Newsletter of the Canadian Association of Recycling Industries
Volume 3, No. 10, October 2011
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Mitigate Exposure to Loss with the Use of Certificates of Insurance
A Certificate of Insurance is issued by an insurance broker, and will indicate the type of insurance (e.g., Commercial General Liability, Pollution Liability, Automobile, Garage Automobile, or Property). The certificate states the Named Insured, the effective and expiry dates, and the policy limits.
A cancellation clause can give the certificate holder a right to be notified by the insurance company if the policy is cancelled or changed in a material way. However, it is up to the certificate holder to request a new certificate after the original expires.
The certificate will contain a section to add the job description, description of operations, and other miscellaneous information such as additional insured status. Being added as an additional insured allows you to transfer risk from your policy to your subcontractor’s policy for vicarious liability arising out of the acts of the subcontractor. For example, if you subcontract the dismantling, removal and trucking of metal from a customer’s site, you could be held liable for the negligence of the subcontractor. By being added as an additional insured to the subcontractor’s policy, you would receive coverage under that policy, thereby protecting your own policy.
A certificate of insurance verifies that insurance coverage exists at a certain time.
You should request certificates from:
1) Subcontractors or other parties who act on your behalf, as you may be held liable for the negligent acts of these third parties. For example, should a third party have no insurance, or insufficient insurance, your insurance policy may be called in to pay for the defenses and any damages awarded for the contracted party’s negligence.
2) Contractors or Suppliers that come onto your site (e.g., snow removal, window washing, air conditioning contractors, trucking companies and third-party torch cutters). With respect to outside torch cutters beware that due to the nature of this type of operation most policies will be governed by a welding warranty, which states a certain criteria must be followed when using torches for coverage to exist.
You may be required to supply certificates to customers, building owners, equipment/automobile lessors, and mortgagees.
When requesting Certificates of Insurance
Check that the limit of liability reflects the exposure. Minimum limits requested should be no less than $1,000,000.
Be added as an ‘additional insured’ on a ‘primary and noncontributing basis’. A signed endorsement must be requested from the Insurer to receive the benefits of additional insured status. A certificate alone will not give you additional insured status.
Have the cancellation clause amended by deleting will endeavor to mail and but failure to do so shall impose no obligation or liability of any kind upon the Insurer.
Replace abeyance reoccurring certificates prior to the expiry date.
CARI’s 14th Annual Consumers Night
at the Fairmont Royal York
Registration form now available online
CARI’s 71st Annual Convention
June 21 – 23, 2012
at the Fairmont Chateau Laurier
For information on CARI events contact Donna Turner
at (905) 426-9313.
OTHER UPCOMING EVENTS
October 5 – 6 Orlando, FL
Resource Recycling Inc.
October 23ˆ25 Munich, Germany
Autumn Round-Table Sessions
November 1 – 4 Shanghai, China
World Scrap Congress
November 8 Chicago, IL
Nonferrous Scrap Series: Recycled Aluminum Conference
November 9 – 10 Chicago, IL
5th Annual Steel Scrap Conference
November 9-10 Montreal, QC
Canadian Waste & Recycling Expo
Messe Frankfurt, Inc.
November 18 Hong Kong
6th World Recycling Forum
International Conference & Exhibition on Electronics, Battery & Car Recycling ICM
November 18 Chandigarh, India
Steel Scrap Summit