The New Construction Certificate

00:04 hey it’s my pleasure to introduce Ken
00:07 first and you think again so on Ken
00:16 first my lovely assistant and business
00:19 partner Jason’s hashanah will be manning
00:22 de Vanna White role of clicking on my
00:25 slides in FS we’ve been practicing all
00:30 week for this as much as jeff has said
00:34 all you know who we are there are a lot
00:37 of new faces here tonight but just for a
00:39 quick minute I just want to explain
00:40 Leavitt first is one of the largest
00:43 independent insurance brokers in
00:45 Westchester and our niche is the real
00:47 estate and construction industries and
00:50 the reason why our 50-person office is
00:53 the bottom are the advisors to the
00:55 builders Institute the condo coop
00:56 council and all the association’s here
00:58 tonight is because we’ve created
01:02 programs you need to these industries
01:05 where we grew together and get your
01:08 group discounts on insurance so those of
01:10 you that have not don’t know about our
01:12 services feel free to call possibly
01:15 offer some unique value added services
01:18 that no other insurance broker can
01:20 provide to help people that manage
01:22 properties that own buildings then run
01:25 construction companies and so forth
01:27 because we’re a niche player were able
01:30 to create and develop unique products
01:32 and services for these two industries so
01:34 feel free to talk to Jason or myself
01:37 after tonight’s presentation I also want
01:39 to take a minute to introduce two other
01:41 people in the audience one from our
01:43 office is packed Clare is the director
01:45 of our
01:46 state division that can you raise your
01:48 arm and also I’d like to take a minute
01:53 where you know I’m going to build up to
01:55 a new insurance certificate that’s out
01:57 there called the Accord 855 and we’re
02:02 lucky enough tonight to have with us
02:04 Anthony Carlucci from Greenblatt well
02:07 whelming remoulade and Brady I thought
02:11 was it yeah well being brainy gremlin on
02:14 them for 20 years like they don’t accept
02:16 where he went right here so Anthony was
02:19 one of the creators of this certificate
02:21 on part of the committee that’s worked
02:23 for multiple years on this the end
02:26 product you know either those jokes when
02:28 you get too many people in the room and
02:30 what the end product looks like it’s not
02:31 a perfect end result but we’re going to
02:33 talk about it when we help towards the
02:35 end of the presentation and talk about
02:37 how you might you might not want to be
02:39 using this insurance certificate Jason
02:42 and I opinion in front of you many many
02:44 times and we’ve told you what the value
02:47 of this insurance certificate is you do
02:50 not have a sample in front of you we’re
02:52 not going to talk about the end outside
02:53 or in front of me towards until the end
02:55 so you don’t have to look at them this
02:57 is just a regular certificate we’ve told
03:01 you over and over again I mean nothing
03:04 you can’t rely on this piece of paper
03:07 all this piece of paper tells you is
03:10 that the contractor that you hired has
03:13 an insurance policy with certain limits
03:16 that supposedly add them on a certain
03:18 date that’s it we’ve been in front of
03:21 you multiple multiple tonics explaining
03:24 this and we’ve told you that the second
03:26 part of the equation is that you need to
03:28 have a contract to go with the
03:31 certificate and once those two pieces
03:33 come together then you are protected one
03:38 without the other serves you no good so
03:41 I’m going to review that again
03:43 get get you to that point why you need
03:45 those parts to come together to fit the
03:47 puzzle but then we’re going to take it
03:49 to the next stage which has evolved over
03:52 the last couple years which is what has
03:54 created the invention of this new
03:55 certificate which you might have a
03:58 contract you might have the insurance
04:00 certificate but you don’t know what type
04:03 of insurance that contractor is telling
04:05 you he has you have no idea whether or
04:08 not that policy is a real policy of fake
04:10 policy policy that excludes him going on
04:12 the roof that exclusive working on your
04:15 on your house excludes working on your
04:17 building excludes fupas you’re in the
04:19 Bronx you have no idea it just shows
04:21 that they have insurance so now a new
04:24 certificate has been created called me
04:26 55 then is supplemental it’s an
04:28 additional form that you might or might
04:30 want your contractors to start to fill
04:33 out truthfully I don’t think anyone here
04:37 in this room will end up using that
04:38 certificate fun we’re going to short the
04:41 end of this I am going to show you a
04:42 spectrum of ways from doing almost
04:45 nothing to having this certificate and
04:48 then there are ways that you can ratchet
04:50 it back and try to figure out what’s
04:51 useful for your operation if you’re a
04:54 general contractor you’re going to want
04:56 to be pretty close to this because
04:58 you’re hiring contractors day in and day
