Masonry Magazine July 1967 Page. 6
Insurance for Contractors
Automatic Builders' Risk or Contractors'/Builders' Risk Completed Value policies are available. What is available in your area should be determined by your insurance representative, who should make known what options you have and determine which policy is recommended for you.
Even the perils covered by Builders' Risk and Installation Floater policies vary; they may insure against fire, lightning, the perils of Extended Coverage (windstorm, hail, explosion, riot, civil commotion, aircraft, vehicles, smoke), Vandalism and Malicious Mischief or be so-called "all-risk" floaters designed to include still other risks. The latter are subject to variable deductible amounts, normally not applicable to the basic fire policy perils. (This is probably as good a time as any to stress that "all-risk" is a relative, not an absolute term; there are exclusions applicable, although the coverage is decidedly broad.)
The Inland Marine policy form applicable to contractor's equipment, other than vehicles designed for use on public highways, is called an Equipment Floater because it applies to things of a mobile or "floating" nature. Almost anything movable can be insured, whether a large crane, power shovel, caterpillar tractor, lift truck or small tool. Most large units carrying high values are specifically scheduled on such policies, while a blanket amount takes care of smaller items. Coverage can be made to automatically apply to new or replacement equipment. Automatic coverage for leased equipment usually requires a specific policy statement or endorsement to that effect.
Coverage is largely tailor made to suit the exposure. It may apply to named perils or be written "all-risk," sometimes a combination of the two. To provide protection against meaningful losses at a reasonable premium level, your insurance representative should arrive at a suitable deductible amount. If the exposures can be clearly separated, there is no reason why differing deductibles cannot be selected.
Premium rates are largely negotiated but based upon loss history; in general, elimination of petty pilferage claims is preferred to ground-up coverage on the presumption that any insurance company is going to want more than a dollar of premium for every dollar of routine loss they are called upon to pay. The small ones are best chalked up as a business expense.
The proper arrangement of coverage, deductibles and premiums demands imagination as well as the experience of a skilled professional.
ARCHITECTS' & ENGINEERS' PROFESSIONAL LIABILITY
A section devoted to Architects' & Engineers' Professional Liability in something called Insurance For Contractors may seem to be a little afield, but there is a close relationship between the two.
Architects and engineers have been prominent among those expressing interest in our first edition, both because of some responsibility for insurance specifications in contract documents and because of liability exposures they themselves have in common with contractors. It is only natural to go one step farther now in discussing the exclusion which appears in Contractual endorsements covering contractors as well as General
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A.L.A. File Div. 4
1965 CE Spec
Data file S-a
MASONRY July 1967