What's
New In Your Community?
This month our
focus is on What's
New in the Insurance Industry
March 11th,
2013
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Newsletter
Content for March 11th, 2013
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What's
New In Your Community |
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New
Community Webinars - New Commercial General Liability Form |
Community
Free Webinar
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| Date: |
February
13th, 2012 |
| Topic: |
New
Commercial General Liability Form |
| Instructor: |
Marjorie
Segale AFIS, CISC, CIC, RPLU, CRIS, ACSR, CISR
Director of Education, Insurance Community Center
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| Time: |
9:00am
- 10:00am PST / 12:00noon - 1:00pm EST |
| Contact: |
Barbara@InsuranceCommunityCenter.com |
Writing Commercial Property? You must be aware of the
changes to the Commercial Property Forms.
Join us for a 1 hour educational webinar (no CE) that
explains the changes! This webinar is FREE to all University
members. Cost of $25 per person for non-university members.
-This overview will highlight the all of the NEW restrictions
and endorsements available in the series.
- Form changes are EFFECTIVE this year!
- All people writing COMMERCIAL PROPERTY must be aware
of the changes, especially if it means a reduction
in COVERAGE.
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Upcoming
University Webinars |
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The
complete 2013 Calendar has been published on the
Insurance Community Center website
Click here to view educational tracks Click
Here |
| Monthly Webinars
that Qualify for CE in California, Colorado, Florida, Iowa, Idaho,
Indiana, Louisiana, Maine, Massachusetts, Missouri, Nebraska, Nevada,
New Hampshire, New York, North Carolina, Oregon, Pennsylvania, Tennessee,
Texas, Utah, Wisconsin and Wyoming! Please check to verify particular
class is available in your state. |
| Upcoming
University Webinar - Qualifies For CE in States Listed Below |
University
CE Webinar
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| Date: |
March
14th, 2012 |
| Topic: |
Homeowners
- 5 Key Issues |
| Instructor: |
Casey
Roberts, CIC, AFIS, ACSR
Director of Marketing, Quick Life |
| Time: |
9:00am
- 11:00am PST / 12:00pm - 2:00pm EST |
States
Approved in: |
CA,
CO, FL, IA, ID, IL, IN, LA, MA, ME, MO, NE, NH, NV,
NY, NC, OR, PA, TN, TX, UT, WI, WY
*Webinars
can be attended for educational purposes in all states
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| Contact: |
Barbara@InsuranceCommunityCenter.com |
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University
CE Webinar
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| Date: |
March
21st, 2012 |
| Topic: |
Business
Auto Policy |
| Instructor: |
Al
Parizo AFIS |
| Time: |
9:00am
- 11:00am PST / 12:00pm - 2:00pm EST |
States
Approved in: |
CA,
FL, ID, IL, MA, MO, NE, NH, NV, NY, OR, TN, TX, WI
*Webinars
can be attended for educational purposes in all states
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| Contact: |
Barbara@InsuranceCommunityCenter.com |
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ALL
WEBINARS ARE FREE TO UNIVERSITY MEMBERS!
Non-Members of the University can Register for CE for $50 |
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| Article
of the Week - What's
New: Business in the Home Update:
Yahoo; "Get Back to Work" ....California Homemade
Food Act; "Work at Home" |
When
I think about businesses/people working out of their homes the first
picture that comes to mind are people working on the computers; virtual
offices; remote offices; and often times offices outside of the United
States. That is why it came to me as a surprised when Yahoo, this week,
proclaimed all their employees had to “come back to work”
One news line read “work at home and you will be fired”.
Clearly this is a change, especially for a high tech company. Marissa
Mayer, the president and CEO of Yahoo as of 2013, defends her stance
and says it will “separate out the truly productive workers from
stay at home slackers who abuse the system.” Needless to say the
news is buzzing about this, so time will see if she sticks to her guns.
http://www.wired.com/business/2013/02/yahoo-no-work-from-home/
While Yahoo is “going
back to the workplace”—more and more people are choosing
to work from their home. The current economy has redefined how people
cope with the unemployment dilemma and many businesses encourage staff
to work from home to better maximize their production and as a means
to better deal with the demands of work and family.