04:59 out and this is going to dramatically
05:01 impact your insurance rates for the long
05:03 term if you’re a property manager you
05:05 might just want to help pull out a
05:07 couple factors from this and just be
05:10 focused on checking on your roofers or
05:12 your painters or the guys on the
05:14 exterior of the building and you might
05:16 adapt some some iteration of this to
05:19 what you feel you need to protect at the
05:22 end of the day your insurance if you’re
05:24 dealing with a professional insurance
05:25 broker and has not new insurance policy
05:28 your policies are going to protect you
05:31 when you’re not protected from is that
05:34 if a claim hits and you’ve hired a sub
05:37 or a contractor
05:38 with that insurance it’s going to drive
05:40 up your insurance rates because he
05:42 insurance this claim that your painter
05:44 that fell off the scaffold or the ladder
05:46 is now going to impact you for five
05:48 years so you’re at the end of this
05:50 presentation will have to determine how
05:52 important that is to you you know how
05:54 important it is to control your rates
05:56 can you control your board you know you
05:59 might not be able to control the board
06:00 of your building the boat and they just
06:03 want to hire the cheapest contractor
06:04 each time so we put Lee set by the end
06:07 of tonight you’ll know what’s at risk
06:10 Jason so we start at the beginning I’m
06:13 going to go backwards just to remind you
06:15 of how we got here and it all starts
06:17 with workers compensation the whole
06:19 concept behind workers comp is that a
06:21 guy gets injured he gets paid his
06:25 medical bills get paid most of his loss
06:28 compensation gets paid end of story but
06:32 a hundred years ago before workers comp
06:34 Oh what happened is the guy would fall
06:35 in a factory and he would have to sue
06:37 the owner of the factory to collect
06:40 because he broke his leg and then the
06:42 owner the mean upon owner the factory
06:44 would sue him and say no you were
06:45 negligent you should’ve been on that one
06:47 for something and so you’d have them
06:49 suing each other lawyers would be
06:51 involved it turned into a big expensive
06:54 ordeal that would drag out for a long
06:55 time so a hundred years ago they created
06:58 workers compensation they said no
07:00 lawyers no attorneys no lawsuits the guy
07:04 gets paid no questions asked we might
07:07 not all agree when it when employing
07:09 it’s injured you might want to sue you
07:11 might want to fight it the course lean
07:13 towards easy to pour in you know get
07:16 your employees but trust me we’re all
07:18 saving a lot of money by taking the
07:20 attorneys out of the system I just
07:22 having
07:22 an injured employee collect for his
07:24 medical bills and move on get lost page
07:27 the wages that hopefully come back to
07:29 work except in New York there used to be
07:36 a small loophole that has now grown into
07:39 a huge loophole in New York and you’ve
07:42 heard the terms labor law to 4241 scvle
07:47 safe place to work on all these things
07:51 are connected they’re all different
07:52 names for a law that’s been on the books
07:54 for many many years but lawyers have now
07:57 figured a way to exploit that to be able
08:00 to sue when someone gets injured the
08:02 footnote is this does not apply to
08:05 construction on single-family or
08:07 two-family homes there are some ways to
08:10 penetrate it but for the most part these
08:13 what we’re going to talk about does not
08:15 involve if you’re just you know dealing
08:17 on single or two-family homes it doesn’t
08:19 impact you know co-ops condos apartment
08:21 buildings and so for single-family homes
08:23 them so in New York there’s this law
08:28 that says the building owner or the
08:32 general contractor whoever’s hiring this
08:34 contractor is required to provide a safe
08:36 place to work when something evolved it
08:39 involves Heights now the term Heights
08:43 ruin this law was first created was the
08:45 whole thing was about people falling off
08:47 scaffolds on the side of the building
08:48 and it was up it was those evil building
08:51 owners and we’re not providing a safe
08:52 place for these contractors to work and
08:54 so that’s where this open this whole
08:56 came from but as this has been exploited
08:59 over the years heights now means your
09:02 electrician that gets up on the chair to
09:04 change a light bulb if he falls off
09:06 that’s a hike related injury the painter
09:08 that’s on the ladder inside the
09:10 apartment it falls off that’s all I
09:12 related
09:12 injury the excavator that falls into the
09:15 ditch is a height related injury it’s
09:18 been pushed to such an extreme that you
09:21 could have a contractor who’s sick
09:23 that’s standing on the floor and on
09:24 hammer Falls also ins ladder lands on
09:27 his foot height related he has a broken
09:30 foot that’s a hype related claim but was
09:35 the worst part about this law is that
09:38 when it was created to protect these
09:40 contractors working on the outside these
09:42 buildings they said it’s a hundred
09:44 percent the responsibility of the
