Masonry Magazine June 1965 Page. 7
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.
Part VI
WORKMEN'S COMPENSATION AND WORKMEN'S LIABILITY
A detailed analysis of the standard Workmen's Compensation and Employers' Liability Policy form will not be made here because it does little more than agree to provide compensation and medical benefits to injured employees in accordance with the provisions of the applicable Workmen's Compensation Law. The variations and technicalities arise from differences in the Workmen's Compensation Acts of the various states, not from the policy itself.
The policy jacket, which more than anything else is a vehicle to establish effective and expiration dates, rates covered and premium rates applicable to payroll, refers to Coverage A-Workmen's Compensation, which agrees to, "pay promptly when due all compensation and other benefits required of the insured by the Workmen's Compensation Law." Coverage B Employers' Liability provides common law defense of the employer for employee injuries, usually subject to a basic limit of liability of $25,000, "for all damages because of bodily injury by accident, including death at any time resulting therefrom, sustained by one or more employees in any one accident."
POLICY EXTENSIONS
# A- Increased Limits Employers' Liability
In most states it is permissible to increase the basic limit of Coverage B from $25,000 per accident to $100,000 for approximately 2% additional premium, subject to a $20 minimum premium per year; an increase to $500,000 averages 3% additional premium subject to a $75 minimum premium per year. Recommended.
# B-Additional Medical Benefits
At last count, some 30 states limited by statute the amount of medical benefits payable to an injured employee, either in terms of dollars or period of time. The range was from 30 days to 100 months; $450 to $5,000. In other cases, all reasonable medical expenses are payable without limitation of any kind.
Several of those states which do limit medical benefits permit a voluntary extension beyond legal requirements for payment of additional premium, either in units of $10,000 or $100,000. Where desired, it is best to first determine whether the states in which you (turn to next page)
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.