Glossary  |  Fillmore Insurance Agency

According to the International Risk Management Institute (IRMI), Action Over is defined as a type of action in which an injured employee, after collecting workers compensation benefits from the employer, sues a third party for contributing to the employee’s injury. Often the contractual liability section within the GL policy form leaves the employer exposed to suits against their GL policy via the Employers Liability (EL) exclusion. An example of this is when a subcontractor injured on a jobsite files a claim against his Workers Compensation carrier and then also files a claim against the General Contractor responsible for hiring the subcontractor. The subcontractor brings the “action over” back to the GC and the exception to the EL exclusion. This exclusion does not apply to liability assumed by the insured under an insured’s contract, which leaves the GC vulnerable. If the GC and the subcontractor have a written hold harmless or indemnification agreement, the GC may be held liable in an action over lawsuit. This also may apply to a temporary employee hired by the employer.

“Advertising Injury” means injury rising out of an offense committed in the course of your advertising activities, if such injury rises out of libel, slander, defamation, violation of right of privacy, piracy, unfair competition or infringement of copyright, title or slogan.

1. A limit in an insurance policy stipulating the most it will pay for all covered losses sustained during a specified period of time, usually one year. Aggregate limits are commonly included in liability policies. While not often used in property insurance, aggregates are sometimes included with respect to certain catastrophic exposures, e.g., earthquake and flood.

2. The dollar amount of reinsurance coverage during one specified period, usually 12 months, for all reinsurance losses sustained under a treaty during such period.

3. A typical aggregate limit for a contractors insurance policy is 1,000,000 or 2,000,000.

A property policy expression now out of fashion. It was used to designate contracts that promised coverage against “all risks of direct physical loss” in contrast to forms that covered for specific, named perils. The word “all” came to be perceived as open to broader interpretation than insurers intended and it was dropped in favor of the promise to cover “risks of physical loss.”

Covers your bar for employee on patron or patron on patron violence or physical injury.

There are basically six different types of coverages. Some may be required by law. Others are optional. They are:

1. Bodily injury liability, for injuries the policyholder’s causes to someone else.

2. Medical payments or Personal Injury Protection (PIP) for treatment of injuries to the driver and passengers of the policyholder car.

3. Property damage liability, for damage the policyholder causes to someone else’s property.

4. Collision, for damage to the policyholder’s car from a collision.

5. Comprehensive, for damage to the policyholder’s car not involving a collision with another car (including damage from fire, explosions, earthquakes, floods, and riots), and theft.

6. Uninsured motorist’s coverage, for costs resulting from an accident involving a hit-and-run driver or a driver who does not have insurance.

7. Underinsured motorist insurance kicks in when a liable driver does not have enough insurance to cover your damages. Your insurance will determine the amount that will be paid by the responsible party and then pay the rest. The limit of this coverage listed on your policy may be confusing, because it refers to the total amount that both your insurance company and the underinsured motorist’s insurance company will pay, as opposed to an additional amount your insurance company pays.

Auto Loan or Lease Coverage

If your vehicle is in an accident and is a total loss, this commercial auto insurance policy covers the difference between the unpaid amount on the loan or lease, and the actual cash value of the vehicle.

Covered perils in a property insurance contract: fire, lightning, windstorm, civil commotion, smoke, hail, aircraft, vehicles, explosion and riot.

General Liability: Insures against trip/slip and fall, food poisoning, injury on premises, property damage, etc.

Liquor Liability Insures against claims from over-serving, alcohol poisoning, etc.

Workers Compensation: Covers your employees against injury in the workplace.

Business Income: Insures your businesses’ income while your establishment is in repair for a covered loss

Products Coverage (Breweries): Cover your brewery’s product when your patrons take it home.

Equipment Coverage: Insures your restaurant/bar/brewery equipment against property damage/loss.

Business Property: Your non-fixed property, tenant finish and catering equipment.

Employer Practices Liability Insurance (EPLI): Very important for establishments that are high energy or serve liquor. Covers your business, management and employees from sexual harassment, wrongful termination and other civil claims.

Assault and Battery Coverage: Covers your bar for employee on patron or patron on patron violence or physical injury.

Theft/Crime: Covers you for theft or crime caused by outsiders and your employees.

Business Auto: Covers your delivery, catering or service vehicles on the road.

Spoilage: Insures your stock for loss caused by power failure/outage.

Umbrella: Overlays your other insurance products to increase your liability coverage.

A shorthand expression for “bodily injury.” Commonly covered on both commercial auto polices as well as contractors insurance.

Guarantees an owner, the “oblige,” that the accepted contractor will actually undertake the work and that the contractor will furnish performance, payment, and, perhaps, maintenance bonds — or that the contractor will pay the owner the difference between the amount of the contractor’s accepted bid and the bid of another contractor who has to be called in to complete the project. A bid bond may be required of a contractor in order to submit a bid for a project. The bid bond protects the obligee in the event that the winning contractor is unable to take the job after securing the bid reimburses them the difference between the principal’s bid and the next lowest bidder. If the contractor has the winning bid, the bid bond will convert into a performance bond.

A type of insurance policy that a bond issuer purchases that guarantees the repayment of the principal and all associated interest payments to the bondholders in the event of default. Bond issuers buy insurance to enhance their credit rating to ‘AAA’ in order to reduce the amount of interest that it needs to pay.

Broad form coverage contains everything that’s in the Basic Form and adds protection from a few more perils, including breakage of glass that is part of a building or structure, falling objects, weight of snow or ice, and water damage. Again, these terms are defined in the policy and again, exclusions are listed.

This coverage extension is of great value to the general contractor as respects “completed operations” property damage liability claims. Without it, the normal Comprehensive General Liability policy will not respond for “completed operations” claims (i.e., claims rising out of work performed on behalf of the insured by subcontractors or employees). With it, this exposure is covered.

Regarding contractors insurance liability coverage’s, these coverage’s will automatically apply to “. . . any affiliated, associated, allied or subsidiary company or entity (including subsidiaries thereof), now held or hereinafter acquired or constituted . . .”

