“Certificates of Insurance” are becoming more cumbersome, unreasonable, and
expensive for portable restroom operators, adding to the costs of doing business
expenses that are totally unjustified.
Behind the flurry of additional cost are General Contractors (GC’s) who are
transferring all of their business risk to subcontractors on the job relieving
themselves of all the responsibility that comes with being a GC. I guess if they
think they can get a way with it, they will do it.
The real issue to consider is the fact that a business that provides portable
restrooms for a construction site is not a subcontractor. Providing portable
restrooms for a construction site translates your company into being a service
provider.
You must still comply with all the same insurance requirements as the framers and
roofers (subcontractors) of the job. This is not right! Why does the GC demand
this of you too? It simply is because they can. There is absolutely no valid reason to
require a service provider to produce a “Certificate of Insurance.”
If you were to query the GC as to why they need the certificate, I am sure most
wouldn’t have a clue and just as a matter of policy demand it from everyone. I
guarantee that if they mustered up some type of reasoning it would be totally
incorrect.
I think it is time to start fighting back! We may be futilely banging our head against
a wall, but if we don’t try, nothing will ever change. I am starting a campaign
beginning in the state of California. This campaign will be just a starting point to
educate the GC’s and let them know that they cannot expect portable restroom
businesses to comply with the same insurance requirements as the subcontractors.
expensive for portable restroom operators, adding to the costs of doing business
expenses that are totally unjustified.
Behind the flurry of additional cost are General Contractors (GC’s) who are
transferring all of their business risk to subcontractors on the job relieving
themselves of all the responsibility that comes with being a GC. I guess if they
think they can get a way with it, they will do it.
The real issue to consider is the fact that a business that provides portable
restrooms for a construction site is not a subcontractor. Providing portable
restrooms for a construction site translates your company into being a service
provider.
You must still comply with all the same insurance requirements as the framers and
roofers (subcontractors) of the job. This is not right! Why does the GC demand
this of you too? It simply is because they can. There is absolutely no valid reason to
require a service provider to produce a “Certificate of Insurance.”
If you were to query the GC as to why they need the certificate, I am sure most
wouldn’t have a clue and just as a matter of policy demand it from everyone. I
guarantee that if they mustered up some type of reasoning it would be totally
incorrect.
I think it is time to start fighting back! We may be futilely banging our head against
a wall, but if we don’t try, nothing will ever change. I am starting a campaign
beginning in the state of California. This campaign will be just a starting point to
educate the GC’s and let them know that they cannot expect portable restroom
businesses to comply with the same insurance requirements as the subcontractors.
A Call To Action
| Certificates of Insurance and Portable Sanitation |
| By Mark Herring |
 | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  | |  |
 | |  | |  | |  | |  | |  | |  | |  | |  |
Serving the American Liquid Waste Industry Since 2002
Let’s face it, if the GC’s discover that they cannot find any portable restroom service providers to comply with
their insurance requirements, they will be forced to examine those requirements realizing the error and be forced to
adjust them. Idly accepting them year after year has done nothing but reinforce the position of the General
Contractor.
I am starting in CA for many reasons. First, it seems that everything starts in California. Secondly, it happens to be
is a major problem state for this issue. I happen to insure many of the portable restroom operators in California
which will make cooperation much easier. Additionally, California has every major home builder/GC working
there. Insurance issues consume a great deal more time than they did even five years ago. You are still providing the
same services. Let’s band together and fight back!
In order to make this a successful venture we will need to have all portable restroom operators on board in any
given area. If you believe you are in an area where all of your competitors will get on board with this idea, let me
know and I will guide you through the process. If the GC cannot find any operator that will comply with their
insurance requirements, what are they going to do? They will have to change the requirements until they are
reasonable to the portable restroom industry.
I have received an overwhelming number of emails and calls regarding my last article about certificates of
insurance/Additional Insured Endorsements/ Primary and Non-contributory wording/Waiver of Subrogation. All of
these things are unreasonable to ask of a service provider. You are accepting risk that is not yours. You also have to
pay for the certificates of insurance because you are taking on more risk. You should not have this expense or
problem.
If you work with any of the large GC’s you are taking on much more exposure than you may realize. If you want
to jump on board and fight back, send an email to markh@heffgroup.com or contact me at the numbers below. If
we can get all of your competitors to agree to fight back, we are ready to fight! It is ridiculous what the GC’s are
asking for. If we fight back, we might be able to change the requirements. If we do nothing, it will only get worse.
If we all band together, will have a strong unyielding voice!!!
their insurance requirements, they will be forced to examine those requirements realizing the error and be forced to
adjust them. Idly accepting them year after year has done nothing but reinforce the position of the General
Contractor.
I am starting in CA for many reasons. First, it seems that everything starts in California. Secondly, it happens to be
is a major problem state for this issue. I happen to insure many of the portable restroom operators in California
which will make cooperation much easier. Additionally, California has every major home builder/GC working
there. Insurance issues consume a great deal more time than they did even five years ago. You are still providing the
same services. Let’s band together and fight back!
In order to make this a successful venture we will need to have all portable restroom operators on board in any
given area. If you believe you are in an area where all of your competitors will get on board with this idea, let me
know and I will guide you through the process. If the GC cannot find any operator that will comply with their
insurance requirements, what are they going to do? They will have to change the requirements until they are
reasonable to the portable restroom industry.
I have received an overwhelming number of emails and calls regarding my last article about certificates of
insurance/Additional Insured Endorsements/ Primary and Non-contributory wording/Waiver of Subrogation. All of
these things are unreasonable to ask of a service provider. You are accepting risk that is not yours. You also have to
pay for the certificates of insurance because you are taking on more risk. You should not have this expense or
problem.
If you work with any of the large GC’s you are taking on much more exposure than you may realize. If you want
to jump on board and fight back, send an email to markh@heffgroup.com or contact me at the numbers below. If
we can get all of your competitors to agree to fight back, we are ready to fight! It is ridiculous what the GC’s are
asking for. If we fight back, we might be able to change the requirements. If we do nothing, it will only get worse.
If we all band together, will have a strong unyielding voice!!!
| Mark Herring |