Commercial GL Insurance

Date 03-13-2006 22:19

Every couple of years I re-visit with my insurance agent about my business description and classification as there is a great difference in the rates between sub-categories. "Welding Inspector" is too broad so I bounce around to sub-categories that the underwriter determines. Like many of you, I work in structural, petrochemical, heavy fabrication and mining industries. I have shifted to more shop work than field work.

My question is: What category(s) are some of you listed in on your GL policy?

Without add-ons for payroll etc., my base charge for GL is around $3K for $2M in policy limits. Are these rates in line with what you pay?

Any information is appreciated.

~thirdeye~

By BF

Date 03-15-2006 16:01

I haven't done independent inspection for many years, but when I did I had a real good insurance agent and he rated me like an architect or engineers assistant. I told him I basically did job site inspections and sent reports to designers and building departments and owners and that I was the eyes for each. He said I wasn't much different than the desinger/owner/bldg dept or their assistant, making field visits to verify or check things. Except my report stated I inspected certain areas or things and "to the best of my knowledge they comformed or didn't conform" to the approved - drawing, specs, codes, or whatever. And nowhere did I ever accept or reject anything, it was always "to the best of my knowledge it conformed or didn't comform". It was always up to someone else to accept or reject based on the information at hand. I was just eyes and ears. So he decided my liability was limited since I didn't accept or reject any work. And since the tools/equipment I used on site wasn't much more than office supplies I had very limited liability to cause injury to someone else. So I got my GL at a very affordable rate.
Sometimes we have to help the insurance agents, this includes workmans comp, because they really don't understand us and will rate us high to cover their back side. So I just helped them understand in a way that was beneficial to me.
Hope this opens the box of thought.
Carpe Diem,
BF

By thirdeye (***)

Date 03-16-2006 15:12

BF,

Thanks for the input, I have covered some of those issues with my agent. In re-reading my post I relaized that I neglected to mention that I also perform NDT (MT, UT & PT) so actually there is some equipment and grading of test results involved. With that in mind, I have explained to my agent how NDT does not alter the item under examination and that these methods detect things that are not always visable to the naked eye. He does understand that a report is really the end product. Of course there is a standard disclaimer on the reports, and written procedures are client approved.

It is interesting that my Workers Comp coverage lists my occupation as engineering services but the GL underwriters always seem to prefer other descriptions. The worst case happened about 20 years ago, following a merger with another company. Upon review of the new corporation, an underwriter mis-understood the term "weld testing" and assumed it meant "well testing" as many of our clients were oil & gas companies. My new partner paid the premimum (which was triple what I had been paying) and we didn't catch the error until renewal time.

Thanks again

~thirdeye~