Masonry Magazine August 1968 Page. 27
What? Not Covered!
(Continued from page 16)
dorsement. Practical solution: Amendment of the contractual agreement as outlined in example No. 1.
Example No. 3
A service organization did work for the City of Chicago under a contract which included a clause indemnifying the city against injury or damage arising from such activity. A resident of the city was injured because of such operations and thereupon sued the service organization not because they were negligent, but because the contract agreed to indemnify the city, and, after all, who is the city, if not the citizens thereof? No coverage; the injured citizen cannot benefit as third party beneficiary under a contract with a municipality. Practical solution: The injured citizen still has a right to claim tort liability, which is covered under the Comprehensive General Liability policy. No action necessary on the part of the insured.
B-Host Liquor Liability
Normally this coverage which may be provided by separate endorsement or elimination of the liquor liability exclusion, limits coverage to statutory liability in a particular state or throughout the United States, resulting from the giving or dispensing of alcoholic beverages where civil damages are recoverable for injury or damage resulting therefrom. Such coverage excludes:
(1) The business of selling alcoholic liquors.
(2) Ownership of premises used for such purposes.
(3) Indemnity for payment of any criminal or quasi-criminal fine or penalty.
Example No. 4
Among the properties owned by a holding corporation was a large apartment building having stores and offices on the lower floors. One of these was a restaurant selling alcoholic beverages. Following the death of a patron in an automobile accident, the survivors pressed damages under the state's dram shop statute. No coverage; the host liquor liability endorsement excludes business enterprises relating to the sale of alcoholic beverages. Practical solution: Covered under regular liquor liability insurance normally purchased by the licensee protecting both the owner and licensee. Such coverage should be required of the tenant as part of the lease.
C-Broad Form Property Damage Liability
This extension is of value for those firms conducting operations away from their own premises by somewhat restricting application of the care, custody or control property damage exclusion. Nonetheless, the rider specifically excludes:
(1) Damage to property owned by the insured.
(2) Damage to property occupied by the insured.
(3) Damage to property rented to the insured.
(4) Damage to property given to the insured for storage or safekeeping.
(5) Damage to property to be worked on at the insured's premises.
(6) Damage to tools or equipment while being used in performing the work.
(7) Damage to property in the insured's custody for installation, erection or use in construction by the insured.
(8) Damage to property transported by the insured via motor vehicle or team.
(9) Damage to property during the loading or unloading of such vehicle.
(10) Damage to that particular part of any property away from the insured's premises being worked on at the time of loss.
(11) Damage to that particular part of any property away from the insured's premises out of which the injury or destruction arises.
(12) Repair or replacement of damage to that particular part of any property away from the insured's premises made necessary because of faulty workmanship.
(13) Damage to products manufactured sold or handled by the insured or work completed by or for the insured, out of which the accident arises.
Example No. 5
Company A damaged B's property while on A's premises. No coverage; the Broad Form Property Endorsement limits application of the usual care, custody or control exclusion only away from the insured's premises. Practical solution: Perhaps an Installation or Equipment Floater policy. Umbrella might cover, subject to the self-insured retention.
Example No. 6
An electrical contractor working on an extensive network of machinery damaged the module being installed. No coverage; that particular part being worked on at the time of loss is excluded. Practical solution: Consider an Installation Floater policy. Umbrella might cover, subject to the self-insured retention.
D-Personal Injury Liability
This extension which substitutes broader personal injury hazards in one, two or three divisions as defined does not apply to:
(1) Liability assumed under any contract or agreement.
(2) Wilful violation of a penal statute committed by or with consent of the insured.
(3) Advertising, broadcasting or telecasting activities.
(4) Injury sustained by any employee of the insured.
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