Spray Foam General Liability Insurance
There are a lot of risks involved when you install spray foam. Spray Foam General Liability Insurance is basic broad insurance policy that protects you business and those around you. This policy protects other people (third parties) from bodily injury or property damage as a result of your business operations. Basically if you hurt someone or damage their property that is what is covered by this policy.
Overspray is a common item to make sure that you have coverage for your spray foam business.
Open Roof for most spray foam roofing companies they just go over the top of the existing roofing but some companies do have to tear off and replace some damaged underlying material. During this “open roof” situation there could be rain, sleet, or snow enter the building and damage the interior structure. This is normally excluded from most general liability insurance policies in order to keep the price down on the insurance policy.
Additional Insured Endorsements this is the actual mechanism that transfers risk for the customer or another contractor. This endorsement adds another entity to your insurance policy.
Completed Operations this additional insured endorsement provides coverage down the road in case something happens after you finish installing the product.
Ongoing Operations this is the coverage that provides better coverage during the course of installation.
Primary Wording this endorsement makes your general liability insurance pay first in the event of a claim. Primary wording is used on larger commercial and industrial jobs. Sometimes new home general contractors require this also.
Waiver of Subrogation this endorsement waives the right to subrogate for the insurance company. Subrogation is one of the basic tenets of insurance and just meams that the responsible party pays. A waiver of subrogation means that your insurance company is prevented from recouping their claim payouts from the responsible party. An example of this would be if you are sued as a result of your customer or another contractor. If you have a waiver of subrogation your insurance company would just defend you in court. If you do not have a waiver and you are sued as a result of another company then your insurance company would seek to recoup their defense costs for the claim.
It is very important to review your insurance policy and make sure there are no exclusions mentioned on the policy that you might need covered in the event of a claim. Many clients assume that they bought insurance and they are covered but operations change year after year and so do insurance policies. I have seen policies that exclude coverage for spray foam insulation written through a loop hole under the broad category of insulation. The carrier might issue a policy but there is no coverage through the general liability policy. I have seen roofing policies that exclude coverage for roof coatings like elastomeric or silicone. It is very important to work with an insurance agent that understands the work that you perform.
Some common items not covered by spray foam general liability insurance include Pollution Liability, Injured Employees, Vehicles Licensed for Road Use, and Tools & Equipment. There are other types of insurance policies that cover these risks.