This is a property policy designed to provide coverage for buildings while under construction. It covers the contractor’s interest in materials at the job site before they are installed, materials in transit intended for the job and the value of the property being constructed until it is completed and accepted by the owner. Indemnifies for loss of or damage to a building under construction. Insurance is normally written for a specified amount on the building and applies only in the course of construction. Coverage customarily includes fire and extended coverage and vandalism and malicious mischief. Builders risk coverage can be extended to a “special” form as well. The builders risk policy also may include coverage for items in transit to the construction site (up to a certain percentage of value) and items stored at the site. The Builder’s Risk policy is actually a form of inland marine insurance. It incorporates similar “special form” coverage to that used in a commercial property policy. This means that the policy will specifically list exclusions, or what is not covered. Basic perils such as fire, wind storm, lightning, hail, theft and vandalism are all included. Limited coverage is provided for collapse. Standard exclusions include earthquake, employee theft, and water damage, weather damage to property in the open, war, government action, contract penalty, voluntary parting and mechanical breakdown. An important exclusion which should be read in its entirety excludes coverage for damage resulting from faulty: design, planning, workmanship and materials. The intent is to only provide coverage for sudden and accidental events, not poor construction.<Read More>

There are three basic parts of every commercial auto insurance policy:

1. Physical damage insurance – includes collision insurance, and either comprehensive coverage or coverage that specifies the loss you might incur

2. Liability insurance – includes bodily injury, property damage, uninsured motorist and under-insured motorist

3. Other coverage’s – can be added to your commercial car insurance policy. These include medical payments, towing and labor, rental reimbursement, and auto loan or lease gap coverage. These are not mandatory and can be added to your business car insurance policy based on the company’s budget and ability to self-insure some losses.

Insures your businesses’ income while your establishment is in repair for a covered loss.

Commercial General Liability Insurance Protects Your Business From Common Liabilities. Your business faces liabilities every day. The only way to protect your assets is to carry adequate business liability insurance. A Commercial General Liability (CGL) insurance policy is the first line of defense against many common claims.

Business Liability Insurance protects your business against financial loss resulting from claims of injury or damage caused to others by you or your employees. (Some coverage’s may not be available on all policies or in all states.)

• Automatic Additional Insured. Coverage is automatically provided when required in a written contract, agreement or permit.
• Personal and Advertising Injury. Covers you for certain offenses you or your employees commit in the course of your business, such as libel, slander, disparagement, or copyright infringement in your advertisements.
• Employment Practices Liability. Covers claims, including legal defense costs, for certain employment-related lawsuits brought against you by your employees or job applicants ($5,000 limit where available).
• Defense Costs. Pays legal expenses for certain liability claims brought against your business regardless of who’s at fault.
• Medical Expenses. Pays the applicable medical costs if someone is injured and needs medical treatment due to an accident on your premises.
• Premises and Operations Liability. Provides coverage for bodily injury and property damage sustained by others at your premises or as a result of your business’ operations.
• Tenant’s Liability. Protects your business against claims of damage due to fire or other covered losses caused by you to premises that you rent.

Your non-fixed property, tenant finish and catering equipment.

An expression common to contractors insurance liability contracts. It refers to exclusion in the policy eliminating coverage for damage to property of others that is in the insured’s “care, custody, or control.” The insured has a bailee relationship to the property, in other words, making the insured liable for the care of the property beyond damage caused by negligence.

A written description of contractors insurance in effect as of the date and time of the certificate. The certificate does not ordinarily confer any rights on the holder, i.e., the issuing insurer does not promise to inform the holder of change in or cancellation of coverage.

Where young children go, accidents follow, so it’s crucial to choose the right child care insurance program for your center. The right program fully protects you when the unexpected occurs–whether it’s a burst water pipe, a child’s fall from the jungle gym, or a windstorm.

The right program also protects all types of licensed child care centers, including:

• Child and infant day care centers
• Before- and after-school programs
• Preschools
• Nursery schools
• Montessori schools

• A highly experienced crisis response team, which may be called in to help you in serious or crisis situations. We sincerely hope you never experience a crisis, but if you do, Markel’s team of caring professionals is available to help you through it.
• General liability coverage that protects you if someone claims you caused their injury, and pays to vigorously defend you if you are sued. We also offer hard-to-find liability coverage’s, such as sexual abuse/molestation, child care providers/teachers professional, and corporal punishment.
• Property coverage that covers you whether you rent or own your center. Our coverage is on a special cause of loss basis, which means you’re covered for events like fire, windstorms, and frozen pipes.
• A professional claims team that, if an accident occurs, handles your claim promptly, with sympathy and tact. Our claims associates are experts in successfully handling claims involving children.
• Our Safety 1st education program, which offers innovative risk management advice to improve safety at your center. We also offer discounted background checks for all your employees and volunteers.

A written description of contractors insurance in effect as of the date and time of the certificate. The certificate does not ordinarily confer any rights on the holder, i.e., the issuing insurer does not promise to inform the holder of change in or cancellation of coverage.

The expense of adjusting a claim, such as investigation and attorneys’ fees. It does not include the cost of the claim itself.

A type of contractors insurance that responds only to claims for injury or damage that are brought (to the insurer) during the policy period (or during a designated extended reporting period beyond expiration). This development was in response to “long tail” claims, such as those related to asbestosis injury, carrying over many years and multiple layers of coverage limits. However, most public liability policies are written on an “occurrence” basis, covering injury or damage occurring during the policy period even if a claim is brought months or even years later. California statute of limitations is ten years.

Co-insurance is an arrangement by which the insured, in consideration of a reduced rate, agrees to carry an amount of insurance equal to a percentage of the total value of the property insured. An example is if you have guaranteed to carry insurance up to 80% or 90% of the value of your building and/or contents, whatever the case may be. If you don’t, the company pays claims only in proportion to the amount of coverage you do carry.

If you’re considering new business auto coverage, it’s important to understand the basic elements of a business auto policy. In many ways, it’s similar to your personal auto policy. But there are differences you should understand as you consider your business auto policy options. After all, the more you know, the easier it is to compare coverage — and make an informed choice.

A business auto policy can protect your business and its employees from financial losses resulting from an accident or other unforeseen incident. These basic terms and ideas will help you compare and contrast options before making a decision on auto insurance for your business.

If you have only one form of business insurance, it is most likely Commercial General Liability. CGL policies cover claims in four basic categories of business liability:

• Bodily Injury
• Property Damage
• Personal Injury (including slander or libel)
• Advertising Injury

In addition to covering the claims listed above, Commercial General Liability policies also cover the cost to defend or settle claims – even if the claims are fraudulent. Commercial General Liability enables your business to continue operations while it faces real or fraudulent claims of certain types of negligence or wrongdoing. The contractor’s insurance company has the right to defend any suit against the insured seeking damages on account of such bodily injury or property damage, even if any of the allegations of suit are groundless, false or fraudulent, and to make such investigation and settlement of any claim or suit as it deems expedient. However, the company is not obligated to pay any claim or judgment or to defend any suit after applicable limit of the company’s liability has been exhausted by payments of judgments or settlements.