09:46 business of the building owner it’s
09:49 absolute liability on that general
09:51 contractor that hires the company hires
09:53 the cell to work for him there’s no
09:56 defense okay so you can hire a painter
10:00 who goes out and has a six-pack at lunch
10:03 comes back grabs the broken letter
10:07 that’s sitting in the dumpster that says
10:08 do not use gets on that drum falls off
10:12 you’re responsible so this has been a
10:16 field day for attorneys trial attorneys
10:19 in New York and it is you know slowly
10:21 slowly has snowballed over the last 10
10:25 years as more more people have figured
10:27 out this great way to collect when you
10:29 get injured at work i’ll tell you one
10:32 example we have one contractor also no
10:36 walls who showed up on his desk for one
10:38 the guys that works for him that doesn’t
10:40 speak English so we get through this
10:43 whole thing and it turns and says why
10:45 are you suing and the guy said I’m gonna
10:48 sue you I don’t even know what this is
10:49 about turns out you have ambulance
10:52 chasers now that go through the
10:54 hospitals and he remember signing a full
10:57 arm because someone came to his room
10:58 said oh you got a juror on the job this
11:00 is for workers compensation they signed
11:02 a form that basically retained an
11:04 attorney for him so his boss said you
11:06 can’t sue got stop this because we can
11:09 you know we’re going to go out of
11:09 business and so those injured employee
11:12 you know called up his attorney and said
11:14 you know I never wanted to sue please
11:16 cancel this when the attorney said we
11:18 kidding I’m gonna get you a quarter
11:19 million dollars for nothing the lawsuit
11:23 pursued okay the system has gotten out
11:26 of control so how does this work so in
11:31 New York guy breaks his leg falls off
11:35 the ladder breaks his leg in New York
11:37 he’s painting he collects workers comp
11:40 the normal way like every other state in
11:42 the country but now he sues the building
11:46 owner he soon as the GC okay he can’t
11:50 sue his balls this poor guy that got
11:52 injured cuz there’s workers comp low so
11:55 the only way that he’s able to collect
11:56 is to sue the building owner or the GC
12:04 so we’ve been telling you for the last
12:07 five years that the way to protect
12:09 yourself is to push this risk back down
12:12 to the employer you control the subs you
12:16 control the contractors that come up to
12:17 your property so you it’s your job to
12:20 demand that they sell that this contract
12:23 that comes on your property is going to
12:24 hold it it’s going to take
12:26 responsibility for this injury and
12:28 you’re not going to get hit with the
12:30 claim so we’ve been teaching for years
12:32 how to transfer this risk we told you as
12:38 I said before you get a certificate and
12:40 then you have a contract contract would
12:43 be one paragraph long or it could be
12:46 five pages long but it up said contained
12:48 two key ingredients one that you require
12:52 this contractor that you hire to list
12:54 you as additional each word on his
12:56 policies and to that he’s going to hold
12:59 you harmless he’s going to identify you
13:01 so and if he screws up if his God gets
13:04 injured if he causes a problem on the
13:05 job he’s saying his insurance is going
13:08 to take care of this and he needs both
13:10 these things in a contract that he signs
13:13 before he starts working not after the
13:17 accident before he goes on the job site
13:20 and again one more time having a
13:24 certificate that shows that you’re
13:25 additionally insured means nothing if
13:29 you don’t have this other part you need
13:32 both parts of the puzzle to protect
13:35 yourself one without the other you got
13:38 nothing so what is happening a lawsuits
13:45 as i said in new york are now in the six
13:47 and seven-figure level of it you don’t
13:50 have to be a powerful legion it just
13:52 open L can break your arm you you fall
13:54 off a soft tissue injury it’s in the
13:57 hundreds and hundreds of thousands of
13:58 dollars so this has led that of all the
14:03 contractors insurance rates have now
14:05 skyrocketed guys are working out on
14:08 roofs on the exterior building have
14:10 rates have gone up four five six times
14:12 and anyone to tie them and you’ve heard
14:14 the story over the last couple of years
14:16 guys that aren’t on Heights have also
14:18 seen their rates go up with two to three
14:20 times all the result of this so then
14:24 what happens there’s always a game and
14:27 the smaller contractors have figured out
14:30 a way to get around this and they buy
14:32 cheap insurance they figured out they
14:36 can’t afford all these rate increases
14:37 because the GCS they all have to pay for
14:40 this and then property managers say I’m
14:42 not going to pay for this and so you got
14:44 the smaller guys out there that are
14:46 getting what’s called cheap insurance so
14:48 what does that mean here you are you get
14:52 sued you try to transfer the risk down
14:55 and then you’re blocked okay you can’t
15:00 push the insurance and the fault and
