Masonry Magazine June 1968 Page. 30
What? Not Covered!
(Continued from page 6)
Company A damaged B's car. No coverage; the trailer falls within the definition of an automobile. Practical solution: Covered under Company A's Comprehensive Automobile Liability policy.
Example No. 2
Company A was sued by an irate competitor because of a slanderous statement made about him and the quality of his product. No coverage; there is no accident, no bodily injury, no damage to tangible property. Practical solution: Covered under a Personal Injury endorsement available for additional premium or Umbrella Excess Liability policy, the latter subject to a self-insured retention or deductible.
Example No. 3
Company A used mechanical digging equipment to excavate a lot adjoining an apartment building, causing its foundation to crack and the walls to partially collapse. No coverage; excavation work is subject to exclusions "x,c&u" as specified in the Comprehensive General Liability coverage part. Practical solution: Elimination of the exclusion on an annual or job to job basis in consideration of an additional premium charge. Possibly, but not necessarily, covered under an Umbrella Excess Liability policy, subject to a self-insured retention of $10,000 or $25,000.
Example No. 4
A department store delivered a gas stove to a customer's home and connected it as part of the sale price. After the delivery men left, the customer became ill and collapsed from fumes leaking from an improper installation. No coverage; this is a completed operation, as defined. Practical solution: Purchase of Completed Operations Products Liability coverage as part of the Comprehensive General Liability policy. Possibly covered under Umbrella, subject to the self-insured retention.
Example No. 5
Company A performed work for B under the teras of a purchase order which included a hold-harmless agreement protecting B against injury to A's employers. An injury occurred and A's employee sued B for negligence, whereupon B demanded defense and payment from A under the terms of the indemnity agreement. No coverage: The basic Comprehensive General Liability policy includes automatic coverage only for simple defined incidental contracts a lease of premises, easement, municipal ordinance, sidetrack or elevator maintenance agreement. Practical solution: Purchase of Blanket Contractual Liability coverage via endorsement or specific insurance applicable to that one agreement. Possibly covered under Umbrella, subject to the self-insured retention.
Example No. 6
Company A's employee negligently caused injury to B, whereupon he sued not only Company A but the employee as an individual. No coverage for the employee as an individual; he is not included in the definition of persons insured. Practical solution: Employees may be added as additional insureds for a premium charge. May be covered under Umbrella, subject to the self-insured retention. Discuss advisability of doing so with your insurance representative.
Example No. 7
Company A delivered a quantity of the wrong material to B, causing delay and additional expense. No coverage; there was no occurrence (accident) as defined, nor was there bodily injury or damage to tangible property of others. Practical solution: None; a business expense.
Example No. 8
Company A opened a branch office in the Bahamas, where an employee negligently caused injury to B. No coverage; the policy territorial definition limits coverage to claims occurring within the U.S., its territories, possessions or Canada. See definition for additional coverage as respects air space, international waters and products sold within covered territory, then taken elsewhere. Practical solution: Purchase of foreign liability coverage via endorsement or separate policy. Umbrella likely covers, subject to the self-insured retention.
Example No. 9
Company A manufactured and sold a metal part which cracked in use, causing damage to the bigger machine in which it was installed. No coverage in the absence of Products Liability insurance. Practical solution: Buy the coverage as part of the Comprehensive General Liability policy. Possibly covered under Umbrella policy, subject to the self-insured retention. Replacement of the part itself is always excluded.
Example No. 10
Company A was doing plumbing work, using mechanical equipment to dig a hole to make a connection when they struck a telephone cable, disrupting service for six hours. No coverage; underground damage is an excluded hazard under the plumbing classification of operations. Practical solution: Eliminate the exclusion by endorsement on an annual or job to job basis; where possible, use hand tools to dig; Umbrella may cover, subject to the self-insured retention.
What? Not Covered! will be continued in next month's MASONRY. Areas to be covered in future months will be Comprehensive Automobile Liability, Umbrella Excess Liability, Reservation of Rights Letters, Claims in Excess of Policy Limits, Statutes of Limitations, Policy Limits, Late Reports of Accident and Punitive Damages. Be Sure to keep your issues for future reference.