Masonry Magazine February 1967 Page. 25
Insurance For Contractors
Continued from Page 23
Charge, leakage or overflow of water or steam from plumbing, heating, refrigerating or air conditioning systems, standpipes for fire hose or industrial or domestic appliances, or any substance from automatic sprinkler systems, (2) the collapse or fall of tanks or component parts or supports thereof which are part of automatic sprinkler systems, or (3) rain or snow admitted directly into the building through defective doors, windows, skylights, transoms or ventilators, excepting loss due to fire or operations performed by independent contractors.
O-Damage to Property Out of Which the Occurrence Arises
The policy excludes damage (1) to the named insured's products or (2) to work performed by or on behalf of the named insured out of which the occurrence arises.
In other words, it is not designed to repair or replace the product or work which causes the damage. To do so would amount to a replacement warranty, again a business exposure directly related to quality controls and component workmanship. Where the claimed damage is confined to repair or replacement of a product or work performed, there is no coverage under Division IV of the policy.
P-Expense of Withdrawal or Recall of Insured's Products or Work
This new exclusion simply clarifies the original intent not to cover expense of withdrawal, recall or replacement of the named insured's products or work completed because of some known or suspected defect or deficiency.
Q-Failure to Perform as Intended
Another new exclusion designed to spell out that the policy is no guarantee that the products or work performed will function properly. This, of course, is also a business risk. If the failure to perform as intended is caused by a mistake or deficiency in design, formula, plan, specification, advertising material or printed instructions, there is no coverage. If, on the other hand, there is an active malfunctioning which causes bodily injury or damage to other property, there is coverage.
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.
FACTS
In 1965, there were more than 10 million 16-24 year olds out of school and in the labor force.
Three million - almost a third - hadn't completed high school.
In the 1966-67 school year, unless something is done about it, another 900,000 youngsters will walk away from their education too soon.
If this rate continues, 1975's labor force will contain 32 million adults with less than a high school education at a time when the nation's economy and the nation's business can't afford them.
These youngsters are tomorrow's skilled workers. In the next four years, the number of 16-24 year old workers will increase by 3.3 million - 43 percent of the total increase in the labor force for that period. Unless we convince them now of the need for educating and preparing themselves, they won't be ready when they're needed.
Statistics prove again and again that young people who drop out of school place themselves at a disadvantage.
The dropout is more likely than the graduate to be unemployed or to hold a poor paying and undesirable job.
The dropout has less chance to advance, and his job is more likely to be taken over by a machine.
Over a lifetime, the high school graduate earns 16 percent more than the person who completes only 1 to 3 years of high school and 80 percent more than one who does not finish eight years of school.
The college graduate can expect to earn two-thirds more than the high school graduate.
The unemployment rate for school dropouts, 16-21, is 15 percent, as compared with 8.4 percent for graduates.
Steel Scaffolding
that is right on the job for mason contractors
SALES - RENTALS - ERECTIONS
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PSS PATENT SCAFFOLDING CO.
DIVISION OF HARSCO CORPORATION
38-21 12th Street, Long Island City, New York 11101