Earthquake insurance can be handled through a separate policy or an endorsement to Basic, Broad or Special Form coverage. Sometimes, it’s an add-on to your home insurance quote. Insurance companies typically state deductibles in an earthquake endorsement as a percentage, such as 10%, rather than a dollar amount. This means that the higher your policy limit, the bigger deductible. Flood insurance, by contrast, is usually handled through a separate policy called Difference in Conditions.

The BPP provides coverage for direct physical loss to buildings and/or contents as described in the policy. Separate sections with distinct limits of insurance are available for both buildings and contents to account for differing needs of insured’s. Some insured’s will be tenants who do not need building coverage. Others will be landlords who have limited or no need for contents coverage. Many insured’s, of course, will need both in varying degrees.

Special form policies are constructed differently than Basic and Broad Form policies and offer wider and slightly more expensive coverage. Instead of listing specific covered perils such as fire and lightning, Special Form policies simply say that your business property is covered against all risks of physical loss unless the policy specifically excludes or limits the loss. This type of policy offers the most protection. For example, it’s a convenient way to insure against loss by theft, which isn’t covered by Basic and Broad Form policies.

If you need additional coverage and if you’re concerned about property loss caused by perils not covered or in the case of a Special Form policy, excluded from an insurance policy, you can often get the additional coverage through an endorsement to the policy by paying additional premium. For instance, such coverage is usually available for losses due to earthquake and floods.

Special form policies are constructed differently than Basic and Broad Form policies and offer wider and slightly more expensive coverage. Instead of listing specific covered perils such as fire and lightning, Special Form policies simply say that your business property is covered against all risks of physical loss unless the policy specifically excludes or limits the loss. This type of policy offers the most protection. For example, it’s a convenient way to insure against loss by theft, which isn’t covered by Basic and Broad Form policies.

If you need additional coverage and if you’re concerned about property loss caused by perils not covered or in the case of a Special Form policy, excluded from an insurance policy, you can often get the additional coverage through an endorsement to the policy by paying additional premium. For instance, such coverage is usually available for losses due to earthquake and floods.

This type of insurance on your business auto policy pays for damage to your vehicle from causes other than an accident. These instances may include theft, flood, vandalism, earthquakes, fire or damage from a bird or animal.

There are many types of contractor bond and many of them will not apply to your project, however almost every big construction contract will require a Performance and Payment bond. A Performance and Payment bond assures the obligee that they will be compensated should the contractor fail to complete work on a project or if they should fail to pay for materials and services required for the project. Typically these bonds are claimed when a contractor has to declare bankruptcy.

Another common type of contractor bond is a bid bond. A bid bond is required when a contract is being offered to more than one contractor. The bid bond is claimed if the winning bidder later refuses to take the contract. Compensation equals the difference between the winning bid and the next highest bid.

Applying for a contractor bond is not an easy process and for this reason it is usually a good idea to consult a good bond agent about what kind of bond you need and what the process will involve.

Sureties are taking a big risk when they cover big projects. As these projects can cost millions of dollars, sureties need to know that your business is stable before they issue you a contractor bond.

It is not uncommon for sureties to request financial statements dating back at least three years. They perform background checks on your business, and may also perform personal background checks as well.
It is important that you choose the right contractor bond and complete the process carefully, construction can be an unpredictable industry and you need to be prepared for any eventuality.

There are dozens of different types of bonds which are divided into two different categories: contract bonds and commercial bonds.

Why You Need It
If you own a contracting business, you know that even with the best of planning, things don’t always work out perfectly. Human error, faults in materials, even “acts of God” can contribute to accidents and injuries on job sites every year. That’s why every contractor needs solid, reliable insurance coverage tailored to their specific and changing needs.

What It Does
Liability insurance is defined as an insurance policy that offers protection against third-party claims of property damage, injury or bodily harm, loss of life or limb, or negligence. General liability insurance offers blanket coverage which includes both “public” and “product” liability, meaning that coverage extends to direct or indirect actions of the insured (and the insured’s employees) which result in loss or damage, as well as products or structures manufactured by the insured which cause loss or damage due to a fault in the product.

State Requirements
General liability insurance is a state requirement for most contractors, even sole proprietors; additionally contractors with employees are required to obtain worker’s compensation insurance. The levels of coverage differ depending on the state and sector of construction.

Requirements for state and municipal contracts may be different than those for contracts with private parties. The minimum coverage recommended for most contractors and situations is $2 million.

Although in most situations a contractor can bid on a job without proof of insurance, an original proof of insurance certificate is required before work may begin. With a standard $2 million general liability policy in place, contractors can avoid delays at the beginning of a project.

It is common in construction and other agreements (written or oral) for one party to “assume” the liability of another. This is sometimes referred to as a “hold harmless” agreement. The extent to which one holds another harmless varies from contract to contract, job to job, etc. To assume the liability of another, regardless of extent, is a voluntary undertaking which increases your exposure to loss. A standard Commercial General Liability policy does cover this additional exposure subject to certain exclusions.

An indirect consequence of direct loss to property. Business income may be lost when a store burns down, or frozen goods may spoil when windstorm causes an interruption of power. Consequential or indirect loss is not generally insured by policies covering direct damage (i.e., by fire or wind as in these examples), but insurance is readily obtainable separately for most such consequential exposures — business income coverage being among the most common.

A bond that guarantees the owner of a building under construction that it will be completed. If the contractor cannot finish the work, the insurer is obligated to see that the work is performed.

In contractors liability insurance, the “trigger” is the event that brings coverage into play. It may be either an occurrence of bodily injury or property damage; or, in a form with a claims-made trigger, the formal making of a claim.

Basic form coverage includes losses caused by fire, lightning, explosion, windstorm or hail, smoke, aircraft or vehicles but not loss or damage caused by vehicles you own or operate in the course of your business, riot, vandalism, sprinkler leaks, sinkholes and volcanoes. The policy defines these perils and lists some exclusion such as nuclear hazards, power failures or mudslides.

Broad form coverage contains everything that’s in the Basic Form and adds protection from a few more perils, including breakage of glass that is part of a building or structure, falling objects, weight of snow or ice, and water damage. Again, these terms are defined in the policy and again, exclusions are listed.

Special form policies are constructed differently than Basic and Broad Form policies and offer wider and slightly more expensive coverage. Instead of listing specific covered perils such as fire and lightning, Special Form policies simply say that your business property is covered against all risks of physical loss unless the policy specifically excludes or limits the loss. This type of policy offers the most protection. For example, it’s a convenient way to insure against loss by theft, which isn’t covered by Basic and Broad Form policies.

