Masonry Magazine December 1983 Page. 25
Insurance
Insights...
DO YOU ENTER INTO
CONTRACTS?
Sure you do. So do most business firms. So let's take a look at the liability that might be involved.
There are three ways in which a person can become legally obligated for damages:
* Through negligence his or her own or that of someone for whose action he or she bears the responsibility;
* Through breach of contract-for example, a breach of warranty of fitness or suitability of a product; and
* Through assuming the liability of others-frequently in connection with hold-harmless agreements, purchase orders, sales contracts, construction contracts and sidetrack agreements.
Contractual Liability, or "liability imposed by contract"-creates risk where none existed before. The scope of such an obligation is not well-established because it can be anything a resourceful technician might conceive, with no two contracts being necessarily alike. Therefore, such exposure or risk must be excluded from the basic coverage, and when insurance is desired on a "buy-back" basis, a special coverage is available called Contractual Liability Insurance. However, this extension of coverage itself expands the list of exclusions in the basic policy... and this is the cause of all the problems. Commercial Insurance Service Inc. Newsletter, Charleston, W.Va.
Except when state laws require us to use State Workers' Compensation Funds or similar organizations, we always attempt to write Workers' Compensation, General Liability and Automobile Insurance in the same company. Besides the obvious marketing and pricing considerations, the reasons why we do this vary.
WHY PLACE ALL
YOUR COVERAGE WITH
THE SAME INSURANCE
COMPANY?
For example, there might be questions as to whether someone is acting as an employee, an independent contractor or member of the public. Regardless of that person's status, the question arises as to whether he or she is entitled to Workers' Compensation benefits or whether that person can pursue an action which would be handled by either General or Auto Liability insurance. The same ambiguity exists in the cases of mobile equipment. There can and have been differences of opinion as to whether mobile equipment was actually being transported at the time of loss. Would it be covered under the General Liability policy or the Automobile Liability policy? Similar arguments could be made on claims involving loading and unloading.
In all disputes as to which contract applies to a loss, the insured may have to defend him or herself, pay a judgment and then pursue separate actions against two or more carriers. All of this inconvenience can be eliminated if the different coverages are written with the same insurer. Commercial Insurance Service Inc. Newsletter, Charleston, W.Va.
ATTENTION!
SAFWAY
SCAFFOLD
OWNERS & USERS
IMPORTANT PRODUCT
INFORMATION ANNOUNCEMENT
SAFWAY has designed a new guard rail retention system for use on standard SAFWAY manufactured scaffolding. The new system, called a "G-Lock"" (patent pending), is not interchangeable with existing guard rail posts. The purpose of this announcement is to urge all users of SAFWAY products to convert their existing guard rail retention systems to the G-Lock system.
The existing guard rail system, which utilizes a threaded stud and wing nut to hold the guard rail in place, is safe when the scaffolding is properly constructed and used. However, it has come to our attention that improper construction and misuse of the existing guard rail system has resulted in a number of accidents, some of which have caused severe injuries. The G-Lock system is designed to minimize such improper construction and misuse.
For this reason the new G-Lock has been incorporated into all SAFWAY inventory and newly manufactured SAFWAY equipment. In addition, we are offering to convert all other existing SAFWAY manufactured equipment to the G-Lock system at our expense.
We urge you to replace your existing SAFWAY guard rail system with the G-Lock system. You simply need to bring your SAFWAY guard rail posts to your SAFWAY dealer for a no cost modification or exchange for modified SAFWAY guard rail posts.
If you have any questions regarding this announcement, contact your SAFWAY dealer or Robert Freuden, Manager, Customer Service, Safway Steel Products, P.O. Box 1991, Milwaukee, WI 53201 (414) 258-2700.
MASONRY-NOVEMBER DECEMBER, 1983 25