Adding Yourself as Additional Insured on Contractor Insurance

[Brad G.]

I would like to know if others typically add themselves as additional insured on their contractor's general liability insurance.  Is this just a nice to have, or are their specific cases where this is really needed?

As background, I have been trying to do so because the insurance agent I was working with indicated my policy did not cover faulty workmanship, and I would need to be additional insured on contractor's insurance to have coverage.  The agent also indicated that contractor's insurance would not provide me much value in general unless I was an additional insured.  I can see the benefit of being covered under the contractor's insurance, but I was surprised by this faulty workmanship exclusion in my policy and the statement of the limited value to me of the contractor's insurance unless I were an additional insured.  

While I have been trying to add myself as additional insured, some of the contractors I have been working with do not seem to be familiar with the process and requesting it has made things more difficult.  So, I am wondering if it's really needed and seeking input form the BP community on what to do.  I have done some research online, and it seems that many general contractor policies do not cover faulty workmanship, and I would not be covered even as an additional insured in that case.  

I do realize that this detailed question may be policy specific and have to be answered by an insurance agent.  So, if any other Connecticut investors have recommendations for insurance agents, that would be greatly appreciated.

[Jason Bott]

@Brad G. You should get yourself added as an Additional Insured to all your contractors policies as long as the additional premium to the contractor is in line with the risk. 

You may have a 1 person cleaning crew who makes $10 an hour and it may cost them $150 to get this added to their policy.  Maybe you let this one slide.  But for the roofing contractor you should hold them to this.

Regarding Faulty Workmanship.  I want to make sure you understand how this clause works. 

You hire an incompetent tile installer and they lay the tile incorrectly.  You want to have it replaced by a competent installer.  The original installer can not turn in a claim to retile the floor and can not turn in a claim to have another tile guy come in and replace it.

 BUT, if you keep the bad tile job in place & it leads to a trip and fall claim, the trip and fall claim is covered.