?
Not to many anymore. It was once considered a SOP. Now the insurance companies are on to it and won't let you without lots more $$
 
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Discussion Starter #3
Being thay I have been in the insurance business for 2+ decades I thought of a reply to this issue that someone who is signing up for work NEEDS to ask so we can all hear their response.

Statement: "dear Service Company we have been trying to acquire a general commercial liability policy that will allow us to add you as an additional insured and we finally found 1 but during the application process the Insurance Company will need to underwrite your company in order to have a basis for premium and insurance qualification and they will need all your financial records for the last 3 years, 3 years of loss runs to see if you have had any insurance claims, list of all the owners since they will have their financial history checked with the credit bureaus and whatever other background data they will need to accurately underwrite my application. Also, each owner will need to sign an application giving permission to do the background check, what is your fax number to send the application?"

These are all questions plus more that a company would ask to underwrite a risk. Why would a service company expect to be able to skate? The ONLY time our agency EVER added an additional insured was on government contracts and underwriting those type of policies are very speciallized. I just cannot fathom any insurer offering an additional insured rider to any general liability clause. This problem existed in the mid/late '90's and that was partly the reason NAMFS was formed so they could develop a policy through surplus lines carriers that would allow the additional insured endorsement BUT all of us with those policies PAY THE PRICE.
 
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Discussion Starter #4
FremontREO said:
Being thay I have been in the insurance business for 2+ decades I thought of a reply to this issue that someone who is signing up for work NEEDS to ask so we can all hear their response.

Statement: "dear Service Company we have been trying to acquire a general commercial liability policy that will allow us to add you as an additional insured and we finally found 1 but during the application process the Insurance Company will need to underwrite your company in order to have a basis for premium and insurance qualification and they will need all your financial records for the last 3 years, 3 years of loss runs to see if you have had any insurance claims, list of all the owners since they will have their financial history checked with the credit bureaus and whatever other background data they will need to accurately underwrite my application. Also, each owner will need to sign an application giving permission to do the background check, what is your fax number to send the application?"

These are all questions plus more that a company would ask to underwrite a risk. Why would a service company expect to be able to skate? The ONLY time our agency EVER added an additional insured was on government contracts and underwriting those type of policies are very speciallized. I just cannot fathom any insurer offering an additional insured rider to any general liability clause. This problem existed in the mid/late '90's and that was partly the reason NAMFS was formed so they could develop a policy through surplus lines carriers that would allow the additional insured endorsement BUT all of us with those policies PAY THE PRICE.
I would love to use that on the next company that asks that of me. Can I use it?
 
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Discussion Starter #5
Most definately. I would love to hear the response. If I was actively searching for additional companies this would be asked.
 
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FremontREO said:
Most definately. I would love to hear the response. If I was actively searching for additional companies this would be asked.
Lately they contact me. But usually tell them no thanks due to pricing, but I would love to get their reaction to it.:laughing:
 
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Discussion Starter #7
Good Morning,

I sent the contact at Five Brothers that paragraph (with a new minor changes for syntax and grammar). I do not expect a response but if one were to arise, I will post here.

Thanks!
 
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Discussion Starter #8
When we are asked to provide additional insured coverage I ask if they are willing to pay for it. Last time our cost was 10% of our annual premium per additional insured. Some GC's will cover it if you ask.

For the ones that don't, factor it into your bid just like any other cost. Boils down to if you want the work. As long as the cost is covered I don't care.

Good Luck
Dave
 
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Discussion Starter #9
They got back to me. Here is their response.

Five Brothers said:
Please have your insurance company contact me, as I think there is some kind of miscommunication here. All of our vendors add us with a small charge and no underwriting. I would be happy to speak with your insurance rep to clarify what we actually need.
 

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My response is "my company's policy is to not do add insured at the advice of my agent."

If they can have company policies...... so can we.
 

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72opp said:
They got back to me. Here is their response.
Call your agent and explain to him/her what you're hoping to accomplish, then give your potential client their name and number.

