If for example you hire a custom applicator and they cause damage to your property you will expect them to have insurance coverage. It is good to know the damage can be fixed without hurting the individual custom applicator financially. It is also peace of mind to know that there are financial resources backing him up so that the damage can be fixed or paid for. An example is the custom applicator spray’s the incorrect product on your field. In order to be reimbursed for your losses completely you have to deal with the custom applicator. If they do not have the insurance or finances, you are going to have to learn to do without.
Requiring a Certificate of insurance up front is a good
practice. A good second choice is a Confirmation of Insurance Coverage letter
with the insurance brokers letterhead. It is very quick and easy to provide. A
certificate is issued by an insurance company or its broker. It verifies that a
certain insurance policy is in effect for stated amounts and coverages and
names those insured.
Now if you are the one doing the custom work and you cause the property damage. Do you know if you have legal liability coverage? Do you know if your equipment is insured and will be repaired or replaced by your insurance program? For your peace of mind ask the questions of your broker, don’t assume. Tell them exactly what you are doing so that there are no surprises. Be ready to provide a confirmation of coverage letter when it is requested by your customers. This will make you look very professional and organized. There are business’ that do not operate without requiring these certificates to be on file because they know how important this is.
Be sure to seek advice and purchase insurance from those who understand your business!