Now home based bakeries and cooks are getting a new incentive to work
from home with the passage of a new law California. Other states may
have or may adopt similar laws. The California Homemade Food Act has
created a new category of food producers called “cottage food
producers” which will allow people to cook their food items in
their kitchens at home. Up until this law was enacted, food producers
had to use commercial kitchens. These food producers could include:
caterers; suppliers to organic markets or farmers markets; bakeries
that supply local restaurants with breads or desserts.
Not all foods are approved to be cooked out of a home—only foods
that are considered to be “safe” fall under this law. Approved
items include; baked goods, cookies, coffee, nuts, vinegar, candy and
dried pasta...............
Written
by:
Laurie
Infantino, AFIS, CIC, CISC, CISR, ACSR, CRIS
President of the Insurance Community Center & University
Click
Here to read the rest of the article  |
| Article
of the Week - What's
New ISO Form Changes Commercial General Liability Form |
WHATS
NEW
ISO Form Changes Commercial General Liability
Form Effective Date (4/13)
Materials are copy written by ©Insurance Services Office, Inc.,
In April of 2013
the ISO modified the Commercial Property Forms. It was one of the biggest
changes in forms that we have seen in years with the majority of forms
taking on some type of change.
Effective April 2013, many of the Commercial General Liability forms
also have a new edition date. Some of the changes are minor but carry
new edition dates of existing form numbers and there are some forms
that are first being introduced. It is a multistate revision and some
of the specific state forms have also taken a change or introduced new
forms. Some of the ISO changes have already been adopted in insurance
company forms while other changes represent clarification of the “intent”
of the form.
There are new multistate endorsements that are being introduced:
• Primary And noncontributory—Other Insurance Condition
Endorsement
• Additional Insured—Owners, Lessees or Contractors—Automatic
Status for Other Parties When Required in Written Construction Agreement
• Total Pollution Exclusion For Designated Products Or Work Endorsement
• Liquor Liability—Bring Your Own Alcohol Establishments
Endorsement
• Amendment of Personal and Advertising Injury Definition Endorsement
• Designated Location(s) Aggregate Limit Endorsement
Specifically we will highlight those changes that have any significant
impact and new endorsements to the form series. It goes without saying
that any form that narrows coverage requires that we notify our insureds
to avoid any gap in coverage as they renew on the new CGL edition date.
All of these changes will be discussed in more detail in the Insurance
Community class on March 19th. Click
Here to Register
Liquor Liability Form Revisions
One of the areas that has taken on a significant change is in the area
of Liquor Liability. There are several forms that have taken the new
edition date including: ..................................
Written by:
Laurie
Infantino, AFIS, CIC, CISC, CISR, ACSR, CRIS
President of the Insurance Community Center & University
Click
Here to read the rest of the article |
| Covered
Not Covered - Business
Income and Dependent Property From a Secondary Location |
There
was a lot that changed with the Commercial Property Forms in the 2013
series; in fact, most forms took some sort of modification. One of the
most interesting of the changes was the introduction of an optional
coverage available on the Dependent Property Forms for Dependent Properties
in the Supply Chain (Business Interruption).
By way of background, the Business Income and Extra Expense forms require
that there is direct damage at the premises described by a covered cause
of loss that gives rise to a loss of income or need to pay extra costs
to operate during the period of restoration. In providing this form
of coverage, we have been aware of the exposure to a loss of income
due to a physical loss at a location that our insured depends on for
various reasons. Recognizing that a loss to a dependent location could
cause financial harm to our insured, ISO created Dependent Property
Endorsements (CP 1508, CP 15 09, CP 1534) provided on a scheduled basis.
