Masonry Magazine September 1966 Page. 8
Insurance For Contractors
(continued from page 6)
Application to contractors' equipment. The old definition was quite difficult even for those of us in the business. It will pay any contractor to spend a few minutes going over the new list, but again the problem becomes academic when you have your General and Automotive Liability exposures insured in the same company for the same limits. The latter course is urgently recommended.
A brief reference to calculation of premium in accordance with the company's rules, rates and rating plans under "Conditions" replaces the old definition of premium bases in the jacket, although companies may restore them in the coverage parts applicable. To be certain they are available, I have restated them in Payroll Audit Procedures.
A new condition of particular importance under "Insured's Duties in the Event of Occurrence, Claim or Suit" requires taking prompt and reasonable steps to prevent other injury or damage.
Property Damage resulting from certain Explosion, Collapse or Underground hazards is properly restricted to operations identified in the policy by a classification code number which includes the symbols "x, c or u." The former version referred to classifications listed in the insurance company's manuals, to which few contractors had any access.
The new forms will be used by most companies in renewing policies as they expire starting in the fall of 1966.
WHY NEW EXCLUSIONS?
Sprinkled throughout these forms are new conditions, limitations and exclusions which restrict rather than extend coverage, starting with what will be defended by the insurance company. The definition of covered first aid is more narrow, the list of excluded underground damage longer. Exclusions under Completed Operations and Products Liability are considerably expanded, and so on.
None of this is particularly surprising to those of us who have watched the courts repeatedly stretch the original intent of liability policies beyond anything contemplated by the insurers or the amount of the premium collected. These restrictions, then, are mostly designed to bring the language back down to earth and original intent. As such, I do not think of them as being really new or unreasonable.
The more important points of coverage, including new extensions and exclusions are concisely summarized under pertinent headings in the following pages.