Frequently Asked Questions for RWC Insurance Advantage

As a leader in the residential home building industry, RWC Insurance Advantage is committed to providing general liability insurance and select other coverages to members of RWC. Below are some commonly asked questions:

 What is an additional insured?

An Additional Insured is a person or organization that, like you, enjoys the benefits of being an insured under your policy. An additional insured cannot make changes to your policy.

Why should I be an additional insured on my subcontractors’ policies?

When you require your subcontractors to list you as an Additional Insured on their General Liability policies, you become entitled to insurance coverage benefits under their policies. Additional Insured status is most often used in connection with an indemnification agreement, also known as a hold-harmless clause. Hold harmless clauses are common elements of a properly executed contract between you and your subcontractors. Under a hold-harmless, your subcontractors agree not to hold you responsible for their negligent acts which may have happened while they are working for you. For example, if your painter over-sprays several cars parked near the three-story townhouse you are building, the painter’s policy will respond to the claims made by the owners of the cars. If you are brought into a lawsuit filed by the car owners, the painter’s insurance company will defend you.

What if my subcontractor doesn’t have insurance? 

If your subcontractor doesn’t have his or her own General Liability, you can be held liable for claims made against the subcontractor. This is because the General Contractor is considered to be in charge of the worksite, and therefore, is responsible for the safety of the public at that site. Beware of policies sold by some insurance companies that exclude claims arising out of the work performed for you by subcontractors.