What this means is that, for our insured, we identify what company(ies)
they are dependent on and schedule those locations on the Dependent
Property Form attached to their business income policy. For example,
we could be insuring a winery that is dependent on a single manufacturer
to manufacture their distinct wine bottle and provide them with their
customized cork. If that bottle manufacturer had a loss to their manufacturing
facility by a PERIL insured against on the winery’s policy AND
the winery now has no bottles AND the winery can demonstrate they are
losing money OR incurring an Extra Expense by going to a more expensive
alternate supplier THEN the Dependent Property Endorsement could respond.
What we learned, when losses such as this arise, is that often times
the physical loss did not occur at the dependent location we scheduled
on the policy but rather to a “location” that the dependent
property was dependent upon to supply THEM a product or service. So
to expand on the winery example—the bottle manufacturer is dependent
on a single cork manufacturer to supply them with the blank corks they
customize AND the cork manufacturer has a loss (covered peril) and cannot
supply the wine bottle company with the product. We never identified
the cork manufacturer on our insured’s policy as there was no
known or direct relationship.
The new language on the Dependent Property forms have an option for
“secondary contributing locations” and “secondary
recipient locations”.Secondary locations are limited to direct
suppliers and recipients of the dependent property’s materials
or supplies.
On the form, secondary contributing location and recipient location
are now defined terms. There are some important clarifications of the
coverage:
1. The secondary location is not identified in the schedule. However,
there is a box on the schedule that has to be marked identifying that
a secondary location has been included.
2. The secondary location cannot be owned or operated by the “contributing”
or “recipient” location that is identified in the schedule.
3. There is clarity that a secondary location is not a road, bridge,
tunnel, waterway, airfield, pipeline or any other similar area or structure.
4. There is clarity that any source of “services” in the
area of water, power, wastewater removal or communication supply cannot
be a secondary dependent property. These would be covered under Utility
Interruption endorsements.
5. Lastly, there is clarity that the secondary dependent property coverage
is subject to the territory of the policy and is NOT worldwide.
This additional coverage under the Dependent Property Endorsements is
very important to consider, especially for manufacturing accounts. This
all gets back to our identifying exposure and providing solutions.
Click
Here to Register for Business Income Worksheet Webinar
Click
Here to See a Sample of the Business Income Checklist
Written
by:
Laurie Infantino AFIS, CISC, CIC, CRIS, ACSR, CISR
President, Insurance Community Center
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Insurance Q & A - Answers from Insurance Professional |
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Question
1 -
Radio BI
I was hoping that you could give
me some direction on how I would property insurance the BI on
a cluster of 4 radio stations. they are all broadcast out of one
building, but have four different transmitter/tower locations.
AMWins, for one, has asked in the past for a business income for
each station. Not sure how to address. If one tower goes down,
of course, not advertising going out over the air. But, if the
studio burns down, all four stations are dark. So, I have five
locations, one studio, four different transmitter/towers. the
income is not equal in all four stations, but lost as to tell
the insured what to do. Blanket coverage is one way we have addressed,but
it costs more.
Answer
by Laurie Infantino, AFIS, CIC, CISC, CISR, ACSR, CRIS
President of the Insurance Community Center & University
I was hoping that you could give me some direction on how I would
property insurance the BI on a cluster of 4 radio stations. they
are all broadcast out of one building, but have four different
transmitter/tower locations. AMWins, for one, has asked in the
past for a business income for each station. Not sure how to address.
If one tower goes down, of course, not advertising going out over
the air. But, if the studio burns down, all four stations are
dark. So, I have five locations, one studio, four different transmitter/towers.
the income is not equal in all four stations, but lost as to tell
the insured what to do. Blanket coverage is one way we have addressed,but
it costs more.
Answer:
1. You must make certain you have your property correctly identified
on the policy--i.e. all towers, etc
2. Absolutely you have to blanket this coverage because of the
reasons you outlined, as well as others that could be resultant
3. You have to have clarity concerning the definition of "blanket"
and that it will pay for the resultant damage to properties that
are NOT directly damaged due to a covered loss.
