298: Hire Your Own Lawyer, Lose Your Coverage: The Costly Government Contracting Mistake with Wes Edison

Today I sit down with insurance expert Wes to demystify the policies every government contractor needs but few truly understand. We cover why a General Liability (GL) policy typically includes attorney fees (if you notify the carrier before hiring your own lawyer), why a certificate ≠ the policy, how exclusions (like aviation work) can leave you exposed, and how audits can trigger surprise bills if you don’t price insurance into bids. Real numbers, real stakes: a threatened $700,000 suit that settled for $5,000 (I paid a $2,000 deductible), a $240,000 aircraft damage claim denied under standard GL, audits demanding $15,000 after higher-than-estimated revenue, and cyber “social engineering” fraud that many policies only cover (often up to $250,000) if you phone-verify wire changes. We also hit W-2 vs. 1099 pitfalls, multi-state workers’ comp, and why many policies run 400+ pages—so get a second opinion before you sign or bid.

Key Takeaways:

• Notify your carrier first. GL often supplies the attorney and covers fees; hiring your own lawyer first can void coverage.

• Match policy to scope. Aviation work needs aviation liability; add states for workers’ comp; price insurance into bids to avoid audit shocks.

• Harden the basics. Have your agent review contracts + operations + full policies (not the certificate); add cyber/EPLI and follow phone-verification for wires.

Learn more: https://govcongiants.org/

Linkedin: https://www.linkedin.com/in/wes-edison/