Masonry Magazine January 1965 Page. 27
Special Report:
On a subject matter of vital concern to every responsible mason contractor
INSURANCE FOR CONTRACTORS
By Walter T. Derk, Fred S. James & Co.
The Mason Contractors Association of America is pleased to present this Special Report on "Insurance For Contractors". It is a comprehensive guide to liability exposures common to the Construction Industry and the Insurance coverages available to protect against them. The Report will cover General Liability, Property Damage, Contractual Liability, Illinois Scaffolding Act, Automobile Liability and Workmen's Compensation. Make sure you read this and every part of this masonry feature.
INTRODUCTION
Contractors, architects, association executives and insurance buyers in general have at various times asked me why the insurance industry did not do more to make its product understandable. They felt that a veil of mystery and legal mumbojumbo surrounded a subject which could someday mean the difference between profit or bankruptcy, and they were right.
Insurance is complicated, particularly for contractors. Just as the physical hazards vary from job to job, insurance specifications in the contract often contain subtle, but by no means minor, variations. Both rate careful scrutiny. To those willing to devoted sufficient time to the task, such attention is possible; to others it is a serious problem.
This guide, an outgrowth and extension of a series of talks on the subject of casualty insurance given before construction groups and others over the past several years, is intended to:
1. Outline basic hazards and common insurance coverages available to protect against them.
2. Summarize standard policy conditions, as well as the more important limitations and exclusions.
3. Review policy extensions available to cover specific situations.
4. Explain briefly the process of experience rating and premium determination.
5. Illustrate Retrospective Rating Plans, their advantages and disadvantages.
It is NOT intended to:
1. List all pertinent exclusions in detail. To do so would require use of the same diffuse terms and clauses found in the insurance policies themselves.
2. Interpret a particular policy or condition. Only a first-hand survey can supply the information required for such interpretation. Policy forms, too, are subject to constant revision.
3. Determine whether a given loss is "covered." A major advantage in even standard policy forms is the ability to tailor them as required, and there is no end to the variety of circumstances surrounding outwardly similar claims.
4. Suggest that all the coverage extensions mentioned are available to everyone. Their availability depends upon the size of premium involved, the contractor's loss history, the kind of work contemplated, the professional skill of your in-
This material is copyrighted by Walter T. Derk, 1963, and can not be reproduced in any manner without the written permission by both Mr. Derk and the MCAA.