2 Insurance Request from Other Parties Evidence of Insurance only (Certificate Holder)Additional Insured (They want protection on your Liability Insurance)Loss Payee (They Financed a Building and Want to Protect their Interest in the Property they Financed or their Funds you are Controlling)
3 What is A Certificate Holder A certificate holder is someone who only needs evidence that you are insured. It gives them no rights under your coverage.When a Police officer pulls you over and ask for proof of insurance, you show your insurance card. That proof does not give the officer the right to be covered by your insurance. It only proves you have it.This scenario is similar to the rights of a Certificate Holder. No rights, just proof!
4 The Most Common Evidence Of Insurance The most common Evidence of existence of insurance is a Certificate of Insurance.It offers no rights under the policy to the certificate holderIt just proves the Affordable Housing entity has coverage. The next page shows one.
6 Asking For Endorsements Additional Insured and Loss Payee Endorsements give other parties rights under your coverage.Just because they ask for it may not be in the Affordable Housing’s entities best interest to grant it.Seriously Consider the implications of allowing others to be protected under your policy. The Housing entity may find itself paying for claims others caused. These claims will be on your records.
7 Need Help negotiating the Contract Insurance Language? AHRP’s Risk Manager, Al Alvarez can help, send him a copy of the Indemnification and Insurance language for review before the agreement is signed.(360) ext 104Fax: (360)
8 ESSENTIAL INFORMATION AHRP NEEDS In order to issue A certificate, or an endorsement we need:The Organization that is to be protectedThe Organization it is to go toThe Exact Language they want on it(some times it includes a loan number)Ideally we would like a certificate they approved in the past
9 Exactly What is an Additional Insured? An “additional insured” is a legal status that gives coverage rights to another party under your insurance policy in the event of a future claim caused by your staff.Entities that may request this are: An Auto Finance Company, a Mortgagor, a Funding Source.Additional Insured's have the right to be defended and claims paid by your housing entities insurance.Therefore, a request to be additional Insured should be seriously considered. Do you want to pay for what they do wrong? NO!
10 What a AHRP Additional Insured Endorsement looks like
11 Exactly What Is A Loss Payee Loss Payee Is a status that gives the right to another party to be reimbursed for loss of funds or insurance proceeds from the loss of a building from a covered claim.If a covered building is destroyed by fire, the Housing Entity & the Loss Payee are both named on the check to restore the building.
13 How Do we request Evidence of Insurance? Use this form
14 ExclusionsThere is no such thing as “All Risk” or “Comprehensive Insurance”All Insurance policies contain exclusions (incidents not covered by the insurance policy).Exclusions are in place due to Catastrophic loss potential (earthquake, terrorist attacks)
15 How Coverage Exclusions Effect Additional Insured Status In order to issue a certificate of insurance with an additional insured endorsement. AHRP needs to know why it is being requested.Since they will have rights under your policy, we would not want them to think they have coverage for an them excluded. Therefore, we must know what their interest is in your operations. They must have an “insurable interest”.For example, if they are providing funds for lead paint abatement, additional insured status will not be granted because lead paint is excluded by AHRP’s insurance.
16 Work we Cannot Issue Certificates for Due to AHRP Exclusions Builder’s Risk / Property exposures.(AHRP can extend Liability only to ownership entity during course of construction)Lead Paint or Asbestos AbatementPollution AbatementWorkers Comp
17 Ok, So What Are We Covered For? General Liability Covers:Bodily Injury to othersProperty Damage to OthersLiable and SlanderDefense of These Cases
18 Ok, So What Are We Covered For? Property Insurance Covers:Your BuildingsEquipment Breakdown (Boiler and Machinery)Authority owned Contents (an optional coverage)Rents (an optional coverage)
19 Ok, So What Are We Covered For? Errors and Omissions Covers:Discrimination, Tenant related liability with a sub-limit up to $150,000 each event.
20 Ok, So What Are We Covered For? Automobile Liability Covers:Property Damage &Bodily Injurywith a Non-Owned or Hired vehicle.*No Physical Damage coverages to auto owned by others
21 What Shall We Do if the Work is Excluded? Most excluded items can be purchased as a separate policy through OWRACA, (HARRP’s wholly owned Insurance Agency).Gil Stuart, our in-house Agent can assist in obtaining an insurance policy to fill those coverage gaps.He can be reached at:(360) ext 103Robin Cox – Member Services ext 108
22 Frequently Asked Questions Our Property Management Firm does not have Errors and Omissions coverage. They says they should be covered under our insurance. What do you advise?- Your Property Management Firm under contract needs their own insurance. Their employees will be the main contact with your tenants. If the housing entity gets sued for rape, discrimination by their staff or conditions created by their own actions, they must be held responsible and be insured for their own exposure. They are not covered under the housing entities errors and omissions insurance. Only Your employees are. – “except for discrimination sub-limit discussed earlier.”