Transcript Welcome to the Big I Virtual University`s

Welcome to the Big I
Virtual University’s
Answers, Evaluations and
Revelations
Just when you thought it was safe to go back in the
seminar
featuring
Rock and Rollin’ Chris
Flood for Thought
• “Flood” versus “a ton of water in my
basement”
• Misuse/nonuse of endorsements
• NFIP controversies
• Business Income in NFIP
• Excess flood
• Floodsmart.gov
What of a flooded basement then?
Contents of old basement:
washer/dryer; furnace; Christmas decorations; junk
What of a flooded basement today?
Contents of current “basement”:
RM Tip: better insurance or move everything upstairs
With Apologies to Jeff
Foxworthy…
•
"If there are fish skeletons in your dining room ceiling light fixture, you just
might have flood damage.“
•
"If you get a speeding ticket in your neighborhood – from the Coast Guard
– you just might have flood damage.“
•
"If the government has posted a sign saying, "No running, diving, or
horseplay" in your living room, you just might have flood damage.“
•
"If your insurer sends Michael Phelps to adjust your homeowners claim,
you just might have flood damage.“
•
"If Jerry Bruckheimer calls you about using your house for the set of
'Pirates of the Caribbean IV: The Curse of the Black Mold,' you just might
have flood damage.“
© 2008 by Bill Wilson & Chris Amrhein
Baby You Can Drive a Car
1 vs. 2 policies
Parents’ policy(ies)
Kid’s policy
Bases of liability
Statutory
Vicarious
Direct
Negligent entrustment
Dangerous instrumentality
Future liability
Morality
3.
a.
Any vehicle, other than “your
covered auto”, which is:
Owned by any “family member”;
or
b. Furnished or available for the
regular use of any “family
member”.
However, this Exclusion (B.3) does not
apply to you while you are
maintaining or “occupying” any
vehicle which is:
a. Owned by a “family member”; or
b. Furnished or available for the
regular use of a “family
member”.
Are my iToys Covered?
Insurance limited and often utilizes outdated definitions
(acv; computer)
If key risk is to hardware, consider HO peril issues:
Sudden And Accidental Damage From
Artificially Generated Electrical Current
This peril does not include loss to tubes, transistors, electronic components or
circuitry that are a part of appliances, fixtures, computers, home
entertainment units or other types of electronic apparatus.
Often overlooked: today data loss is critical risk, not device
damage
12
iToys Solutions
• HO 5; surge suppressors
• Data loss solution: risk
management
• Regular Backups
• Massive increase in storage
options (hardware, cloud) at
steady decrease in cost
• Security recommendations
(passwords, software)
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But I Don’t Own the Building!
Insurable interest
6) Your use interest as tenant in
improvements and betterments.
Improvements and betterments
are fixtures, alterations,
installations or additions:
a) Made a part of the building or
structure you occupy but do not
own; and
b) You acquired or made at your
expense but cannot legally remove;
But I Don’t Own the Building
- II
Triple Net Leases
Fire legal insufficient
Remedies
Fraud!
Tenant arson
Owner without mortgagee
protection
A.
CONCEALMENT,
MISREPRESENTATION OR
FRAUD
This Coverage Part is void in
any case of fraud by you as it
relates to this Coverage Part at
any time. It is also void if you
or any other insured, at any
time, intentionally conceal or
misrepresent a material fact
concerning…
CP 0090
Overlooked Underlying
P. "Underlying insurance" means
any policy providing the
"insured" with primary liability
insurance covering one or more
of the types of liability listed in
the Declarations and at limits no
less than the retained policy
limits shown for those types of
liability listed in the
Declarations.
•
IV. Maintenance Of Underlying
Insurance
You must maintain the "underlying
insurance" at the full limits stated
in the Declarations and with no
change to more restrictive
conditions during the term of this
policy. If any "underlying
insurance" is canceled or not
renewed and not replaced, you
must notify us at once.
If you fail to maintain "underlying
insurance", we will not be liable
under this policy for more than we
would have been liable if that
"underlying insurance" was in
effect.