If you need additional coverage and if you’re concerned about property loss caused by perils not covered or in the case of a Special Form policy, excluded from an insurance policy, you can often get the additional coverage through an endorsement to the policy by paying additional premium. For instance, such coverage is usually available for losses due to earthquake and floods.

Earthquake insurance can be handled through a separate policy or an endorsement to Basic, Broad or Special Form coverage. Sometimes, it’s an add-on to your home insurance quote. Insurance companies typically state deductibles in an earthquake endorsement as a percentage, such as 10%, rather than a dollar amount. This means that the higher your policy limit, the bigger deductible. Flood insurance, by contrast, is usually handled through a separate policy called Difference in Conditions.

In the event of claim by one insured for which another insured covered by the same policy may be held liable, this endorsement covers the insured against whom the claim is made in the same manner as if separate policies had been issued. However, it does not operate to increase the insurance company’s overall limit of liability.

The policy will pay your expenses to remove debris of Covered Property. This debris must result from a loss that is covered under this form.

Disability Insurance also called DI or disability income insurance is insurance that insures an earned income against the risk that disability will make working impossible.

Document Detail: Disability Insurance, often called DI or disability income insurance, is a form of insurance that insures the beneficiary’s earned income against the risk that disability will make working (and therefore earning) impossible. It includes paid sick leave, short-term disability benefits, and long-term disability benefits. Disability is defined as any mental or physical illness or injury which prevents you from performing your regular or customary work.

Coverage applicable to employees or executives of a company or any other person who is supplied a company vehicle, but who does not own a personal vehicle, thereby not having personal automobile coverage. An endorsement may be added to the automobile policy of the company that furnishes the automobile, giving protection while the named individual or a member of his family is driving a car borrowed from a third party (other than the vehicle named in the policy). Individuals who are owners of the company qualify for the “individual named insured” endorsement, which includes family coverage. The drive other car coverage is usually added at little additional premium charge.

A Standard property insurance policy leaves something to be desired in addressing special EDP-related exposures. Electronic data processing equipment and its software is particularly susceptible to damage from electrical or magnetic disturbance and changes in temperature or humidity – perils which are excluded in a standard “special” perils property policy. Except for prepackaged software programs, which are typically covered on an actual cash value basis, coverage for programs and data in a standard property policy is essentially limited to replacement with blank tapes or diskettes plus transcribing expense. Finally business interruption coverage in connection with damaged EDP Media {not equipment} is limited to 60 days from the date of loss or the time when the other damaged property is repaired, whichever is longer. Therefore, if the building repairs are complete, but normal operations cannot resume because replacement computer programs, data or media are not readily available, an uninsured business interruption loss may result. The best way to resolve these coverage inadequacies for EDP exposures is to buy a special EDP policy. Typically, EDP policies provide “special” peril coverage similar to that provided by “special” property forms, PLUS coverage for all electrical and magnetic damage, mechanical breakdown and often temperature and humidity changes as well. Some insurers include these perils in the basic form, while others make them available by endorsement for an additional premium. Usually these broader coverages are subject to a higher deductible as well. Valuation can be on either a replacement cost or actual cash value basis, and coverage may be available on a blanket as well as a scheduled basis. Media coverage includes the cost to reconstruct software developed in-house {subject to the limit of liability selected for the coverage}, if necessary. Perhaps most importantly, an EDP policy will respond appropriately to extra expense or income loss from the loss of EDP equipment, programs and data, provided that these coverage options in the policy have been elected and adequate limits of liability have been established.

Provides protection for problems that are not typically handled by your commercial auto insurance policy, such as being locked out of your car, needing a battery re-charged or inflating a flat tire.

Very important for establishments that are high energy or serve liquor. Covers your business, management and employees from sexual harassment, wrongful termination and other civil claims.

Insures your restaurant/bar/brewery equipment against property damage/loss.

Coverage for liability resulting from errors or omissions in the performance of professional duties. Applicable as a general rule to professional business activities such as banking, accounting, law, insurance and real estate. Contractors insurance brokers are required to carry this type of coverage.

Coverage that applies on top of underlying insurance that is primary, i.e., that pays until its coverage limit is exhausted at which point the excess coverage takes over.

Provides towing coverage for pick-up trucks that’s not part of your standard business auto policy. This insurance also covers towing, jump starts, and minor roadside repairs.

Why do I need fidelity bond insurance? That’s a common question we get from business owners. They do not believe that their business will have an incident related to employee dishonesty. However, employee fraud is more common than you might think. According to the Association of Certified Fraud Examiners (ACFE), fraud and embezzlement account for losses to the tune of $400 billion per year. This is nearly 6% of total annual revenue. For small companies, theft and fraud can prove to be a major setback, as they can’t afford extensive safeguards and aren’t large enough to absorb losses.

Fidelity bond insurance protects the employer from financial loss in the event of fraudulent activities of an employee or group of employees. The loss could typically be from theft of money, securities or other property of the employer. In addition, employers are protected from covered losses due to burglary and destruction. Apart from covering employee thefts, robbery and safe burglaries, fidelity bond insurance coverage can also protect against forgery or alteration, funds transfer fraud, computer fraud, and credit card fraud.

However, fidelity bond insurance does not cover the following – liability that arises from poor workmanship, injuries during the job or at the work place, bail bonds or court bonds for the legal system, contract bonds, performance bonds, or license bonds for the self-employed, and money order and counterfeit fraud.

Many a times when a client decides to do business with you, they want to know that you are covered by fidelity bond insurance, mitigating any losses they might incur as a result of dishonesty on the part of your employees. This policy instills confidence in the client so that he can conduct business with you comfortably. So, fidelity bond insurance provides you with dual benefits – it protects your business AND it helps to gain the confidence of your clients.

Fire Alarm Credit – Policyholders may receive a discount for having protective items such as fire/burglar alarms and/or fire sprinkler systems.

When the fire department is called to save or protect Covered Property from a Covered Cause of Loss, the policy will pay up to $10,000 for your liability for fire department service charges.

Public liability policies routinely exclude coverage for damage to property in an insured’s care, custody, or control. This leaves a big gap in a tenant’s coverage, a gap partially filled by an exception in the commercial general liability policy that restores limited coverage for fire damage to the landlord’s building.

A contractors insurance policy may have more than one party named as insured. In such cases, the first named insured attends to policy “housekeeping,” i.e., pays premiums, initiates (or receive notice of) cancellation, or calls for interim changes in the contract. This is spelled out in commercial policies in the “common policy conditions.”