4. You must make sure there is NO exclusion for radio and tv antennas
in the cause of loss form attached to the Business Income Policy
5. Verify the named insured is correct for all the structures
and they are all the named insured 6. If they have any dependency
for transmissions from an IPP make sure you have that covered
with Dependent Property and Utility Interruption 7. Same is true
for public utilities that you need direct and indirect coverage
on utility interruption
There are
many more issues to consider on this type of risk but this will
give you some of the areas for you to consider.
Question
2 -
Water Tank Leakage
Our insured is a Hydro cut water jet shop. They
cut metals with high pressure water and abrasives. Within their
facility they have (3) 800 gallon water tanks to supply their
CNC cutting machines. Should the tanks leak or rupture causing
damage to their property where would this coverage lie?
Answer
by
Laurie Infantino, AFIS, CIC, CISC, CISR, ACSR, CRIS
President of the Insurance Community Center & University
1. If you have Equipment Breakdown on the policy AND the leakage/rupture
of the tank is caused by a “breakdown” on the EB policy
then the resultant damage to the property from the “accident/breakdown”
would be covered on the EB policy
2. If the loss is just caused due to the tank leaking, the typical
property policy will specifically exclude this cause of loss.
You would have to look at a form that has coverage for tank leakage
AND consequential loss due to tank leakage.
Question 2a:
Also if they have $300,000 Tenant Legal Liability covering leakage
would the water going to a neighboring tenants be covered? No
Flood insurance anywhere.
Answer 2a:
Tenants Legal Liability covers that which is in the care, custody
or control of the insured NOT damage to neighboring tenants. You
would look for coverage for that claim on the CGL assuming the
occurrence is covered on the form.
More Questions and Answers are on the Homepage of the Insurance
Community Center www.insurancecommunitycenter.com
To ask a question of the Insurance Professional at the
Community please click below
Click
here to ask a question
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| Recently
Added Community Resources |
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NEW
Glossary Term
Anti-Indemnification
Each state within in the
US have passed statutes that limit the ability of one party to
transfer legal liability for an act to another party in a contract
or agreement. These statutes are not consistent state to state
and can vary widely. For example, one state may prohibit the transfer
of any liability in circumstances wherein the transferring party
contributed in any manner to the injury or damage. Another state
may restrict transferring only the sole negligence of the transferor.
Most states focus their statutes on construction contracts and
limit the ability of either the property owner or the general
contractor from transferring sole negligence to the other contractual
party. Some states have included language in their law that prohibits
transference of so called ‘orphan share’ liability.
This is referring to the situation where the general contractor
is attempting to require all sub-contractors to assume liability
on behalf of the general contractor, whether or not the specific
subcontractor contributed in any manner to the third party loss.
Dram
Shop Law
This statute holds any strictly liable if they sell alcoholic
beverages to an obviously intoxicated person. The purpose of these
laws is to place responsibility upon a party who makes a profit
from selling alcohol to patrons. Some states’ dram shop
laws also include language regarding the prohibition and liability
of an establishment serving or selling alcohol to a person under
the legal drinking age. The majority of states have laws regarding
the sale and distribution of alcohol, but the language varies
widely among the various states and occasionally changes radically.
As an example, California recently removed the application of
strict liability from establishments that sell alcohol, even to
an obviously intoxicated person.
Click
right to access the entire glossary.
Check out the Insurance Community Glossary new terms are
being added daily. Looking for a definition that's not
in our Insurance Glossary list?
Click
here to request a new definition |
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| Recently
Added University Resources |
Audio
Presentation
Business in the Home
In this audio we will be discussing the background on home based businesses
in the United States; unique insurance exposures for businesses in the
home and insurance solutions; and, will end with a discussion of endorsements
and insurance policies that are available.
Our discussion on insurance forms will be based on the ISO Homeowners
series with the current edition date of May 2011. Individual states
have their own amendatory forms that should be reviewed as well as review
of specific insurance company form language.
Click
Here for Sample of the Audio Presentations
CHECKLISTS
The Insurance Community University has added more coverage and exposure
checklists.
Recently added is the CyberLiability Checklist
Click
Here for Sample of the Checklists |
