Masonry Magazine May 1967 Page. 8
Insurance For Contractors
(Continued from page 7)
WHAT ARE "ADEQUATE" LIMITS OF LIABILITY
Insurance people are often requested to determine exactly what limits of liability are adequate for a given risk, an impossible task. At best, we can recommend minimum levels consistent with those carried by a majority of contractors doing similar work. The required limit depends, finally, on how much actual or potential risk the insured chooses to insure and how much he is willing to retain himself.
Theoretically, the maximum requirement is limited only by the solvency of the insured, and to be properly covered, he would require limits equal to at least the total amount of his assets. Certainly, this is not often practical, but most firms of standing decide in favor of conservatism; that is, high enough limits to protect against a catastrophe loss, often with a deductible or self-insured layer below to reduce overall premiums.
In short, forget about insuring losses which can be paid out of petty cash; do buy coverage for major losses which threaten your entire business future.
Current cost of increased limits of liability is:
GENERAL LIABILITY
To Increase From $100/300,000 Bodily Injury
| To | % Premium Increase Opera- tions-Premises | % Premium Increase Other Hazards | + Flat Charge |
| --------------- | ---------------------------------------- | ----------------------------------- | ------------- |
| 300/300,000 | + 5% | + 4% | |
| 250/500,000 | 8% | 6% | $10 |
| 300/500,000 | 9% | 6½% | 10 |
| 500/500,000 | 11% | 9% | 10 |
| 500,1,000,000 | 19% | 15% | 35 |
| 1,000/1,000,000 | 24% | 20% | 35 |
| 500/2,000,000 | 32% | 27% | 85 |
To Increase From $10,000 Property Damage
| To | % Premium Increase P.P. Cars | Trucks |
| --------- | ------------------------------ | ------ |
| 25,000 | + 3% | + 9% |
| 50,000 | 8% | 14% |
| 100,000 | 12% | 18% |
| 500,000 | 27% | 32% |
(Continued next month)
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.
MCAA is popping its buttons...
To Increase From $50/50,000 Property Damage
| To | % Premium Increase | + Flat Charge |
| --------------- | ------------------ | ------------- |
| 100/100,000 | + 4% | $ 5 |
| 100/200,000 | 7% | 5 |
| 100/300,000 | 8½% | 5 |
| 100/500,000 | 11% | 5 |
| 250/500,000 | 22% | 20 |
| 250/1,000,000 | 26% | 20 |
| 500/500,000 | 35% | 45 |
AUTOMOBILE LIABILITY
To Increase From $100/300,000 Bodily Injury
| To | % Premium Increase |
| --------------- | ------------------ |
| 300/300,000 | + 4% |
| 250/500,000 | 6% |
| 300/500,000 | 7% |
| 500/500,000 | 10% |
| 500,1,000,000 | 13% |
| 500/2,000,000 | 17% |
| 1,000/1,000,000 | 21% |
With the recent 17th Annual Convention and Educational Trade Show another record breaker, we're "poppin' our buttons," with pride in all the loyal MCAA Members and Exhibitors and as a personal reminder of our Association, we're making the buttons available to you.
*HERE'S HOW YOU CAN HAVE THEM.* These buttons are identical to the one attached to your '67 Identification Badge and are ideal for all your suit coats and sport coats. You snap them easily right over the regular coat buttons. Instantly gives them that "Blazer Look". You can order yours Today, by sending check or money order. Per set of 3, $1.00 or individually priced at 35c. Order Today-We'll Mail Same Day.
MASON CONTRACTORS ASSOCIATION OF AMERICA
208 SO. LASALLE STREET CHICAGO, ILLINOIS 60604
MASONRY . May, 1967