Covers you for overflow of water that submerge land Flood coverage is excluded under homeowners policies and many commercial property policies. However, flood damage is covered under the comprehensive portion of an auto insurance policy.

Insurance typically purchased by automobile dealerships and repair shops that covers property damage and bodily injury resulting from the operations of an auto garage. It typically does not cover accidents and damage to cars that are brought into the shop, as there is a separate insurance contract for such cases, but it does cover vehicles that are owned by the shop.

While we will get into this subject in more detail later, think of the Garage Policy as a combination Business Auto Coverage form and Commercial General Liability Coverage form. A typical garage business has an auto exposure (owned, non-owned and hired) as well as premises/operations, contractual and products/completed operations exposures. Rather than writing two separate policies, the Garage policy allows you to combine the coverages into one form.

Section II of the Garage form covers two liability exposures: “Garage Operations” – Other Than Covered “Autos” (CGL exposures) and “Garage Operations” – Covered “Autos” (Auto exposure) for “bodily injury” and “property damage”(both exposures), and “covered pollution cost or expense” (auto exposure only).

The policy defines “garage operations” as the ownership, maintenance or use of locations for garage business and that portion of the roads or other accesses that adjoin these locations.

It includes the ownership, maintenance or use of covered autos (designated by coverage symbols) and all operations “necessary or incidental” to a garage business. What is “necessary and incidental” to garage operations is often subject to discussion with the insurer. For example, would a restaurant attached to a new car dealership be “necessary and incidental” to the service station? The underwriter would probably feel that it is not and require a separate CGL for the restaurant exposure.

“Auto” is defined as a land motor vehicle, trailer or semitrailer. Unlike the CGL and Business Auto Coverage forms, the definition does not mention that the auto has to be designed for use on public roads, nor does it make reference to “mobile equipment”. This makes the Garage policy definition of “auto” very broad indeed. What is considered a covered auto is determined by the selection of a coverage designation symbol. The Garage form also adds two additional symbols – symbols 30 and 31 – for exposures which are unique to garage operations. Symbol 30 covers any customer’s auto left with the named insured for service, repair, storage or safekeeping. This symbol would be used to “trigger” the garagekeepers coverage.

Symbol 31 covers dealers “autos” and “autos” held for sale by non-dealers or trailer dealers. This is used for physical damage coverage. Since the liability coverage part covers both CGL-type exposures and auto-type exposures, the policy includes two definitions of “who is an insured”. “Insureds” for covered autos include the named insured, permissive users, and anyone liable for the acts of an insured. “Insureds” do not include the owner of a borrowed or hired auto, employees while using employee owned vehicles, someone working in an auto business, dealer’s customers (unless they have no available insurance) or a partner while using a vehicle owned by the partner. “Insureds” for the garage operations other than autos include the named insured, and the named insured’s partners, employees, directors or shareholders while acting within the scope of their duties. This is much more restrictive than the CGL definition of “insured” because it does not include real estate managers, legal representatives, mobile equipment operators or newly acquired or formed organizations.

As was previously mentioned, the garage operations – other than auto coverage covers liability for “bodily injury” and “property damage”. Unlike the CGL policy, it does not cover “personal injury” or “advertising injury”. These coverages would have to be added by endorsement.

Excluded from coverage would be: expected or intended injury; contractual liability (except “insured contracts”); workers compensation; employee indemnification and employer’s liability; fellow employee; care, custody or control; leased autos (except autos rented to customers when servicing their vehicles); pollution; racing; watercraft or aircraft; defective products; work you performed; loss of use; products recall; war; and liquor liability.

The garage operations coverage – other than autos is subject to an accident limit and an annual policy aggregate limit. Unlike the CGL, there is not a separate products/completed operations aggregate. Because the garage liability coverage is not as broad as the CGL policy, it is recommended that the Broadened Coverage – Garages endorsement (CA 25 14) be added. This endorsement adds coverage for: personal and advertising injury; host liquor liability; fire legal liability; incidental medical malpractice; non-owned watercraft; spouses as insureds; coverage for newly acquired garage businesses (90 days); and limited worldwide liability coverage. When added, these coverages become subject to the policy aggregate.

As previously mentioned, the Garage Operations – Auto coverage part covers “bodily injury”, “property damage” and “covered pollution cost or expense” arising out of the ownership, maintenance or use of a covered auto.

“Covered pollution cost or expense” would cover “bodily injury” or “property damage” caused by the leakage of fuels, lubricants, fluids, exhaust gases or other similar pollutants that are “needed for or result from the normal electrical, hydraulic or mechanical functioning” of the covered auto if the pollutants are released from an auto part designed to hold, store, receive or dispose of the pollutants.

For example, if a covered auto overturns as the result of an accident and gasoline from the gas tank leaks out, the policy would cover any resulting BI or PD. Also covered would be third party liability if an insured causes another vehicle to discharge pollutants as the result of an accident. The policy does exclude damage caused by pollutants which are being transported by the insured or which are being stored in the covered auto. The other exclusions which apply to garage operations also apply to the auto exposure. The auto coverage is subject to an accident limit which is separate from the garage operations accident limit. The auto liability coverage is not subject to the aggregate.

Garagekeepers coverage provides protection for damage to customer’s vehicles due to the insured’s legal liability. Coverage options are comprehensive (anything other than collision or overturn), specified causes of loss (fire, lightning, or explosion; theft; or mischief or vandalism) and collision or overturn. This coverage is needed because of the “care, custody or control” exclusion in the liability section of the policy. It covers the insured’s “bailees” exposure. Because the basic policy coverage is based on the “legal liability” of the insured for damage to customer’s vehicles, the customer must prove that the insured was negligent for the damages. This can create a loss of goodwill if coverage is denied because it is determined that the insured is not negligent for the damage.

For this reason, two direct coverage options are available: direct excess and direct primary. Both coverages apply without regard to liability. With direct excess, coverage applies in excess of the vehicle owner’s coverage. With direct primary, the garage insured would share the loss with the auto owner’s insurer.

With Garagekeepers coverage, the insured must select a limit for each location. At times, the exact limit needed can be difficult to determine. One way to determine the limit is to consider the average value of the vehicles in the insured’s care times the average number of vehicles in the insured’s care at a given time. For example, if the average value of customers vehicles is $20,000 and the average number of vehicles on hand is 10, a limit of $200,000 would be selected.

