1. 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

2. 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

3. What of a flooded basement then? Contents of old basement: washer/dryer; furnace; Christmas decorations; junk

4. What of a flooded basement today? Contents of current “basement”: RM Tip: better insurance or move everything upstairs

5. 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

6. 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.Any vehicle, other than “your covered auto”, which is: a.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”.

7. 12 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 Insurance limited and often utilizes outdated definitions (acv; computer) If key risk is to hardware, consider HO peril issues: Sudden And Accidental Damage From Artificially Generated Electrical Current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

8. 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) 13

9. 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;

10. 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

11. 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.

12. Let’s Spend Our Lives Together: Significant others HO 04 58: Other Members of Your Household: We insure the person named in the Schedule above who lives with you and is a member of your household and who is not an "insured", guest, "residence employee", tenant, roomer or boarder. We also insure a person under the age of 21 who lives with and is in the legal custody of the person named in the Schedule. ISO HO form language: Personal property covered: “Insureds” anywhere in the world Others while the property is on the part of the “residence premises” occupied by an “insured”. A guest or a “residence employee” while the property is in any residence occupied by an “insured”.

13. 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

14. 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.

15. 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.

16. 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.”

17. 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. CGL a. Umbrella a. CGL b. Umbrella a. Umbrella b. CGL a. CGL

18. 18 My Kingdom for a Valuation Square footage? 1 10 100

19. 19 My Kingdom for a Valuation Square footage? 1 25 40

20. 20 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

21. 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)Accucoverage HomeSmartReports.com ($6.95) Commercial: Swiftestimator.com ($20 per section)Swiftestimator.com

22. Unique Could Mean Your Neck Commercial Umbrella Checklists

23. We’ll Sue in the Sunshine Discontinued operations b.This insurance applies to “bodily injury” and “property damage” only if: c.The “bodily injury” or “property damage” occurs during the policy period.

24. Big Finale… IIABA’s Virtual University Go to www.independentagent.comwww.independentagent.com Select “Virtual University” from the menu