15:02 this claim down to the sub any longer
15:04 because he bought cheap insurance what
15:07 do I mean by that they buying policies
15:10 that excluded claims it says what that
15:14 will cover certain things but we’re not
15:16 going to cover you if one of your guys
15:17 gets injured on the job meaning they
15:20 don’t want to be brought into a labor
15:21 law claim it could exclude if they not
15:24 have your cell tires or so and that sub
15:27 gets injured there could be an exclusion
15:29 on the policy for that they’re going to
15:31 be exclusion their exclusion zone
15:33 policies that would say we’re going to
15:34 come you accept if you go up on Heights
15:36 they accept if you go over to stories
15:39 except if you go on the exterior of the
15:42 building they don’t want to cover you
15:43 for that and that’s how they get cheap
15:45 insurance there’s policies out there
15:48 that are excluding any claims that
15:51 involve working on a new building
15:52 working the five boroughs working on a
15:55 residential building contractors are
15:58 finding whatever we there is to save
16:00 money on insurance and they’re getting
16:01 policy that happens have these
16:03 exclusions or as blatantly as it says it
16:08 says we’re not going to cover any
16:10 contracts you sign so if you’ve signed a
16:12 whole long list of the GC if you signed
16:14 a whole harmless to them to the property
16:16 manager who are not covering you again
16:20 all of you that have good insurance
16:22 you’re protected okay you’re just going
16:26 to be unsuccessful in pushing the clay
16:27 down you might get hit some policies for
16:31 channel countries
16:32 listen if you hire a contractor with
16:34 cheap insurance you’re gonna have to
16:36 pick up the first 25 thousand or fifty
16:38 thousand dollars of the claim but you’re
16:40 still going to be protected but it will
16:43 impact you in the long run here’s a
16:47 partial list of cheap insurance
16:49 companies we give this to all our
16:52 contractors without looking to hire
16:54 yourselves and anyone that needs a copy
16:57 of the feel free to email jason or ally
16:58 who you get you with it it’s not I did
17:01 not hand this out today but this is a
17:03 partial list of banned insurance company
17:06 said some of them you’ll recognize you
17:08 come first you’ll see a lot of
17:09 carpenters with you’ll see Essex you’ll
17:13 see century surety you’ll see a link and
17:15 casualty those are common cheap
17:19 insurance companies in in this area and
17:23 you’re going to have to start deciding
17:25 whether or not when you’re looking at
17:27 two bids whether or not they have the
17:29 right type of insurance you’re going to
17:33 decide how much time and effort you want
17:36 to invest to protect your insurance
17:39 company from getting hit with these
17:41 claims you’re not going to get hit with
17:43 it your insurance company is going to
17:44 get hit with it and when your insurance
17:46 company gets hit with it it shows up on
17:48 your claims history and you know shop
17:51 around your insurance we have to show
17:53 five years of history and that claim
17:56 will show for five years and if you’re a
17:59 general contractor you have one of these
18:00 claims it shows that you hired a cheap
18:02 sub I’ll tell you what the insurance
18:04 companies thing they think this guy runs
18:07 a shoddy job they think this guy is just
18:09 hiring and cheapest subs they’re not
18:12 looking at the paperwork and we can’t
18:14 save as much as Jason and I want to
18:16 shake it and say no it’s just a random
18:17 thing look here all the great
18:19 certificates that he gets and all the
18:20 contracts and he reviews this is we have
18:23 no credibility because now the insurance
18:24 companies had to pay out of 5
18:25 $2,000 claim and your insurance rates
18:28 will have gone up for many years to come
18:31 so what do I do now is talk to you about
18:34 the spectrum of protection that you
18:37 could do and you’re going to add the end
18:39 of tonight you’re going to decide what’s
18:41 good you know what’s reasonable for your
18:43 operation so the lowest level is what
18:47 people used to do you just collected a
18:50 certificate of insurance a workers comp
18:52 and liability certificate boom and today
18:54 obviously hopefully no one in this room
18:56 is doing that many of you now have
19:02 ratcheted up and you’re getting a
19:03 subcontractor agreement from every
19:05 contractor but before they start work
19:08 and that’s to remove but you can rent it
19:12 up one more level first of all to make
19:16 sure that they have workers come if
19:18 they’re if you’re working in New york
19:20 you could go online to see if their
19:22 workers comp policy is active than in
19:24 the oh it’s not slowing on and let it
19:26 lapse you can’t rely on insurance
19:28 companies sending your cancellation
19:29 notice but there’s a database on workers
19:32 comp and you could email us and we’ll
19:33 tell you what that is and you could
19:35 before you pay him before you hire them
19:37 the smaller guys at you’re a little
19:38 questionable bound you can check it once
19:40 a month whatever you again it’s up to