There is no “coinsurance-type” penalty for underinsurance, but care should be used in the selection of the limit because a catastrophic total loss (like a tornado) could leave the insured without adequate coverage. Because Garagekeepers coverage is physical damage coverage, deductibles apply to covered losses. For comprehensive or specified causes of loss coverages, loss by theft or by vandalism or malicious mischief is subject to a deductible for each auto and is also subject to a maximum deductible for all such loss in one event. The collision deductible applies to each auto, regardless of the number of autos involved in the collision loss. The maximum limit would be the location limit.

Garagekeepers coverage provides protection for damage to customer’s vehicles due to the insured’s legal liability. Coverage options are comprehensive (anything other than collision or overturn), specified causes of loss (fire, lightning, or explosion; theft; or mischief or vandalism) and collision or overturn. This coverage is needed because of the “care, custody or control” exclusion in the liability section of the policy. It covers the insured’s “bailees” exposure. Because the basic policy coverage is based on the “legal liability” of the insured for damage to customer’s vehicles, the customer must prove that the insured was negligent for the damages. This can create a loss of goodwill if coverage is denied because it is determined that the insured is not negligent for the damage.

For this reason, two direct coverage options are available: direct excess and direct primary. Both coverages apply without regard to liability. With direct excess, coverage applies in excess of the vehicle owner’s coverage. With direct primary, the garage insured would share the loss with the auto owner’s insurer.

With Garagekeepers coverage, the insured must select a limit for each location. At times, the exact limit needed can be difficult to determine. One way to determine the limit is to consider the average value of the vehicles in the insured’s care times the average number of vehicles in the insured’s care at a given time. For example, if the average value of customers vehicles is $20,000 and the average number of vehicles on hand is 10, a limit of $200,000 would be selected.

There is no “coinsurance-type” penalty for underinsurance, but care should be used in the selection of the limit because a catastrophic total loss (like a tornado) could leave the insured without adequate coverage. Because Garagekeepers coverage is physical damage coverage, deductibles apply to covered losses. For comprehensive or specified causes of loss coverages, loss by theft or by vandalism or malicious mischief is subject to a deductible for each auto and is also subject to a maximum deductible for all such loss in one event. The collision deductible applies to each auto, regardless of the number of autos involved in the collision loss. The maximum limit would be the location limit.

Excluded are: contractual obligations; theft by an insured; defective parts; faulty work; loss to sound reproducing equipment (unless permanently installed); loss to tapes, records, etc.; loss to other sound receiving equipment (CB’s, mobile radios, telephones or scanning monitors unless installed in the dash or console) and radar detection equipment.

As you can see, the difference between garage liability coverage and garagekeepers coverage is the difference between liability insurance and physical damage insurance. One covers the insured’s liability for operations and autos and the other covers damage to customer’s vehicles. All garage risks need both coverages to properly insure their loss exposures.

Insures against trip/slip and fall, food poisoning, injury on premises, property damage, etc.

General Liability insurance covers claims of bodily injury or other physical injury or property damage. It is frequently offered in a package with Property insurance to protect your business against incidents that may occur on your premises or at other covered locations where you normally conduct business.

Homeowners policy that pays the full cost of replacing or repairing a damaged or destroyed home, even if it is above the policy limit. Homeowners insurance also covers additional living expenses. Known as Loss of Use, this provision in the policy reimburses the policyholder for the extra cost of living elsewhere while the house is being restored after a disaster. The liability portion of the policy covers the homeowner for accidental injuries caused to third parties and/or their property, such as a guest slipping and falling down improperly maintained stairs. Coverage for flood and earthquake damage is excluded and must be purchased separately..

Hired auto that may be “hired” to operate for the insured, such as a crane, dump truck, concrete truck, etc. Vehicle may not be owned by the named insured. Commonly purchased by a contractor under there commercial auto policy.

Covers comprehensive and collision damage to a leased or rented vehicle, as well as additional contractual obligations to the leasing or rental company.

A contractual assumption by one party of the liability exposure of another. Lease agreements, for example, commonly require the tenant to hold the landlord harmless for bodily injury or property damage experienced by others on the premises.

The typical homeowners insurance policy covers the house, the garage and other structures on the property, as well as personal possessions inside the house such as furniture, appliances and clothing, against a wide variety of perils including windstorms, fire and theft. The extent of the perils covered depends on the type of policy. An all-risk policy offers the broadest coverage. This covers all perils except those specifically excluded in the policy.

Identity Theft – This endorsement covers up to $15,000 for expenses incurred by the insured as a direct result from identity theft. The policy deductible is $250.

When insurance policies are written on an “indemnification” basis, the insurance company will reimburse the insured for claim costs already paid. Technically, the insured must not only suffer a loss, but must also pay the loss before being reimbursed (indemnified) by the company.

If you’re working as an independent contractor in any aspect of the construction industry, you’re probably aware that you need insurance coverage over and above what your general contractor is required to carry. In fact, many independent contractors are under-insured, simply because they don’t know how much liability coverage they truly need.

Independent contractor liability insurance is in many ways similar to the insurance policies that general contractors carry. General liability insurance coverage with a limit of at least $1 million is not only recommended, but mandatory for many independent contractors. Also, some form of disability insurance is recommended, in case of an injury on the job. In many states, general contractors are not required to provide worker’s compensation or disability insurance coverage for non-payroll employees. Also, an independent contractor’s liability insurance portfolio should include commercial auto insurance or enhanced personal auto insurance coverage, as well as inland marine insurance if the independent contractor is required to transport or ship their own equipment from job site to job site.

Depending on your area of expertise, it may also be advisable to add professional liability coverage to your independent contractor’s liability insurance. Professional liability coverage, unlike general liability, covers professional errors and omissions. In certain states or for certain jobs, you may be required to carry this insurance, especially if the majority of your work is in a technical field, like engineering.

If you are working for a general contractor, the issue of bonding may be raised. There are several bonds that may apply to the independent contractor. Subcontractor bonds offer the assurance that the independent contractor will complete the contracted work on schedule and to the satisfaction of the general contractor. The bond premium for these bonds is usually paid by the independent contractor and may in many cases be obtained through the independent contractor’s insurance agency. Conversely, contract bonds protect the independent contractor from nonpayment on the part of the general contractor, and premiums are paid by the general contractor. Some projects may require independent contractors to carry employee dishonesty bonds, also known as fidelity bonds, to protect the general contractor from theft of monies or documents. Usually, bond premiums cost about one to three percent (1-3%) of the total bond amount, although bonds considered high-risk may have premiums as high as five to twenty percent (5-20%). No matter what area of the construction industry you serve, you can’t afford to be under-insured.

