Masonry Magazine March 1967 Page. 5
insurance for contractors
SECOND EDITION
Revised to include the new policy
forms and entirely new material on:
* Contract Bonds
* Architects' and Engineers'
Professional Liability
* Contractors' Equipment Floaters
* Builders' Risk Insurance
* Employee Benefit Liability
* Uniform Hold-Harmless Clauses
* Composite Rating
by
Walter T. Derk
Assistant Vice President
FRED. S. JAMES & Co.
Insurance Brokers and Consultants
Since 1858
PART V
Policy Extensions are covered in this month's feature
article on Insurance For Contractors. In addition The
Case For Uniform Hold-Harmless Agreements is pre-
sented. Keep this and every issue of Masonry.
POLICY EXTENSIONS
Having listed most of the exclusions and limitations
common to the basic Comprehensive General Liability
Policy form, we shall do the same for standard endorse-
ments designed to extend and broaden coverage:
A-Blanket Contractual Liability
Now that "occurrence" coverage is automatic under
new policy forms, we can move this extension to the
head of the list to accent its importance to anyone in
the construction industry.
Until a few years ago, we had to say that Blanket
Contractual Liability Insurance to automatically cover
all written agreements was available only to some of
the larger contractors; the market was fairly limited to
others. Most insurance companies have become more
reasonable about filling this need now, but not all.
Some call for submission of contracts for examination
within a stipulated time after execution to keep a check
upon the degree of liability assumed by the insured and
the premium developed to cover it. Occasionally, the
agreement is so dangerous that immediate re-insurance
is required.
Beware of so-called Blanket Contractual Liability
endorsements, which provide automatic coverage but
exclude broad form agreements. This common practice
employed by some insurance companies may lull the
insured into relying on his "automatic" coverage, only
to leave him completely uninsured when he needs the
protection most, when he agrees to assume sole negli-
gence of the indemnitee. Who decides whether a con-
tract is limited, intermediate or broad is anybody's
guess.
In my opinion, this severely limited form of Blanket
Contractual Liability coverage is worse than none at
all. Without it, the insured at least knows where he
stands and hopefully realizes that he must do something
to get a contract insured.
(Continued on page 7)