P. Todd Reed, CPPO, CPPB

No one set of answers Agency driven Provide guidance, examples, and interaction Best practices SB Chapter 1811 Texas Insurance Code Certificate vs. endorsement vs. policies ISO and other forms

TDI approved – ACORD Form 25 dated 2010/05 or 2014/01 Summary only and are for information purposes only. An insurance policy may exist with certain coverages and limits. Not a policy

Basically this means that a notation on the certificate of insurance (ACORD 25) stating that the agency is an additional insured, the agency will receive notice of cancellation of a policy, or there is a waiver of subrogation means nothing. Not a breach of contract and virtually no legal recourse

Commercial General Liability Automobile Liability Umbrella-Excess Workers Comp Professional Liability Pollution Liability Builders Risk Garage Liability for Bodily Injury & Property Damage Garage Keepers Coverage Watch for Exclusions

Covers the general business activities of a contractor. Excluded are activities which are covered by specialized policies. Designed to cover: Contractual Liability, On-going Operations and Completed Operations.

Provides coverage for bodily injury or property damage arising out of the ownership and use of autos for the contractor. Should be checked for Any Auto, All Owned Autos, Hired Autos

Both cover multiple lines of coverage above the limits of underlying coverage. Umbrella coverage is broader and can provide more coverage than the underlying policies. Excess coverage is more restrictive and covers no more than the underlying policies.

Provides statutory benefits to employees of the contractor who sustain bodily injury in the course and scope of their employment. Statutory limits for Texas. Hold Harmless Agreements

 Insurance to cover the negligent acts (errors & omissions) that injure their clients from the rendering of, or failure to render, professional services.  Coverage should be maintained at least two (2) years after the project is completed.

Environmental Impairment/Pollution Liability Coverage for liability arising from bodily injury and property damage caused by the discharge of hazardous materials or pollutants including clean up costs.(if project entails possible contamination of air, soil or ground or as determined by the agency.) Very limited if included in CGL

Covers property in the course of construction. at the construction site, off-site storage locations, and in transit. If project entails vertical construction, including but not limited to bridges and tunnels or as determined by the agency. Whatever required of GC needs to extend to subs

Covers the complete business operations Covers bodily injury and property damage caused by accidents arising out of garage operations. Customers autos in respect to damages

CG Forms should be used Declaration Page Right to inspect Policies Should be required when on agency property Leverage exists prior to the contract being signed Verify policy numbers and dates

General Liability:  Agency is Additional Insured  Coverage is Primary and non-contributory  Waiver of Subrogation in favor of the agency  30 day written notice of cancellation or non- renewal of insurance Auto Liability:  Agency is Additional Insured  Waiver of Subrogation in favor of the agency  30 day written notice of cancellation or non- renewal of insurance

Workers Compensation:  Waiver of Subrogation in favor of the agency  30 day written notice of cancellation or non- renewal of insurance  Multiple carriers would require same endorsements from each  Blanket Endorsements

The contractor is required to extend additional insured coverage to the agency pursuant to a contract. Claims against the agency must be first made against the contractor’s insurance. Agency’s insurance does not have to contribute to the claim covered by the contractor’s insurance policy(ies).

Without this endorsement the agency will not be covered under the contractor’s general liability or automobile liability insurance policies and claims may be made directly against the agency’s insurance carrier (Risk Pool). Only contractor (insured) or agency (additional insured) can make a claim Other additional insureds

Stipulates the order in which multiple policies triggered by the same loss are to respond. Contractors policies must pay Contractors policies can not seek contribution from agency policies. There is no standard ISO form for this endorsement.

Insulates the agency from the contactors insurance company coming back to the agency to get reimbursed. The waiver of subrogation condition in current standard policies is referred to as "transfer of rights of recovery." Greatest ability to control risk on the job site is the contractor.

Renewals-material changes Term Contract vs. Spot Contract

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Questions?