19:43 you and then on the liability side you
19:48 you know comes on that checklist that we
19:50 just showed you of 30 different
19:52 insurance companies okay make sure they
19:55 hear you just and this is what many of
19:57 our contraries we’re doing three years
19:59 and they just checked to see is that
20:01 contractor that cell with any one of
20:03 these insurance companies and they made
20:05 all migrant many of our contractors send
20:10 us the certificates of the selves that
20:12 they hire and they let us review and
20:14 that’s another way of you that you can
20:17 protect
20:17 protect yourself but you can ratchet it
20:20 oh and one more now you could ask for
20:25 documentation to find out whether or not
20:28 the insurance they have is cheap
20:30 insurance for now because we just we now
20:34 just got hit with a general contractor
20:35 in Westchester that diligently would go
20:38 down that list of 30 companies and he
20:40 made sure he never hired one of those
20:41 well turns out he just hired itself this
20:44 best full from western New York who had
20:47 a company we never heard of so it wasn’t
20:49 on the checklist he never sent us the
20:51 insurance certificate of course that’s
20:52 the stuff that had an injury it turns
20:55 out of course that small company and
20:57 insurance cover that none of us had
20:58 heard of a didn’t make our list was
21:01 cheap insurance so he’s getting hit with
21:03 it so that’s one of the reasons why
21:05 things have ratcheted up we’re now
21:08 people more sophisticated general
21:11 contractors in the city even gc’s out
21:14 here starting to say we’re going to add
21:17 one more piece of documentation that
21:19 we’re going to require our contractors
21:21 to provide us before they start work
21:23 this document has to be signed by that
21:27 contractors insurance broker so what
21:32 we’re going to go over next he is this
21:34 document that’s now called you know the
21:36 certificate being 55 and you do not have
21:39 to look at the one that’s because I’m
21:41 going to have it up here and we’re going
21:43 to go through that and I’m just going to
21:45 go three flee and I’m going to it up one
21:48 more Bob’s that’s Jason there’s even
21:51 another extreme that some of the biggest
21:52 gc’s to then I don’t think anyone here
21:55 but
21:56 the gc’s in the city have hoped teams of
21:59 people that are now analyzing this and
22:02 they require comedy the policy of every
22:04 contractor that comes on their job just
22:07 want to show you the whole spectrum and
22:09 extreme did you go to protect yourselves
22:11 from hiring subs that might have been
22:14 insurance so then the second i’m going
22:17 to go over the certificate 855 there for
22:21 handouts in front of you don’t bother
22:23 looking at them now what is the 855 one
22:28 is an 11-page document that came out at
22:31 the same time of the year 55 to help you
22:33 understand the 13 questions on the 855
22:39 we then gave you a copy a highlighted
22:42 version of the age 55 with what we say
22:44 if you’re going to use that these are
22:47 the answers that you’re going to want to
22:49 look for on that policy and then the
22:52 fourth document is a letter that we
22:54 created that if you’re kind of hours and
22:56 you want us to send your word document
22:58 of it that you can just use it it’s a
23:00 simplified letter that you sent out to
23:02 yourselves and have him there their
23:04 insurance broker sign it as some of the
23:07 similar questions and focuses on where
23:09 we see the biggest exposures so I’m
23:12 going to briefly now go through the 855
23:15 there are 13 questions the first one to
23:20 assess if the insurance company that
23:22 you’re dealing with is it admitted or
23:25 not admitted I’m not going to explain
23:28 this to I’m not going to go through
23:29 definitions and waste your time on it
23:31 because you’re not going to really it’s
23:33 not a really a relevant factor for you
23:35 unless your large general contractor and
23:39 then we’re more than happy to spend as
23:40 much time as
23:41 unexplained Ian you could be asking
23:44 whether or not what type of do they are
23:46 they using the standard insurance
23:48 isoforms or do they have own concocted
23:52 custom-made forms but none see is
23:57 important question this you might come
23:59 out of this meeting and say you know
24:00 what I’m going to send to my other
24:02 contractors than I meijer this form and
24:05 just tell to answer questions see thin f
24:07 & L or whatever and that’s all you want
24:10 you want them to do figure out what’s
24:12 relevant to you so C is the question
24:15 that requires his insurance broker to
24:18 say are there any major exclusions on
24:20 this policy does it exclude where he
24:23 works that you can’t go the five
24:24 boroughs you can’t go in to commit you
24:26 know Connecticut or maybe type of
24:28 construction you can’t go on new
24:30 buildings you can’t go on residential
24:31 buildings is there a restriction on
24:33 there about how high he’s allowed to
24:35 work is their classification limitation
24:38 their policies out there you Hiram
24:40 painter and his posse might say he’s
