855 NY FORM ADDENDUM

RISK STRATEGIES: AVOID PREVENT MITIGATE TRANSFER BY CONTRACT TRANSFER BY INSURANCE RETAIN

RISK STRATEGIES: AVOID PREVENT MITIGATE TRANSFER BY CONTRACT TRANSFER BY INSURANCE RETAIN

KEY QUESTION: DOES THE PARTY ASSUMING RISK HAVE PROPER COVERAGE FOR THE EXPOSURE?

ANSWER ONE OF TWO WAYS

READ THE POLICIES

OR …

COVERAGE IMPORTANCE WHEN ACCEPTING RISK: INSURE TRANSFER OF RISK PROTECT CASHFLOW PROTECT ASSETS POTENTIALLY SURVIVAL

COVERAGE IMPORTANCE WHEN TRANSFERRING RISK: DOLLARS TO PAY CLAIMS PRESERVE LIMITS IMPROVE LOSS HISTORY LOWER SEVERITY EXPOSURE ENHANCE CARRIER DESIRABILITY LOWER RATES INCREASED COMPETITIVENESS

BREAKING IT DOWN A TO M

A

ADMITTED/AUTHORIZED: “SO WHAT”: FORMS AND POLICY LANGUAGE FILED AND APPROVED

EXCESS OR FREE TRADE “SO WHAT”: UNKNOWN SCRIPTED LANGUAGE NOT FILED OR APPROVED

ISO / ISO MODIFIED: “SO WHAT”: KNOWN STANDARD LANGUAGE

EXCESS OR FREE TRADE “SO WHAT”: UNKNOWN SCRIPTED LANGUAGE

B

RESTRICTED/EXCLUDED OPS: LOCATION TYPE OF CONSTRUCTION BUILDING HEIGHT CLASSIFICATIONS DESIGNATED WORK

“SO WHAT”: UNCOVERED RISK!

C

LOOK OUT!

EXCLUSIONS: CG 21 00 DESIGNATED PREMISES CG 21 34 DESIGNATED WORK CG 21 44 LIMITATION CG 21 53 DESIGNATED OPERATION CG 21 86 EXTERIOR SYSTEMS NON-STANDARD ENDORSEMENTS

OWNER SUBGC

THE PLAYERS:

CLMT

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ADDITIONAL INSURED

OWNER GC

ADDITIONAL INSURED

CLMT

CLAIM

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OWNER GC

ADDITIONAL INSURED

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HERE YOU GO I’M AN AI!

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OWNER GC

ADDITIONAL INSURED

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ADDITIONAL INSURED

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ADDITIONAL INSURED

CLMT

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CLAIM

HERE YOU GO I’M AN AI!

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ADDITIONAL INSURED

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OWNER GC

ADDITIONAL INSURED

CLMT

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OWNER GC

ADDITIONAL INSURED

CLMT

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I’M AN AI!

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CLAIM

OWNER GC

ADDITIONAL INSURED

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ME TOO!

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ADDITIONAL INSURED

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LOOK CLOSE: ADDITIONAL INSURED STATUS?

CG 20 10: ADDITIONAL INSURED - OWNERS, LESSEES OR CONTRACTORS - SCHEDULED PERSON OR ORGANIZATION

CG 20 26: ADDITIONAL INSURED - DESIGNATED PERSON OR ORGANIZATION

CG 20 32: ADDITIONAL INSURED - ENGINEERS, ARCHITECTS OR SURVEYORS NOT ENGAGED BY THE NAMED INSURED

CG 20 33: ADDITIONAL INSURED - OWNERS, LESSEES OR CONTRACTORS - AUTOMATIC STATUS WHEN REQUIRED IN CONSTRUCTION AGREEMENT WITH YOU

CG 20 37: ADDITIONAL INSURED - OWNERS, LESSEES OR CONTRACTORS - COMPLETED OPERATIONS

CG 20 38: ADDITIONAL INSURED - OWNERS, LESSEES OR CONTRACTORS - AUTOMATIC STATUS FOR OTHER PARTIES WHEN REQUIRED IN WRITTEN CONSTRUCTION AGREEMENT

PRIMARY AND NONCONTRIBUTORY CG 20 01: PRIMARY AND NONCONTRIBUTORY - OTHER INSURANCE CONDITION

“SO WHAT”: TRANSFERS RISK AS REQUIRED BY CONTACT!

E

GC

PRIMARY AND NONCONTRIBUTORY

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CLAIM

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CLMT

SUB

HERE YOU GO I’M AN AI!

