Insurance Online

Tuesday, 8 September 2015

Insurance Online : Recap: Inside Today’s Surplus lines Market

AM Best released a recap of their September 2nd webinar, Inside Today’s Surplus lines Market, in which this author was a participant. A similar Insurance Journal article (here) discussed the Surplus Lines Insurance market. AM Best also released their annual report, titled 2015 Special Report U.S. Surplus Lines – Segment Review (see here). Two quotes: There is an overall healthy level of strong competition going on in the profession today…However, it is an underwriting-driven market that provides some stability. Technology contributes a great deal to the success of the E&S industry…Much of that growth stems from innovation, the hallmark of E&S professionals. Tennant Risk Services is a specialty wholesale broker and underwriting manager, and a NAPSLO member. With unique approach...

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Thursday, 3 September 2015

Insurance Online : On Labor Day Weekend, Put Safety First

Labor Day weekend is upon us, which means one thing – lakes, beaches and backyards will be filled with people attempting to soak up the last of summer’s sun. No matter how you choose to celebrate the holiday weekend, it’s important to make safety a top priority. From fireworks to libations, there are a number of hazards that can threaten your Labor Day festivities.

That’s why it’s important to take some time to brush up on your safety knowledge before the weekend arrives, whether you’re hitting the road or staying at home.

Here are a few tips to get you started:

Review your insurance

From your home to the highway, you want to be confident you have the proper insurance coverage no matter where you are. Before the weekend kicks off, take some time to review your current home and auto insurance coverages.

A good home insurance policy will offer coverage for a variety of perils. For full protection, make sure you have the following coverages on your policy: dwelling coverage, other structures coverage, personal contents coverage, liability coverage, loss of use coverage and medical payments coverage. Pay attention to your policy’s coverage limits as well, just in case you need to add additional protection.

While you want peace of mind protection at home, you also want it when you are out on the open road. Before you gas up the car and head to the beach, you’ll want to take a look at your auto insurance policy. While most states only require you to carry minimal liability coverage, you should have a much more complete approach. Make sure you have protections such as bodily injury liability, personal injury protection, property damage liability, collision, comprehensive and uninsured/underinsurance motorist coverage.

Don’t play with fire

Having the proper insurance coverage in place is important. However, it’s always best to try to avoid claims from happening altogether.

Since Labor Day weekend usually revolves around firework displays and barbecues, it’s a good time to revisit fire safety. According to the National Fire Protection Association, each year an average of 8,800 home fires are caused by grilling.

Here are some tips to prevent your Labor Day cookout from going up in flames:

Make sure your grill is place well away from your home, deck railings and out from under any overhangs.
Make it a rule to keep children and pets out of the grilling area.
Never leave the grill unattended.
Always keep the grill clean by removing grease and fat buildup
If using a gas grill, check for potential leaks before starting it up.
If you smell gas while cooking, immediately turn off the gas tank and burners.

Aside from grills, fireworks are another common cause of fires and injury. You can lower the risk of incident by not allowing children to play with fireworks, lighting fireworks safely, keep a fire extinguisher on hand and avoiding professional grade fireworks. Of course, the safest way to view fireworks is by catching a public display.

For more information about fire safety, visit http://ift.tt/1JEjyk6.

Host responsibly

Throwing a big Labor Day party? Planning on serving alcohol? Make sure you are a responsible host. If one of your guests is over served and gets behind the wheel of a car, you could be held responsible. As host of the party, you are subject to social host liability, which is the legal term for the criminal and civil responsibility of a person who furnishes alcohol to a guest.

Keep an eye on your guests throughout the night and make sure to have the phone number of a taxi company or the Uber app on hand for those who need a safe ride home. To be extra safe, you may even want to invite guests to spend the night.

Stay safe on the road

If you are hitting the highway for an end-of-summer family vacation, a little preparation can go a long way in preventing roadside disasters. Before heading out of town, take your vehicle in for a quick tune-up. Have the tires checked, fluids topped-off and make sure everything is working properly. Another road trip must? Packing a car emergency kit. Your kit should include items such as jumper cables, a tire gauge, a flashlight and a first aid kit.

With so many people on the road for the holiday weekend, you’ll need to be on high alert when driving. Make sure to get a goodnight’s sleep beforehand and try to leave early in the day, if possible, to avoid high traffic times.

Labor Day weekend should be a time for fun and relaxation. Don’t let preventable accidents ruin your holiday. Arm yourself with the safety tips above and you can enjoy the last few days of summer with peace of mind.

Photo credit for preview image: Flickr user/Eli Christman

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Insurance Online : On Labor Day Weekend, Put Safety First

That’s why it’s important to take some time to brush up on your safety knowledge before the weekend arrives, whether you’re hitting the road or staying at home.

Here are a few tips to get you started:

Review your insurance

Don’t play with fire

Having the proper insurance coverage in place is important. However, it’s always best to try to avoid claims from happening altogether.

Here are some tips to prevent your Labor Day cookout from going up in flames:

Make sure your grill is place well away from your home, deck railings and out from under any overhangs.
Make it a rule to keep children and pets out of the grilling area.
Never leave the grill unattended.
Always keep the grill clean by removing grease and fat buildup
If using a gas grill, check for potential leaks before starting it up.
If you smell gas while cooking, immediately turn off the gas tank and burners.

For more information about fire safety, visit http://ift.tt/1JEjyk6.

