Masonry Magazine July 1968 Page. 27
WHAT
NOT COVERED
by Walter T. Derk-MCAA Insurance Consultant
A series of articles composed of a concise summary of principal hazards excluded or omitted from the newly revised liability insurance policies. Designed to bring the fine print into better focus.
MASONRY is pleased to be able to bring you this second series of articles on insurance by Walter T. Derk, MCAA's Insurance Consultant. Mr. Derk's book, "Insurance For Contractors," is now in its fourth printing with over 30,000 copies in circulation.
PART III
POLICY EXCLUSIONS
The last big hurdles we must clear to have an insured loss after successfully passing over the insuring agreements and definitions are the specific exclusions printed on each coverage part.
Here, too, every last comma is vital to correct interpretation of the company's intent, and we shall neither attempt to repeat them verbatim nor paraphrase them here. Instead, we shall give a rundown of them by subject matter, then illustrate by example how most apply:
(1) Contractual Liability, except for incidental contracts
(2) Automobiles
(3) Aircraft
(4) Watercraft
(5) War, civil war, insurrection, rebellion or revolution
(6) Liquor Liability arising from its sale, manufacture, distribution or the use of premises for such purposes
(7) Employee injuries
(8) Damage to property owned by the insured
(9) Damage to property occupied by the insured
(10) Damage to property rented to the insured
(11) Damage to property used by the insured
(12) Damage to property in the care, custody or (not and) control of the insured
(13) Damage to property over which the insured has physical control
(14) Damage to the insured's premises following transfer of ownership to someone else
(15) Injury or damage caused by failure of the product or work to perform as intended (in the absence of an active malfunction) as a result of design, specification or similar error
(16) Damage to the insured's product itself
(17) Damage to the insured's work or materials or equipment
(18) Expense of recall and replacement of insured's work or product
(19) Nuclear facility hazards
(20) Water damage (Now a non-standard exclusion applicable only in certain areas of the country. Listed here as a precaution.)
(21) Explosion, collapse and/or underground damage as respects specific classifications of work:
Exclusion "x"
Excludes property damage arising out of blasting or explosion other than the explosion of air or steam vessels, piping under pressure, prime movers, machinery or power transmitting equipment.
Exclusion "c"
Excludes property damage arising out of collapse of or structural injury to any building or structure due to grading of land, excavating, borrowing, filling, back-filling, tunneling, pile driving, coffer-dam work or caisson work, or to moving, shoring, underpinning, raising or demolition of any building or structure, or removal or rebuilding of any structural support thereof.
Exclusion "u"
Excludes property damage to wires, conduits, pipes, mains, sewers, tanks, tunnels, any similar property and any apparatus in connection therewith beneath the surface of the ground or water, caused by and occurring during the use of mechanical equipment for the purpose of grading land, paving, excavating, drilling, borrowing, filling, back-filling or pile driving.
Example No. 1
Company A supplied B with a shipment of material, not realizing that B's purchase order form included an indemnity or hold-harmless agreement. A's employee fell while making the delivery, then sued B. B demanded defense and payment under the indemnity agreement