2016/2017 SHEA HOMES PARTNERSHIP INSURANCE PROGRAM (SHPIP) NEW ENROLLMENT PACKAGE

Transcription

1 2016/2017 SHEA HOMES PARTNERSHIP INSURANCE PROGRAM (SHPIP) NEW ENROLLMENT PACKAGE California - (Excluding: The Dunes (Surf House/Sea House/Beach House); Meadow Walk; RiverPark Legacy infrastructure; Baker Ranch infrastructure; Rice Ranch; The Polo Club; Vineyards) Dear TradePartner: Welcome to Shea Homes and the Shea Homes Partnership Insurance. SHPIP is administered by ORION Risk Management. Enclosed you will find the forms that must be completed in order to properly enroll in SHPIP. Enrollment is mandatory for all active TradePartners. Sub-tier contractors of all levels are also required to enroll and you must provide a copy of these forms to your subcontractors. Please note that your enrollment package is NOT complete until you have submitted enrollment forms 1-4 in addition to evidence of your Workers Compensation and Commercial Automobile Liability coverage as detailed in the attached Insurance Requirements. Your completed forms should be returned to your Shea Homes Contracting/Purchasing Associate. Upon completion of your SHPIP enrollment by ORION, we will provide you with a user name and password to access our website that will provide you with all the information you need in reference to the program (i.e. copy of SHPIP enrollment certificate, copy of the SHPIP Manual and the ability to report your monthly payroll online). If you have any questions regarding the program, please contact us. Sincerely, Trisha Engelhart, CIC, CRM, CISR, CRIS Program Director Main Line: FAX: tengelhart@orionrisk.com Avona Corser, CIC Sr. Program Administrator Direct Line: Fax: acorser@orionrisk.com Joe Prather Program Administrator Direct Line: Fax: jprather@orionrisk.com

2 2016/2017 Summary Shea Homes maintains an insurance and risk management program designed to protect the interests of all enrolled parties involved in the process of constructing a project. One overall program is intended to provide protection for Shea Homes, TradePartners, and sub-tier contractors of all levels involved in the construction process. Coverage The program in California includes Workers Compensation (for eligible TradePartners), General Liability and Excess Liability coverage. An individual Workers Compensation policy will be issued to each eligible TradePartner enrolled in SHPIP. The liability program is written on a master policy basis, with Certificates of Insurance provided to each enrolled TradePartner and their enrolled sub-tier contractors of all levels. [Sub-tiers must be enrolled.] Not included in SHPIP are coverages such as Automobile Liability and contractor s tools and equipment. Shea Homes requires evidence of conventional Workers Compensation with Employers Liability and Automobile Liability insurance, as described in the attached TradePartner Insurance Requirements document. Evidence of such coverage must be provided by a Certificate of Insurance. Below are some of the benefits of SHPIP: Higher limits for all enrolled TradePartners Consistent safety & loss prevention procedures for all TradePartners Broader coverage Management of claims coordinated by one insurer Reduced litigation expense Long-term insurer partnership Completed Operations coverage up to the statute of limitations Reduced TradePartner disputes

3 2016/2017 Summary (continued) SHPIP Costs SHPIP applies to all enrolled TradePartners. Workers Compensation and General Liability (GL) exposures (payroll or revenue) associated with Shea Homes should be excluded from conventional programs. This will prevent double-charges in premiums for exposures performed on Shea Homes jobsites. General Liability - SHPIP G/L costs are calculated using a flat rate. The California rate is 2.5%. The cost is applied to each payment for work vouchered in the same period. For example, work vouchered from the 1st through the 15th of the month will be paid on the 15th. At the same time, the SHPIP G/L cost will be withheld for the same time period from the check issued on the 15th of the month, thus, payments will be net of SHPIP credits. Workers Compensation - SHPIP W/C costs are determined by applying each TradePartner s current conventional modified rate, per class code. This modified rate is multiplied against the monthly payroll as reported by the TradePartner via the ORION website ( To eliminate a potential disparity in matching the expense with proper period of exposure, an insurance cost offset that is equal to the TradePartner s average monthly Workers Compensation cost will be applied during the initial enrollment month. This is a one-time offset, occurring at the inception of enrollment, by the issuance of a special debit memo. Upon completion of work for Shea Homes, the final month s SHPIP cost will be applied to this offset and should result in a small adjustment to clear out any outstanding balance. If re-enrollment occurs in the future, a new estimate will be generated. This initial estimated cost does not eliminate a TradePartner s obligation to timely report their first month s payroll by the 10th day of the following month.

4 TradePartner Responsibilities 1. Complete SHPIP Enrollment forms. 2016/2017 Summary (continued) 2. Notify Broker/Insurer of participation in SHPIP and remove all Shea Homes on-site payroll/revenue exposures from conventional policies that have coverage provided by SHPIP. 3. Comply with all applicable administrative procedures, including claim reporting and safety. 4. Include SHPIP provisions in all sub-tier contracts of all levels. 5. Maintain and provide evidence of appropriate insurance coverage for Shea Homes work performed away from project site locations. These are exposures not intended to be covered by SHPIP. 6. Maintain Workers Compensation payroll records for work performed on any Shea Homes jobsite, including allocation for each class code, for audit purposes. 7. No later than the 10 th day of each month, report payroll exposure for the previous month via the ORION website ( even if zero. 8. Notify Shea Homes of Workers Compensation conventional policy changes, by providing rate and declaration pages upon conventional policy renewal. It is imperative that the properly completed enrollment package be submitted once a bid has been awarded and prior to inception of the awarded contract so that each individual company is effectively enrolled in the program and issued a policy by the insurer. Under no circumstances will coverage be back-dated.