Inland marine insurance indemnifies loss to moving or moveable property and is an outgrowth of ocean marine insurance. Historically, ocean marine insurance held the transporter responsible for property loss before, during, and after the completion of the voyage. In the 1800’s, the non-ocean portion of the journey grew as cargoes were transferred to barge, etc., and the term “inland marine” was coined. Inland marine policies became known as “floaters” since the property to which coverage was originally extended was essentially “floating.” Contractors typically cover their construction tools under this policy.

A legal doctrine whereby a creditor or claimant may demand payment or sue one or more of the parties separately, or all of them together.

Liability insurance in your commercial auto policy covers bodily injury to others and any property damage to another vehicle if you are at fault in an accident. Bodily injury pays others’ medical costs and lost wages, and your legal expenses if a lawsuit is brought against you due to an accident.

The most the insurer will pay for loss or damage in any one occurrence is the limit of insurance stated in the policy declarations. Limits are stated for each location. For a reporting form policy, the limit is the amount shown on the most recent report. Claims are settled on an Actual Cash Value basis for all builders’ risk losses. This is usually not a problem since the property being installed is new and not depreciated.

Insures against liquor liability claims from over-serving, alcohol poisoning, etc.

All methods taken to reduce the frequency and/or severity of losses including exposure avoidance, loss prevention, loss reduction, segregation of exposure units and noninsurance transfer of risk. A combination of risk control techniques with risk financing techniques forms the nucleus of a risk management program. The use of appropriate insurance, avoidance of risk, loss control, risk retention, self insuring, and other techniques that minimize the risks of a business, individual, or organization.

The ratio of incurred losses and loss-adjustment expenses to net premiums earned. This ratio measures the company’s underlying profitability, or loss experience, on its total book of business.

The estimated liability, as it would appear in an insurer’s financial statement, for unpaid insurance claims or losses that have occurred as of a given evaluation date. Usually includes losses incurred but not reported, losses due but not yet paid, and amounts not yet due. For individual claims, the loss reserve is the estimate of what will ultimately be paid out on that claim.

Net paid losses during the current year plus the change in loss reserves since the prior year end.

Pays for medical expenses if you or your passengers’ health care insurance does not cover the costs.

A contractors general liability coverage in which the insurer reimburses without regard to the insured’s liability, the insured and others (as specifically provided in the policy) for medical and funeral expenses incurred by such persons as a result of bodily injury or death sustained by accident under the conditions specified in the policy.

An insurance policy covering one subject of insurance, as opposed to a combination or multi-line policy.

A “peril” is defined as a cause of damage or loss. To be covered for damage or loss under a “basic” contract, the damage or loss must be caused by a peril that is “named” or listed in the contract. Consequently, if damage or loss is caused by a peril that is not named, there is no coverage. In addition, the contract’s exclusions must also be considered in determining coverage. In a “special” contract, it is not necessary to name or list the insured perils since the intent is to cover all risk of damage or loss. Here, too, the contact’s exclusions must be considered; however, the “special” form of coverage provides a much greater coverage quality. Note that “special” coverage should not be construed to mean “all loss” coverage. Certain types of loss are definite and therefore not insurable.

This coverage can insure your new vehicle if it’s in an accident resulting in a total loss, without a deduction for depreciation.

This term signifies an auto that is neither owned, hired, nor borrowed by the insured under a commercial auto policy. Employees’ cars used in company business are commonly classified this way. The employer’s auto liability cover for use of non-owned autos is covered by entry of symbol 1 (“any auto”) or symbol 9 (“non-owned autos”) on the declarations page. They may be an additional premium charged for this coverage.

This term means an accident, including continuous or repeated exposure to conditions, which results in bodily injury or property damage neither expected nor intended from the standpoint of the insured. In some lines of business, such as contractors insurance liability, an occurrence is distinguished from accident in that the loss doesn’t have to be sudden and fortuitous and can result from continuous or repeated exposure which results in bodily injury or property damage neither expected not intended by the insured.

Ordinance or Law Coverage applies whether you suffer a partial or total loss to the structure. This valuable coverage can save you thousands of dollars in upgrades you would otherwise pay out of pocket. Depending on the state where your home is located, you can select Ordinance or Law limits of 10, 25 or 50 percent of your Coverage A Dwelling limit. For example, if the Dwelling amount on your home is $300,000 the 10% option will allow up to $30,000 in upgrades due to building code requirements; the 25% option will allow up to $75,000; and the 50% limit will allow for up to $150,000.

This insurance coverage provides for payment on behalf of the insured of all damages the insured becomes legally obligated to pay due to bodily injury or property damage caused by an occurrence rising from the following:

• Operations performed for the named insured by independent contractors.
• Acts or omissions of the named insured in connection with his/her general supervision of such operations. This does not include maintenance and repair at premises owned by or rented to the named insured, or structural alterations at such premises that do not involve changing the size of or moving buildings or other structures.

Guarantees that the job will be completed.

A policy or an addition to a policy used to cover personal valuables, like jewelry or furs. Valuables Insurance policies include limits on how much they will reimburse the insured for the loss of an individual item or category. These limits can be increased to meet your needs.

Personal Injury – With this endorsement, you can extend the limit of liability on your homeowner’s policy to cover you against libel, slander, and invasion of privacy.

The first policy or coverage to apply. Contrast with Excess insurance. This is a term commonly used in additional insured status for contractors insurance.

Cover your brewery’s product when your patrons take it home.

Liability arising out of the insured’s products or business operations conducted away from the insured’s premises once those operations have been completed or abandoned. An aggregate limit in a contractors insurance policy stipulates the most it will pay for all covered losses sustained during a specified period of time, usually one year.

The liability for bodily injury or property damage incurred by a merchant or manufacturer as a consequence of some defect in the product sold or manufactured or the liability incurred by a contractor after he has completed a job as a result of improperly performed work. The latter described part of products liability is called Completed Operations.

Profit For Rehab Projects, expected profit may be included for coverage. This is allowed at 10% of the purchase price of the shell. This is an option which is added into the total limit of insurance. For example: $60,000 shell price + $50,000 value of improvements + $6,000 profit = $116,000 total insured value.

This coverage extension provides $10,000 for property intended to be installed on the project while at a temporary location. For example, if you have siding at your warehouse intended for installation at an insured location and lose it in a fire, this coverage would respond.

A coverage extension to protect your property from loss while being transported to the job site. The additional coverage limit is $25,000.

If you have a vehicle under repair because of an accident, a standard business auto policy won’t pay for a rental car. This additional coverage will make sure you have a replacement vehicle.