PRIMARY AND NONCONTRIBUTORY

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CLAIM

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CLMT

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PRIMARY AND NONCONTRIBUTORY

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WITHOUT PRIMARY AND NONCONTRIBUTORY

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CLMT

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HERE YOU GO I’M AN AI!

WITHOUT PRIMARY AND NONCONTRIBUTORY

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CLAIM

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WITHOUT PRIMARY AND NONCONTRIBUTORY

NOT PRIMARY & YOU CONTRIBUTE

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WITHOUT PRIMARY AND NONCONTRIBUTORY

NOT PRIMARY & YOU CONTRIBUTE

)

CANCELATION NOTICE: “SO WHAT”: CANCELED POLICIES DON’T RESPOND TO CLAIMS!

F

BLANKET CONTRACTUAL LIABILITY IN “INSURED CONTRACT” DEFINITION REMOVED OR RESTRICTED?

“SO WHAT”: CONTRACTUAL LIABILITY SHOULD BE AVAILABLE WHEN TRANSFERRING RISK BY CONTRACT! G

LOOK OUT FOR CG 2139!

EMPLOYERS LIABILITY AND INJURY TO EMPLOYEES

BLANKET CONTRACTUAL INSURED CONTRACT EXCEPTION TO EMPLOYER LIABILITY EXCLUSION REMOVED OR MODIFIED

“SO WHAT” CONTRACTUAL LIABILITY SHOULD BE AVAILABLE WHEN TRANSFERRING RISK BY CONTRACT! H

EMPLOYERS LIABILITY: “BODILY INJURY TO: 1. AN EMPLOYEE OF THE INSURED ARISING OUT OF AND IN THE COURSE OF: A. EMPLOYMENT BY THE INSURED; OR B. PERFORMING DUTIES RELATED TO THE CONDUCT OF THE INSURED’S BUSINESS; THIS EXCLUSION DOES NOT APPLY TO LIABILITY ASSUMED BY THE INSURED UNDER AND INSURED CONTRACT.

INJURY TO EMPLOYEES GL DOES NOT COVER ADDITIONAL INSURED FOR CLAIMS INVOLVING INJURY TO EMPLOYEES OF NAMED INSURED OR SUBCONTRACTORS

“SO WHAT” NO COVERAGE FOR SCAFFOLDING (240 LABOR) LAW

I

SCAFFOLD - 240 LABOR LAW: CONTRACTORS & OWNERS ELEVATION RELATED INJURIES CONSTRUCTION, REPAIR AND DEMOLITION ABSOLUTE LIABILITY CONTRIBUTING FAULT OR GROSS NEGLIGENCE IRRELEVANT

EXCLUSION OR RESTRICTION FOR EARTH MOVEMENT, EXCAVATION, EXPLOSION, COLLAPSE, UNDERGROUND PROPERTY ?

“SO WHAT”: COVERAGE SHOULD BE AVAILABLE WHEN TRANSFERRING RISK BY CONTRACT! J

INSURED VS. INSURED SUITES: EXCLUSION OR RESTRICTION OTHER THAN NAMED INSURED VS NAMED INSURED!

“SO WHAT”: COVERAGE SHOULD BE AVAILABLE WHEN TRANSFERRING RISK BY CONTRACT! K

LOOK OUT: ISO CGL CROSS LIABILITY SEPARATION OF INSUREDS WORDING

PROPERTY DAMAGE EXCLUSION FOR WORK PERFORMED BY SUBS

“SO WHAT”: “AND THEN…

L

… THE WALL FELL DOWN!”

EXCESS/UMBRELLA IS PRIMARY AND NON-CONTRIBUTORY FOR ADDITIONAL INSUREDS

“SO WHAT”: HORIZONTAL INSTEAD OF VERTICAL STACKING OF LIMITS

M

GC

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UMBRELLA WITHOUT PRIMARY AND NONCONTRIBUTORY

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CLAIM

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UMBRELLA WITHOUT PRIMARY AND NONCONTRIBUTORY

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HERE YOU GO I’M AN AI!

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UMBRELLA WITHOUT PRIMARY AND NONCONTRIBUTORY

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UMBRELLA WITH PRIMARY AND NONCONTRIBUTORY

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CLAIM

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UMBRELLA WITHOUT PRIMARY AND NONCONTRIBUTORY

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HERE YOU GO I’M AN AI!

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SUB

UMBRELLA PRIMARY AND NONCONTRIBUTORY

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UMB

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ACTION PLAN: REVIEW COVERAGE COMPLETE ACORD 855 DOUBLE CHECK

PROPER COVERAGE IS CRITICAL!

NO SKATING - ATTENTION’S NEEDED!

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