Some of these nationals are multi-billion dollar companies. I don't see why we have to add them as additional insured either, with one exception.

Naming them on the certificate of insurance acts as a trigger when the policy lapses or expires and they can request new proof of insurance from you.

I ask to be additional insured because I, personally, like to have the notification if one of my vendors is no longer insured. If their policy lapses or cancels and I'm not named on the certificate, all the liability is on MY insurance if something goes wrong.

Linda
 
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Discussion Starter #12
At least here, we can name anyone and however many we want on a certificate of insurance. If the policy lapses or is canceled everyone is notified. We offer a certificate of insurance to every client at the contract signings. Very few accept, but when they do it is just a phone call and free.

Additional insured is a different animal. There is a check box on the certificate of insurance to indicate if the named certificate holder is additionally insured or not. There is a risk to that and a premium charged for it. We used to get 1 free additional insured per year. Not anymore tough, apparently didn't work out that well for the insurance company.

Good Luck
Dave
 
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Discussion Starter #13
a1propertyclean said:
Call your agent and explain to him/her what you're hoping to accomplish, then give your potential client their name and number.

Some of these nationals are multi-billion dollar companies. I don't see why we have to add them as additional insured either, with one exception.

Naming them on the certificate of insurance acts as a trigger when the policy lapses or expires and they can request new proof of insurance from you.

I ask to be additional insured because I, personally, like to have the notification if one of my vendors is no longer insured. If their policy lapses or cancels and I'm not named on the certificate, all the liability is on MY insurance if something goes wrong.

Linda
This is what my certificate of insurance does, according to my insurance man.
 

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72opp said:
This is what my certificate of insurance does, according to my insurance man.
As long as their name is one it, they'll be notified. If not, they won't.

Too many vendors quit paying their insurance, once they're established with a client. I have a long list of vendors I'm not using anymore because their insurance has lapsed and I haven't received their new POI.

Linda
 
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Discussion Starter #15
In truth the way these Service Companies are turning in claims you should call back 5 Brothers and say that your insurance agent won't waste their time talking to them since "we do not negotiate on underwriting" and then tell them that after further review the insurance agent now thinks that 5 Brothers should be listed not as an additional insured but as a NAMED INSURED. Same coverages,,,,,,only difference is that the Service Company is just as responsible for payment of premiums as you are :)
 

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FremontREO said:
In truth the way these Service Companies are turning in claims you should call back 5 Brothers and say that your insurance agent won't waste their time talking to them since "we do not negotiate on underwriting" and then tell them that after further review the insurance agent now thinks that 5 Brothers should be listed not as an additional insured but as a NAMED INSURED. Same coverages,,,,,,only difference is that the Service Company is just as responsible for payment of premiums as you are :)
Nice
 

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72opp said:
They got back to me. Here is their response.

Originally Posted by Five Brothers
Please have your insurance company contact me, as I think there is some kind of miscommunication here. All of our vendors add us with a small charge and no underwriting. I would be happy to speak with your insurance rep to clarify what we actually need.





The reason they got back to you is that you are in the courting stage.
Once they have you in their grip expect A WHOLE lot of emails ignored.
Especially if you are trying to reason with them on why they shouldn't be taking advantage of you.
 

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5 brothers

I have to say that so far in 3 years I really haven't had many problems with 5 brothers. The only times are if my folks miss a photo or something which I can see.
I am at the point now though that I am only taking work orders from 2 companies (5 brothers being one of them).
I have found that every other company is just to low on pricing.
 

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BPWY said:
The reason they got back to you is that you are in the courting stage.
Once they have you in their grip expect A WHOLE lot of emails ignored.
Especially if you are trying to reason with them on why they shouldn't be taking advantage of you.

Once they screwed you :whistling they'll ignored you:sick:
 

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They are the most inept bunch in the trade I have ever worked with... 5 people within this space of 2 days asking the same redundant questions...they dont know the lingo...and when you bid a project or task...they want a price breakout like they want you to give away the store.
There's better ones out there.
 
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