Extended Replacement Cost on Dwelling – This endorsement can be used to increase Coverage A (dwelling) by either 25% or 50 % to better accommodate a customer’s needs

Replacement Cost on Personal Property – This endorsement protects the customer from receiving a depreciated value for their personal property. Instead, contents will be replaced with new items of like kind and quality.

Contractors Insurance liability companies owned by their policyholders. Membership is limited to people in the same business or activity, which exposes them to similar liability risks. The purpose is to assume and spread liability exposure to group members and to provide an alternative risk financing mechanism for liability. These entities are formed under the Liability Risk Retention Act of 1986. Under law, risk retention groups are precluded from writing certain coverages, most notably property lines and workers’ compensation. They predominately write medical malpractice, general liability, professional liability, products liability and excess liability coverages. They can be formed as a mutual or stock company, or a reciprocal.

Coverage is extended to apply to scaffolding, construction forms and temporary structures, but only while they are at a location you have reported.

A provision that insurance applies separately to each insured under the policy.

Water damage from the back-up of sewers and drains is covered for up to $5,000.

Water damage from the back-up of sewers and drains is covered for up to $5,000.

Having sufficient assets–capital, surplus, reserves–and being able to satisfy financial requirements– investments, annual reports, examinations–to be eligible to transact insurance business and meet liabilities.

As in contractors commercial auto insurance, where rather than one liability amount applying on a per-accident basis, separate amounts apply to bodily injury and property damage liability.

Insures your stock for loss caused by power failure/outage.

Special Event Liability Insurance (also referred to as CGL, Commercial General Liability or Spectator Liability) is an insurance policy designed to provide broad protection for situations in which an event holder or concessionaire must defend itself against lawsuits or pay damages for bodily injury or property damage to third parties. Host liquor liability is included if there is no transfer of money for alcohol. This policy also gives protection to the venue and or sponsors of the event by adding them to the policy as an additional insured. Examples, such as a slip and fall or damaged floors are covered by this type of policy. Exclusions do apply.

The policy protects the person or business/organization under whose name it was purchased (the “Named Insured”). Your facility and any vendors for your event can also be added as Additional Insureds.

Your policy includes Host Liquor Liability to protect against alcohol-related accidents. It is an option that can be purchased for an additional premium for covered events that sell and profit from alcohol sales.

Host Liquor Liability Insurance is included with all of our policies and provides protection for the event holder/concessionaire against bodily injury or property damage suits brought by parties injured as a result of an intoxicated guest who was served alcohol at an event you hosted.

A Special Event General Liability Policy must be purchased at least 24 hours before your event starts. It can be purchased up to 1 year in advance of the event date.

Liquor liability is an option you can purchase if you sell and profit from alcohol sales at the covered event. This type of liability insurance provides coverage for bodily injury or property damage for which you may be held liable by reason of: Causing or contributing to the intoxication of any person; or Violating any statute, ordinance, or regulation relating to the sale, gift, distribution, or use of alcoholic beverage.

The state in which the company is incorporated or chartered. The company also is licensed (admitted) under the state’s insurance statutes for those lines of business for which it qualifies.

Amends the valuation clause on a policy to include an amount that is “stated” as the value of the item(s) being insured. Usually, these policies pay the lesser of the ACV of the damaged property, the cost of repairing or replacing the property, or the stated amount.

The right of an insurer who has taken over another’s loss also to take over the other person’s right to pursue remedies against a third party.

A Surety Bond is an agreement subject to the Bond Form. The Bond is usually required for monetary compensation for failure to perform specified acts referenced in the Bond Form. A Surety Bond is a generic name for all bonds. Bonds are usually required by the state or Federal Government; these bonds are called License and Permit Bonds. There are three parts of a Surety Bond, the first is the Obligee. They are the entity requiring the Bond. Second is the principal. The Principal is the person whom will perform the contractual obligations set forth in the Bond Form. The third part is the Surety Company. They are the entity who will be insuring the principal of the obligations referenced in the Bond Form.

Coverage for claims made after a claims-made liability policy has terminated; the extended reporting or discovery period.

Covers you for theft or crime caused by outsiders and your employees.

A TPA is a contractor that adjusts and ad-ministers insurance claims.

A liability contract with high limits covering over top of primary liability coverages and, subject to a self-insured retention (deductible), covering exposures otherwise uninsured. Some general contractors are required to carry an umbrella policy to work for on government jobs.

Coverage for the insured and passengers whenever the at-fault driver in an accident has auto liability insurance with lesser limits than the insured’s. This coverage lies atop “uninsured motorists coverage” or atop the at-fault driver’s low limit automobile liability insurance and provides the insured and passengers with protection equal (usually) to the insured’s own automobile liability cover. If you, or an employee, are involved in an accident with an uninsured motorist, it can cost you plenty. This coverage on your business auto insurance policy pays for your injuries or property damage caused by an uninsured motorist, a driver that does not carry insurance, or, in some states, an unidentified driver.

Unless you live in a “no-fault” state, where each driver’s business auto insurance policy responds to their own losses, this coverage protects you if the “at fault” driver fails to carry enough liability insurance to cover your bills.

The policy providing initial coverage for a claim until its limit of liability is reached and an umbrella or excess policy’s coverage is triggered.

The limits of liability of the policy(ies) underlying an umbrella or excess policy.

Provides “all risk” coverage on “valuable papers,” such as: written, printed, or otherwise inscribed documents and records, including books, maps, films, drawings, abstracts, deeds, mortgages, and manuscripts. It covers the cost of research to reconstruct damaged records, as well as the cost of new paper and transcription.

Once defined as devoid of occupants or contents, a stricter definition is being applied as more and more communities find older buildings of three and four stories that are only one quarter occupied. Property policies impose limitations on coverage of “vacant” buildings so the (changing) definition of vacant property is quite important.

Many contracts, including lease agreements, contain provisions for one party to waive its rights of recovery against another. Such provisions are commonly known as “waivers of subrogation.” This is a request that sometimes contractors receive from state or government jobs.

Water Back up and Sump Overflow – Covers up to $5000 for direct physical loss due to water backing up through sewers or drains and water which overflows from a sump. This is not a flood coverage, which requires a separate policy.

Workers’ compensation is a type of insurance that is required of most businesses as a way to protect employees. When an employee is injured on the job, this insurance kicks in and provides financial benefits for the employee. If you are a business owner, understanding these policies is essential so that you can make sure you are covered against one of your biggest financial risks. <Read More>

A contractors insurance liability coverage specialty focused on contracting risks, at-tempting to manage in a single contract the broad interplay of exposures and interests among owners, general contractors, and subcontractors.