Since the start of the CSIA insurance program, it has become apparent that many members employ uninsured subcontractors. This is a concern because, in the event that a subcontractor causes a loss, this will appear on the member’s loss record for five years, inevitably resulting in higher premiums for them.
Well, I have great news! CSIA is partnering with the International Society of Automation (ISA) to create
The ISA Insurance Program for Automation Professionals, the coverage that subcontractors needs at very affordable prices.
So, why are uninsured subcontractors so prevalent within the CSIA community? There are a couple of reasons.
First of all, many subcontractors are under the illusion that they, as subcontractors, are insured by the member’s policy. This is not the case. In the event of a loss caused by the fault of the subcontractor, your policy will respond to defend you but it will not protect the subcontractor. Therefore, the loss will fall on your policy. Your insurance carrier will seek to recover the loss from the subcontractor. If they are unable to do so, it will be the member’s insurance loss history that is impacted.
Secondly, many smaller subcontractors find they cannot afford the cost of purchasing Professional Errors & Omissions and General Liability Insurance. This can range from $3,000 up to $8,000 annually.
Your clients, in their contract with you, are increasingly mandating the insurance coverage you need to carry. In addition, they insist that these insurance requirements be passed through to any of your subcontractors. As a result, contractually, you should only work with insured subcontractors. This requirement is becoming the norm.
In collaboration with the International Society of Automation (ISA), CSIA is now able to offer an affordable solution. We have put together a combined Professional Errors and Omissions/General Liability policy with Lloyd’s of London that provides subcontractors such coverage.
You should have a contract with your subcontractors that includes the requirement that they carry General and Professional Errors & Omissions insurance coverage. By doing so, you will ensure that it is the subcontractor’s policy that bears any loss they cause, not yours. This policy is available to all members of CSIA.
For more information regarding this valuable new benefit, direct your subcontractors to:
https://www.isa.org/membership/benefits/reduced-rates-on-professional-and-general-liability-coverage/
Your subcontractors can, within a few minutes, complete a simple application on-line, obtain a coverage quote, bind the coverage and get their policy in place.
If you have any questions regarding this or the CSIA insurance programs in general, please contact me, Paul Barnard, CSIA Insurance Program Manager at
paulbarnard@csia-insurance.com or by phone at +1 610-507-6595.