Insurance Coverage Requirements

Purpose

Defines what insurance coverage Spartan Plumbing is required to maintain — by role, vehicle, and operation type — and ensures all staff understand what is covered and what is not. ## Who This Applies To

Josh (owner, coverage decision-maker), the Operations Manager (records), and all employees who drive company vehicles or work on customer property. ## Required Coverage Summary

| Coverage Type | What It Covers | Required For |

|---|---|---|

| General Liability | Customer property damage, bodily injury at job sites | All operations — always active |

| Commercial Auto | Company vehicles in accidents | All vehicles in fleet |

| Workers Compensation | Employee injury on the job | All W-2 employees from Day 1 |

| Umbrella/Excess Liability | Additional coverage above GL limits | Company-wide |

## Workers Compensation

- All W-2 employees are covered from their first day of employment. - From Slack: When an injury occurs on the job, the technician fills out workers comp paperwork and is directed to urgent care or the ER depending on injury severity (e. g. , animal bite requiring a rabies vaccine). - Workers comp premium is based on payroll — a significant headcount increase mid-year may require a policy update. - Do not let an injured employee self-treat and not report. All injuries must be documented same day. ## General Liability — Key Limits

- Spartan's GL policy should cover at minimum: $1M per occurrence, $2M aggregate

- Property damage (customer home damage caused by Spartan work) is covered under GL

- If a job causes damage: document immediately, notify Josh same day, file with GL carrier within 24 hours

## Commercial Auto — Vehicle Addition Protocol

Any new vehicle used for Spartan work must be added to the commercial auto policy BEFORE use on a job. Contact the carrier with VIN and driver information. ## What Is NOT Covered

- Employee-owned tools (personal tools stolen from a job site are not covered by Spartan's policy)

- Damage caused intentionally or by gross negligence

- Work performed outside the scope of the license (unlicensed work may void coverage)

## Insurance Claims — Field Procedure

1. Incident occurs → document immediately (photos, description, names involved)

2. Notify Josh same day

3. Josh/the Operations Manager files claim with carrier within 24 hours

4. Do not discuss liability with the other party

5. Do not offer to pay for damage out of pocket without management approval

## Important Notes

- Insurance is a Josh decision. No employee makes coverage promises or takes actions that could create coverage gaps. - All workers must be properly classified (W-2 vs. 1099) before a job starts — misclassification affects workers comp coverage. ## Related SOPs

- Insurance Management & Renewals — renewal process

- On-the-Job Injury Response — injury reporting

- Vehicle Accident Procedures — auto claims

- Workers Compensation Process — injury paperwork