24:43 covered for painting and nothing else
24:45 and then also you have your major Ellis
24:47 while you’re here you just build finish
24:49 out that shed out there and get up and
24:51 do he might not have any coverage for
24:53 that maybe there’s a designated work
24:58 that he’s only allowed to do certain
25:01 things or he’s not allowed to do certain
25:03 things so this quite this is one
25:05 question on there could fill in a lot of
25:08 the aspects of it that you might be
25:09 concerned about there are different
25:12 forms of additional short out there if
25:15 you’re sophisticated you seen you want
25:17 to know which ones really to dig into
25:19 and ask for we’re happy to spend time
25:22 with that but as long as one of yours
25:23 your subs have additional insured like
25:26 an additional short you’ll be fine okay
25:31 then and then the wording starts again
25:34 well the first question is you know how
25:36 is his policy
25:37 will his policy pick up primary meaning
25:40 his policy will pay first and then yours
25:43 that’s the way you want it but most of
25:46 the people this room are not going to
25:47 try to fight for that many the policies
25:49 already have that in there but I don’t
25:51 think it’s a high priority for for the
25:53 average contractor or building owner and
25:57 will you get advance notice you know the
25:59 policies canceled everyone’s going to
26:01 say yes but you can’t count on that
26:04 you’re going to want to know that they
26:06 have a normal blanket contractual
26:08 liability and you’re going to want to
26:10 know that there were no changes on GH
26:13 and I on their policy unfortunately when
26:17 you head I don’t know how many people
26:18 were on the committee to make this but
26:20 they know phrasing on this is like a
26:23 triple negative and so we get calls
26:25 constantly from people that are trying
26:27 to fill this out of what does this
26:29 exactly be but basically you want to
26:32 know and they have additional insured
26:35 and nothing was changed and the Contra
26:38 you know the original policies used to
26:42 say if you’re siding contractor covered
26:44 we want to make sure that hasn’t been
26:45 changed their policies cheap insurance
26:47 that says you can’t sign a contract and
26:52 this is the one that says is there an
26:54 explosion of you now added an exclusion
26:56 there about someone getting injured on
26:58 the job site so G H and I are important
27:02 questions that you would want answered
27:04 Jason and then your job involves any
27:11 site work has been the foundations and
27:14 so forth you want to make sure the
27:15 excavator and people working there don’t
27:18 have any
27:19 that type of work you want to know
27:22 there’s a crazy exclusion out there for
27:26 insured verse ensures you don’t want
27:29 that exclusion on there it’s important
27:31 as weird as it sounds it’s some of the
27:33 way the phrase it could be it might
27:35 exclude that listing you as additional
27:37 insured as stupid as it sounds because
27:39 they’ll say oh no that name has been put
27:41 on your policy so we’re not going to
27:42 protect that name so you don’t want okay
27:46 you want to be sure no changes were made
27:49 and then you hear a visit KLR important
27:53 because l it says similar stuff for the
27:56 subs of the Sun to make sure they don’t
27:58 you know that the stuff that you hire
28:01 doesn’t have exclusions on this policy
28:04 that excludes him hollering cells or
28:07 that is something happens the subs that
28:08 he hires there’s no protection from him
28:11 pushing it down and then you don’t you
28:14 don’t have to worry about them so so is
28:26 this jason on tuesday let’s say thursday
28:28 tuesday up in Albany fighting this law
28:32 hundreds and hundreds of people in turns
28:35 feel in the construction field every
28:37 association was represented there we’ve
28:39 been fighting for years to try to fight
28:42 the scaffold law what he went chasing is
28:44 holding in his hands is directors
28:46 illinois used to had a similar law when
28:49 they come rid of the law allowing you
28:53 know the law had said its absolute
28:54 liability and it’s the fault of the GC
28:57 and the property owner then illinois
28:59 said no you know what okay it should be
29:00 fair we’ll figure out a commercial
29:02 member is but what happened to the
29:05 insurance rates anyone that’s in the
29:08 construction industry knows how much
29:10 their insurance rates have gone up in
29:12 the last couple years this is the impact
29:14 that if we can
29:15 something changed in all the day this
29:17 would happen and jason has another
29:19 picture devil forgot your smile you’re
29:24 not in the smile you this was a study
29:26 done with the Tappan Zee Bridge on how
29:28 much more is costing on the New York
29:31 Cyprus in New Jersey selling all week on
29:34 a labor law they’re not using different
29:36 materials on the New Jersey side they’re
29:38 not using different paint or different
29:41 barges but if you get injured on the New
29:43 York side you have laid along on your to
29:47 help you bayit chris Christie we had
29:51 Sheldon Silver so we had home once
