A subcontractor's workers died after being hoisted by a pickup truck with a pulley system. The Texas Supreme Court ruled that the insurance company's auto-use exclusion blocked coverage for the accident. However, the court found that the subsequent-to-execution exclusion did not apply because the subcontract was effectively executed through performance and mutual agreement before the accident occurred. This case shows that how and when contracts are signed matters for insurance coverage.
Get your subcontracts signed BEFORE work begins. Starting work before signing can create disputes about when the contract was actually executed, affecting insurance coverage.
Understand what your insurance excludes. Auto-use exclusions may block coverage for accidents involving vehicles, even if used in unconventional ways like hoisting equipment.