Masonry Magazine May 1967 Page. 6
Insurance For Contractors
(Continued from page 5)
higher is often enough to justify its purchase in lieu of a more conservative amount. Some of this advantage is offset at high deductible levels by the insurance carrier's inability to seek reimbursement from responsible third parties without an express monetary interest in the transaction. That is, if your collision damage should be $225 and the deductible $250, the company cannot help you recover the loss. They may do so when the amount of damage exceeds the deductible, of course.
TOWING
Applicable only to private passenger automobiles as respects emergency road service and towing of automobiles specifically insured. The normal limit of liability is $25 per disablement.
COVERAGE EXTENSIONS
Fleet Automatic Coverage
A fleet consists of five or more insured units and if automatic coverage is desired, a Fleet Automatic Endorsement is available without additional charge to pick up changes and additions to the schedule without the need to endorse midterm.
WORKMEN'S COMPENSATION AND EMPLOYERS 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, states 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 25 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 one year, $100 to $6,000. In other cases, all reasonable medical expenses are payable without specific limitation.
Several of those states which do limit medical benefits permit a voluntary extension, either $10,000 or $100,000 per employee, beyond legal requirements for payment of additional premium. Where desired, it is best to first determine whether the states in which you operate include such limitation and then establish the additional cost for voluntary extension by endorsement as illustrated in the following table:
ADDITIONAL MEDICAL BENEFITS
| | $10,000 | $100,000 |
| :------------ | :------ | :------- |
| Alabama | 2.5% | 4% |
| Arkansas | 1% | 1.5% |
| Colorado | 1% | 1.5% |
| Georgia | 4% | 6% |
| Indiana | 1% | 1.5% |
| lowa | 1% | 1.5% |
| Kansas | 1% | 1.5% |
| Kentucky | 1% | 1.5% |
| Louisiana | 1% | 1.5% |
| Missouri | 1% | 1.5% |
| Montana | 1% | 1.5% |
| New Hampshire | 1% | 1.5% |
| Oklahoma | 1% | 1.5% |
| Pennsylvania | 2% | 3.25% |
| Rhode Island | 1% | 1.5% |
| South Carolina| 1% | 1.5% |
| South Dakota | 1% | 1.5% |
| Tennessee | 3% | 4.5% |
| Vermont | 1% | 1.5% |
| Virginia | 2% | 3% |
Where the amount of additional premium so developed is small, a modest minimum charge may be applicable per state. Recommended.
# C-All States Endorsement
Your insurance carrier can endorse the policy without charge to provide Coverage A automatically in any state except those monopolistic Fund states which do not permit private insurance.
These are:
| Nevada | Washington |
| :------------ | :------------ |
| North Dakota | West Virginia |
| Ohio | Wyoming |
Coverage B is applicable in the United States of America, its territories, possessions or Canada to injury sustained, "by any employee of the insured arising out of and in the course of his employment by the insured, either in operations in a state designated in the policy declarations or in operations necessary or incidental thereto." Recommended.
# D-Longshoremen's and Harbor Workers' Act Coverage; Maritime and Federal Employers' Liability Act
If any any work involving maritime or railroad exposures is contemplated, it is important to endorse the policy to provide coverage under these Acts, which may prove applicable in lieu of a state's Workmen's Compensation Act.
# E-Endorsements Defining the Status of Executive Officers or Partners
Many states require an endorsement to clarify or define the scope of coverage provided under the applicable Workmen's Compensation Law as respects injury to corporate officers or partners. The law of your particular state should be examined in this re-