Let’s Spend Our Lives
Together: Significant others
ISO HO form language:
Personal property covered:
HO 04 58: Other Members of
Your Household:
We insure the person named in the
• “Insureds” anywhere in the
Schedule above who lives with
world
you and is a member of your
• Others while the property is
household and who is not an
"insured", guest, "residence
on the part of the “residence
employee", tenant, roomer or
premises” occupied by an
boarder. We also insure a
“insured”.
person under the age of 21 who
• A guest or a “residence
lives with and is in the legal
custody of the person named in
employee” while the property
the Schedule.
is in any residence occupied
by an “insured”.
LLC me Baby!
Personal trusts
HO 06 15 - Trust endorsement (ISO 2011
replacement for HO 05 43 - Residence Held in Trust
PP 13 03 – Trust Endorsement
Held by a Hold Harmless
Hold Harmless Agreements Aren’t Harmless!
To the fullest extent permitted by law, ABC Engineering, Inc. agrees to
defend, indemnify and save harmless XYZ Construction, Inc. and Owner, as well
as any other parties, which XYZ Construction is required under the Contract
Documents to defend, indemnify and hold harmless, and their agents, servants
and employees, from and against any claim, cost, expense or liability (including
attorneys' fees), attributable to bodily injury, sickness, disease, or death, or to
damage to or destruction of property (including loss of use thereof), caused by,
arising out of, resulting from, or occurring in connection with the performance
of the work by ABC Engineering, Inc., its subcontractors and suppliers, or
their agents, servants, or employees, whether or not caused in part by the
active or passive negligence or other fault of a party caused by the sole
negligence of a party indemnified hereunder. ABC Engineering Inc.'s
obligation hereunder shall not be limited by the provisions of any worker's
compensation or similar act. ABC Engineering, Inc. hereby agrees that One
Hundred Dollars and No/Cents ($100.00) of the Price constitutes the separate
consideration for ABC Engineering, Inc. indemnity hereunder. Such amount shall
be deemed paid out of the first invoice for payment paid hereunder.
Primary and Noncontributory
CGL “Primary & Noncontributory Certificate Requirements
The current CGL already provides primary coverage for AIs.
How does the construction contract define “noncontributory”
(Hint: It doesn’t.)
If “noncontributory” means “excess,” then no problem.
If “noncontributory” means the policy won’t contribute at all, you
have a MAJOR problem.
Primary and Noncontributory
2013 CGL changes:
Excess provision no longer requires AI be added to other policy by
endorsement
“The following is added to the Other Insurance Condition and supersedes any
provision to the contrary:
Primary And Noncontributory Insurance
This insurance is primary to and will not seek contribution from any other
insurance available to an additional insured under your policy provided that:
(1) The additional insured is a Named Insured under such other insurance; and
(2) You have agreed in writing in a contract or agreement that this insurance
would be primary and would not seek contribution from any other insurance
available to the additional insured.”
Vertical or Horizontal Indemnification?
(Thanks to Patrick Deem)
Vertical
Indemnitor – our insured
Indemnitee – the other guy
Horizontal
a.Indemnitor – our insured
•Indemnitee – the other guy
b. Umbrella
b. Umbrella
a. Umbrella
b. CGL
a. CGL
b. CGL
a. Umbrella
a. CGL
My Kingdom for a
Valuation
Square footage?
10
100
18
1
My Kingdom for a
Valuation
Square footage?
25
40
19
1
How wrong is it? Let us
count one way.
Ballpark assumptions: not meant to be realistic, just to give numbers to work with
10 blocks per running foot length of wall @ $1.00 per brick
+ labor cost of $.10 per brick
= $11 per running foot
25 x 40 = 130’ wall length x $11 = $1430
10 x100 = 220’ wall length x $11 = $2420
Same square footage, yet estimated 69% difference in RC
20
My Kingdom for A Valuation!
58 percent of American homes undervalued by an average of 21%
60% of non-residential property is underinsured in North America, some
in excess of 40% or more
Home: Accucoverage.com ($7.95)
HomeSmartReports.com ($6.95)
Commercial: Swiftestimator.com ($20 per section)
Unique Could Mean Your
Neck
Commercial Umbrella Checklists
We’ll Sue in the Sunshine
Discontinued
operations
b.
c.
This insurance applies to
“bodily injury” and “property
damage” only if:
The “bodily injury” or
“property damage” occurs
during the policy period.
Big Finale…
IIABA’s Virtual University
Go to
www.independentagent.com
Select “Virtual University”
from the menu