Masonry Magazine March 1965 Page. 6
A-Accidents
There is a variance of opinion in the courts concerning exactly what constitutes an accident, however. Where regular operations of a contractor include exposures likely to produce such conflict of opinion, it would be well to resolve questions of coverage in advance of a loss.
A roofer, for example, could meet with company underwriters and engineers to determine the precautions necessary to protect property from rain damage. General agreement should be sought then to consider damage in spite of those usual precautions to be accidental. In any event, it is wise to seek the help of company accident prevention men in such situations to minimize the possibility of loss.
B-Automobiles
The exclusion refers to automobiles away from the insured's premises. Exactly what constitutes an automobile by policy is a big subject.
C-Watercraft
This parallel exclusion applies to watercraft away from the insured's premises. It, too, is an exposure better handled in a separate policy designed for the purpose.
D-Aircraft
Deleted entirely. The Automobile, Watercraft and Aircraft Exclusions do not apply to operations performed by other independent contractors, nor to liability assumed under an insured contract.
E-Employee Injuries
Injury to employees of the insured and obligations under Workmen's Compensation, Unemployment Compensation or Disability Benefit laws are excluded to avoid conflict with such policies.
F-Nuclear Hazards
Obviously a special risk, work involving nuclear facilities is presently insurable only through pools of insurance carriers in co-operation with Atomic Energy Commission.
G-War Risks
War, civil war, insurrection, rebellion or revolution risks and expenses are standard exclusions.
H-Contractual Liability
As mentioned under the heading of Contractual Liability, the basic policy excludes liability assumed under any contract or agreement other than those few defined; that is, written lease of premises, easement, municipal ordinance, sidetrack, elevator or escalator maintenance agreements.
I-Liquor Liability
Liability imposed by law under statutes or ordinances pertaining to the sale, gift, distribution or use of alcoholic beverages is excluded as respects persons in such business or as owners or lessors of property used for that purpose. Some authorities feel that the present policy form does provide a degree of coverage for those not in the alcohol business and those who do not own or lease such property, but there is general agreement that a separate Host Liquor Liability Policy or endorsement is the only way to be sure.
J-Explosion, Collapse or Underground Damage
The basic policy excludes property damage arising out of explosion, collapse or underground damage, but the exclusions (any one, two or all three of them) apply only to certain classifications of work. Because most policies are none too clear in this respect, it pays to become familiar with these exclusions and then examine each policy to determine if any of these exclusions apply to your operations:
Exclusion "x"
Excludes property damage arising out of blasting or explosion, other than the explosion of air or steam vessels, piping under pressure, prime movers, machinery or power transmitting equipment.
Exclusion "c"
Excludes property damage arising out of collapse of or structural injury to any building or structure due to grading of land, excavation, burrowing, filling, back filling, tunneling, pile driving, coffer-dam work or caisson work or to moving, shoring, underpinning, raising or demolition of any building or structure or removal or rebuilding of any structural support thereof.
Exclusion "u"
Excludes injury to or destruction of wires, conduits, pipes, mains, sewers and other similar property or any apparatus in connection therewith below the surface of the ground, if caused by use of mechanical equipment for the purpose of grading of land, paving, excavating.
THE AUTHOR
Walter T. Derk is Assistant Vice President of the Fred S. James & Company, national brokerage firm with headquarters in Chicago. He has over 19 years of experience in the casualty insurance field and is one of the leading national speakers on this subject. Mr. Derk has lectured architectural classes at the University of Illinois on the subject of contract specifications and is the author of many comprehensive articles on insurance.