29:54 Sheldon Silver he had been known you
29:56 know the big thing that has come out
29:58 about him is that he was being paid
30:00 millions and millions of dollars by
30:01 trial where you know partnerships in the
30:05 city all the ones you see advertising
30:06 the TV were funding him to be his
30:08 advocate to keep this law in effect you
30:12 know when Albert you know we talked
30:13 about with our lobbyists here
30:16 unfortunately we don’t know with the
30:18 person that has stepped in to sheldon
30:20 silver shoes will be much different they
30:24 can’t get worse we’re hoping it’s
30:26 too soon now to tell what’s around the
30:28 corner so Jason are there any things
30:33 that you want to add to what I said
30:36 originally open up for questions first
30:38 then it died
30:54 here and it’s very much gone through if
31:07 you’re doing requested by and consider
31:10 article question responding to do so
31:15 right thing
31:17 business request assistant for related
31:21 document and analyze everything
31:24 or you want to take the risk and can
31:31 hear your building owner or your
31:34 contractor you have insurance your
31:37 insurance is going to respond the ideal
31:40 situation is to push that to somebody
31:43 else any of you wanted ahead of them
31:51 this processing no I think such done a
31:54 lot of I think they’re one of the things
31:58 yes we will have that primary coverage
32:00 through their carriers you just want to
32:03 make sure that your only carriers don’t
32:06 have requirements in your policies for
32:08 what you need to get from North
32:10 subcontractors string in order for them
32:14 to give them for recovery to pointed out
32:16 sometimes there’s a trade-off with
32:19 deductibles and si ours and things like
32:22 that that they may require of you if you
32:24 don’t have good insurance from
32:25 yourselves with something that
32:32 tips are you only have carbon under
32:36 policy in your subcontractor that proper
32:39 coverage it’s important for everybody in
32:42 building or condo or co-op those pipes
32:49 and wires are not yes what you’re hiring
33:03 contractor being a contractor a lot of
33:07 times when we work with gc’s or property
33:10 managers we give a certificate saying on
33:14 additional insured to all locations is
33:17 that something that’s still a viable
33:18 option for as a board member as well
33:22 something on both sides of that seat an
33:26 offense it’s that still a viable
33:28 solution putting all all locations or
33:32 should the insurance policies before
33:34 each location as we have approached them
33:36 all occasions is sufficient sufficient
33:38 you could get a subcontractor agreement
33:42 you know it says at Volvo omelets and
33:45 lizards additional sure for all your
33:47 buildings or your bondage go as long as
33:50 you pull that is keep one insurance
33:52 certificate grovyle your protective know
33:55 some people so she sees will brush that
33:58 up and each other they happen
34:01 GC and says you see I want to list all
34:04 these many people as additional insured
34:05 want you to give me a certificate well
34:08 then as you see uses that same language
34:09 for every sub that they are on that job
34:12 as long as you’re going to something the
34:13 file want to contract one certificate
34:16 you’re not even your good as soon as the
34:40 GC hiring I might know anything anything
35:00 to but as far as we know it’s not
35:04 supposed to it’ll be be picked up on a
35:06 single one or two family home unless the
35:09 homeowner is giving direction yeah then
35:12 you bringing the homeowner but it’s just
35:14 you’re only a house
35:15 I
35:43 okay i gotta finish so what he’s saying
35:47 is that because that we do this as a
35:52 church burgers problem is mrs. Smith
35:54 always asking us these questions and why
35:57 they protected they have to worry about
35:59 hiring contractors and we sit down with
36:02 a leg log unless you’re directly in a
36:04 contract review I don’t worry about it
36:06 but the point is as a GC if you’re
36:08 working on a self a delay or prevent we
36:11 haul you to have that exposure so you
36:16 know look at the positive application is
36:17 here’s a roofer work on submit services
36:20 miss house there’s no exposure okay
36:23 there’s no labor law third party here GC
36:27 working on a single family or Japan we
36:29 know my yourself now you’ve given held
36:33 that diagram the opportunity to kick it
36:36 that’s because you have another later
36:58 this is not all that motion most
37:05 importantly probably the primary result
37:07 of that is it will come for another
37:09 dinner here so that when you tell you
37:11 what you should be doing is ekseption
37:13 women free dinner if the laws that are
37:16 changed who knows what’s going to happen
37:19 I mean do we think that they’re going to
37:20 just get rid of this law say there’s no
37:23 as them we think I’ll come with some
37:25 compromise that there’s you know there
37:27 could be shared responsibility well
37:29 their share responsibility you want to
37:32 push it down still so how were you gonna
37:37 ban appear on your contractors or you
