5 MSA Insurance Requirements That Trip Up New Tower Contractors

Every tower contractor remembers the first time they reviewed a carrier MSA and realized their insurance program fell short. The gap between what a basic commercial insurance program provides and what telecom MSAs demand is substantial. Here are the five requirements that most frequently derail new contractors. First, umbrella limits of $5M or more with no height exclusion. Many new tower contractors carry $1M or $2M umbrella policies because that is what their prior general contracting or electrical work required. Telecom MSAs routinely require $5M minimum, with some tier-one carriers demanding $10M. Additionally, the umbrella must not contain a height exclusion, which many standard market umbrellas include by default for any work above 40 feet. Second, additional insured status extending to completed operations. Most contractors understand they need to add the client as an additional insured, but many policies only provide AI status for ongoing operations via CG 20 10. MSAs require both CG 20 10 and CG 20 37 (or blanket equivalents) so the client remains protected after project completion. Without completed operations AI coverage, the certificate will be rejected. Third, waiver of subrogation on both GL and workers compensation. The WC waiver is where contractors stumble. Adding a waiver of subrogation to a workers compensation policy requires a specific endorsement, and in some states, it triggers an additional premium charge. Contractors who overlook the WC waiver will have their certificates rejected even if the GL waiver is in place. Fourth, primary and noncontributory language. Standard CGL policies do not automatically provide primary and noncontributory status for additional insureds. This requires endorsement CG 20 01 or equivalent manuscript wording. Without it, the client's own insurance could be triggered first, which violates the MSA terms and exposes the contractor to breach of contract claims. Fifth, experience modification rate below a specified threshold. Most MSAs require an EMR of 1.0 or below, and many specify 0.90 or 0.85. New companies without three years of workers compensation history may not have a published EMR, creating a catch-22 where they cannot meet the MSA requirement until they have operated long enough to generate a modifier. Some carriers will accept a letter from the rating bureau confirming no published EMR in lieu of meeting the threshold, but this must be negotiated. The solution is to work with a broker who specializes in tower contractor insurance before pursuing MSA-based work. Building the insurance program to MSA specifications from day one is far less expensive than retrofitting coverage after a contract has been signed.