Host responsibly

Stay safe on the road

Photo credit for preview image: Flickr user/Eli Christman

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Wednesday, 2 September 2015

Insurance Online : Consequential Damages From Subcontractor's Faulty Work Constitutes "Property Damage" and An "Occurrence"

The New Jersey appellate court found that the unintended and unexpected consequential damages caused by the subcontractor's defective work constituted "property damage" and an "occurrence." Cypress Point Condo. Ass'n v. Adria Towers, L.L.C., 2015 WL 4111890 (N.J. Super. Ct. App. Div. July 9, 2015). The insured developer hired subcontractors to perform all of the construction work at a condominium project. The subcontractors failed to properly install the roof, flashing, gutters and leaders, brick and EIFS facade, windows, doors and sealants. The AOAO sued the developer, who served as the general contractor, its insurers, and various subcontractors.The AOAO conceded that replacement costs did not constitute "property damage" and an "occurrence" under the policy. The faulty workmanship, however, also caused consequential damages to the common areas and unit owners' property, including damage to steel supports, exterior sheathing and interior sheathing and sheetrock, insulation and other interior areas of the building. Nevertheless, the trial judge determined there was no property damage or "occurrence", and granted summary judgment to the insurers. The appellate court began its analysis by noting that the insuring agreement and definitions in the policy were followed by a section listing exclusions. Thus, before reaching the policy's exclusions, the insuring agreement required that there be an initial determination of whether there was "property damage" and an "occurrence." Construing the first section of the policy with the insuring agreement, the court first noted that the consequential damages clearly constituted "physical injury to tangible property," thus meeting the policy's definition for "property damage." The faulty workmanship damaged the common areas and unit owners' property. Second, the consequential damages amounted to an unexpected and unintended "continuous or repeated exposure to substantially the same general harmful conditions." There was no claim that the subcontractors either expected or intended for their faulty workmanship to cause "physical injury to tangible property." Therefore, the consequential damages constituted an "occurrence" as defined in the policy. The insurer next argued that the trial court properly relied upon Weedo v. Stone-E-Brick, Inc., 405 A.2d 788 (N.J. 1979) and Firemen's Ins. Co. of Newark v. Nat'l Union Fire Ins. Co., 904 A.2d 754 (App. Div. 2006) to determine there was no coverage. In both decisions, the court found that damage from faulty workmanship was not caused by an occurrence and not covered. In Weedo, the court held there was no coverage for "faulty workmanship . . . where the damages claimed were solely the cost of correcting the work itself." Here, however, the consequential damages were distinct from the cost of correcting the work itself. Thus, the holding in Weedo was not dispositive here. In Fireman's, the court concluded there was no "property damage" or "occurrence," and thus no coverage for damages that were solely related to replacing sub-standard firewalls because the damages were a business risk and not consequential damages. In Fireman's, there were no allegations of damages to the rest of the building. Therefore, the court followed Weedo in holding that the replacement of the defective work - a business risk - was uninsurable. The consequential damages here were additional damages to the common areas of the building and the unit owners' property. The consequential damages were therefore not the cost of correcting the defective work, such as the cost of replacing the stucco in Weedo or replacing the firewalls as in Firemen's, but rather the cost of curing the "property damage" arising form the subcontractors' faulty workmanship. The appellate court also noted that the two prior opinions construed the 1973 ISO form, which differed from the 1986 ISO form at issue here. First, the 1973 ISO form defined "occurrence" as "an accident . . . which results in . . . property damage neither expected nor intended from the standpoint of the insured." The 1986 ISO form defined "occurrence" as "an accident, including continuous or repeated exposure to substantially the same general harmful conditions." "Property damage," therefore, was not directly included in the policy's definition of "occurrence." Second, the 1986 ISO form included a significant exception to an exclusion not contained in the 1973 ISO form. Although exclusion 2 (l) barred coverage for "property damage" to "your work," the exclusion did "not apply if the damaged work or the work out of which the damage arises was performed on your behalf by a subcontractor." This exception in the 1986 ISO form meant that consequential damages caused by a subcontractor's faulty workmanship were considered differently than property damage caused by a general contractor's work. Finally, the court found persuasive the fact that the current majority rule was that construction defects causing consequential damages constituted an occurrence. The case was remanded for consideration of the policy's exclusions. The Hawaii Intermediate Court of Appeals found in 2010 that construction defect claims did not constitute an occurrence. Group Builders, Inc. v. Admiral Ins. Co., 123 Haw. 142, 148-49, 231 P.3d 67, 73-74 (Haw. Ct. App. 2010). The Hawaii court was partially persuaded by what it deemed to be the majority rule at the time, i.e., a defective workmanship cliam is not an "occurrence" under a CGL policy. The Hawaii Supreme Court has yet to address the issue.

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Tuesday, 1 September 2015

Insurance Online : Protection for Non-Profit Service: Non-Profit D&O

Serving on the board of a non-profit entity brings exposures, and as a Director of a non-profit you should ensure that the non-profit you are associated with has Directors and Officers (D&O) insurance for protection (see prior posts here, here & here). Directors and Officers (D&O) insurance protects against legal judgments and related expenses resulting from allegations of wrongful acts committed by individuals in their capacity as directors and officers. Most D&O insurance policies for non-profits include a coverage called employment practices liability insurance, which protects the non-profit and its employees from legal judgments and related expenses resulting from allegations of wrongful acts committed in the employment realm. A recent article (see here) describes the importance of D&O insurance, including...

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