37:39 protect yourself we’re what it takes
37:41 years for what happened is as much as
37:44 they’re too cheap insurance out there
37:46 there’s also much more sophistication by
37:50 gc’s and property ours there that are
37:53 now starting to screen out more and more
37:55 and they won’t let you know on the
37:58 bigger building fled guy on the roof
38:00 that doesn’t have the right type of
38:02 roofie coverage and so it’s right now we
38:05 chore many many rumors five years ago
38:07 hey bbz on John Street was able to get
38:10 ideas cheap mature I’ll have the room
38:13 person the fiber think
38:15 those roots you know the Bentley owners
38:17 in the city all that a will get without
38:18 you have a good quality insurance though
38:20 it’s getting out there more and more
38:22 it’s just the reality hello as you get
38:25 smaller and smaller if you’re a little
38:27 building and you have a board and you’re
38:30 looking at youtube to roofers and one
38:33 there’s a fifty-thousand-dollar
38:34 difference in their prize it’s hard to
38:37 explain it too much more members so we
38:41 have one of you all the buildings you’re
38:43 lucky draw pocketbook and we sure we
38:46 strongly recommend that this becomes
38:47 part of your big process don’t wait for
38:51 the day that you didn’t pay your part of
38:53 the more and you’re presenting different
38:55 numbers it should be part of your steps
38:57 when you’re sending out something out
38:58 the mid and you say send it with us this
39:01 form or the pointer for week already
39:03 which is one of the sample certificate
39:06 so you’re screening out things before
39:08 you get to that one
39:34 a little to use the word line negligence
39:47 you know some of your smaller subsets
39:50 here signing these documents so long as
39:53 you have to fight over this only is if
39:56 you’re negligent you’re having the
39:58 plumber sign this document he’s not
40:00 taking on the responsibility electrician
40:02 of the roofer and everything else if um
40:04 Liz if you want college child you have a
40:06 son this but it’s just do to your
40:08 negligence that you’re taking
40:09 responsibility for um sir robert stein
40:14 maybe we need 55 help if i were to write
40:19 an rfp for doing road work doing a
40:22 painting job something like that would I
40:24 put in to the RFP requirement that the
40:26 insurance certificates they provide to
40:28 us are the 855 and also limit two more
40:31 who signs them and if they’re inaccurate
40:35 who bears responsibility okay so this is
40:38 again this is supplemental to the normal
40:40 certificate differences will be an
40:42 additional certificate to require and it
40:45 requires that contractors insurance
40:48 broker to sign on it as I’ll do the
40:52 courts and whether or not the insurance
40:54 rubber was yep if they got it and then
40:59 also they won’t lie on it I know I did
41:01 was say because it feels like my but you
41:04 know it’s so new but it’s fraud so then
41:07 you have to go through the area church
41:09 worker has nervous
41:11 but the truth is it’s mostly the smaller
41:15 insurance workers are giving these
41:16 crappy insurance policies they’re all
41:18 based in Berlin and it’s true and we see
41:22 all the certificates in the lessons
41:23 these guys in Brooklyn that people get
41:25 the certificate in a lot of business by
41:28 the time use sudo so it’s just one more
41:31 step but it’s not now think widely
41:33 available are you guys looking at this
41:37 stuff in the RSS RRS no we are not we
41:41 needed this of the RS this is not even
41:43 being used by most general contractors
41:45 and so this is months that we had anyone
41:48 who’s this group in just last few months
41:51 and and most insurance workers don’t
41:54 even know how to fill it out that’s so
41:56 that’s why we’re here to educate you
41:59 just about the issue you the puter how
42:04 to implement it if you know usually
42:06 buildings here wishes for most of them
42:08 smaller cells Dodgers won’t go ahead and
42:11 fill that one of you might take six
42:13 questions at a great girl duck and and
42:15 say we’ve is notarized by your insurance
42:17 program you want to be done it and focus
42:19 on the things that are concerning to you
42:23 good question related your participation
42:28 somewhere that can be accessed our
42:31 knowledge he’s shot how far sweetie tell
42:36 me this presentation I just a
42:39 premonition couple slides now the future
42:42 so kind of sets one of the hand their
42:52 solution what to do how to proceed so
42:55 you’re really slide explain touch
43:00 everyone emotion you know where we live
43:02 just contact us if you want the whole
43:05 presentation you just want to age of it
43:06 if you want to Stephanie just told you
43:09 have you given to like where do I stand
43:20 up it is all the time whenever you use
43:24 it sometime and the food is you should
43:28 talk to your insurance broker and your
43:30 attorney and figure out where this is
43:46 he’s very understand any other bushes
43:53 good love CD by once again another great
44:01 job by any person Jason see shadow live
44:04 adverse associates thank you both for an
44:06 excellent presentation