5 TradePartner Insurance Requirements California 2016/2017 Policy Year A Certificate of Insurance must be provided with SHPIP enrollment and upon each renewal of your conventional policies thereafter. The certificate must: 1) name Shea Homes LP/Shea Homes Inc/SHALC GC Inc as Certificate Holder 2) list all subsidiaries or DBA s covered by the policies shown on the certificate 3) show complete insurance carrier names, as listed in AM Best Property & Casualty Guide 4) include only carrier(s) rated not less than A-, VIII by AM Best & Co. 5) not be project or job-site specific 6) be completed in its entirety and signed 7) evidence the following coverage: Commercial Automobile Liability of at least $1,000,000 combined single limit to include o Any Auto or o Owned, Hired & Non-Owned Autos or o Scheduled, Hired & Non-Owned Autos or o If your company owns no commercial vehicles, you must provide evidence of coverage for Hired & Non-Owned Auto Liability. In addition, provide a signed statement on your company letterhead indicating that you do not have any company owned autos and do not have a business auto policy. Workers Compensation State Statutory Limits Employers Liability limits of at least o $1,000,000 Each Accident o $1,000,000 Disease - Policy Limit o $1,000,000 Disease - Each Employee Workers Compensation Declaration/Rate Pages must include: 1) your company name (insured); 2) insurance carrier name, policy # and policy term; 3) class codes, descriptions and base rates; 4) all credits and surcharges applicable to base rate. [Note: Binders are only acceptable for 60 days from effective date.] Certificate Holder Info: (ensure holder reads Shea Homes LP/Shea Homes Inc/SHALC GC Inc) Shea Homes LP/Shea Homes Inc/SHALC GC Inc c/o Orion Risk Management 1800 Quail Street, Suite 110 Newport Beach, CA92660 Attach certificate(s) and WC Dec/Rate pages to SHPIP Enrollment Package Note: Do not mail any renewal certificates. Renewal certificates must be uploaded onto the ORION website within 30 days of renewal date. WC Rate/Declaration pages must be uploaded onto the ORION website within 60 days of renewal date. The above requirements are for certificate tracking purposes only and do not alter the insurance obligations under your contract in any way.

6 Onsite Start Date: Enrollment Form (SHPIP1) All items must be completed in their entirety. Shea Homes Division: California No Cal So Cal San Diego (check one) TradePartner Name: Address: City: State: Zip: Main Phone: Description of Service (contracted for Shea Homes): Sub-tier contractor for (if applicable): Your Shea Homes Contact: Title: Primary Contact: Title: Primary Contact Direct Phone: Secondary Contact: Title: Secondary Contact Direct Phone: (Secondary should be different from primary and is required for automated notices and program updates.) Entity Type: Corporation Partnership Sole Proprietorship Limited Liability Corporation Limited Liability Partnership Other: Name of Owner(s): Federal Employer ID #: Current Experience Modification: Effective: Workers Compensation Ins. Rating Bureau #: TO BE COMPLETED BY ORION: Vendor No: Effective: Page 1 of 4

7 Workers Compensation Cost Worksheet (SHPIP2) TradePartner Name: Labor Description Class Code Rate/$100 Payroll Estimated Shea Homes Annual Payroll (by Class Code) Program Design: Guaranteed Cost Large Deductible Self-Insured Dividend Plan Paid Loss Plan Incurred Loss Plan Other: Does your firm currently participate in ADR? Yes No If Yes, a copy of the union contract must accompany this enrollment package. Manual rates will be applied in the absence of accurate rate information. Page 2 of 4

8 All Sub-tier & Labor Suppliers Disclosure Form (SHPIP3) TradePartner Name: Below, please list all sub-tier contactors and labor (not material) suppliers that will be used on any Shea Homes jobsite. Or indicate No sub-tiers and/or labor suppliers used. 1) SUB-TIER CONTRACTOR COMPANY: CONTACT NAME: TITLE: ADDRESS: PHONE: Federal Employer ID# DESCRIPTION OF SERVICE(S): THIS SUB-TIER WAS PROVIDED A BLANK SHPIP ENROLLMENT PACKAGE ON: 2) SUB-TIER CONTRACTOR COMPANY: CONTACT NAME: TITLE: ADDRESS: PHONE: Federal Employer ID# DESCRIPTION OF SERVICE(S): THIS SUB-TIER WAS PROVIDED A BLANK SHPIP ENROLLMENT PACKAGE ON: 3) SUB-TIER CONTRACTOR COMPANY: CONTACT NAME: TITLE: ADDRESS: PHONE: Federal Employer ID# DESCRIPTION OF SERVICE(S): THIS SUB-TIER WAS PROVIDED A BLANK SHPIP ENROLLMENT PACKAGE ON: Page 3 of 4

9 Enrollment Package Checklist (SHPIP4) TradePartner Name: Please verify that the following documents are complete and attached. Enrollment cannot be processed unless all items are present and accurate. SHPIP1: Enrollment Form (Page 1) SHPIP2: Workers Compensation Cost Worksheet (Page 2) SHPIP3: Sub-tier & Labor Supplier Disclosure (Page 3) SHPIP4: Enrollment Package Checklist (Page 4) W-9 (completed and signed by TradePartner) - not required from sub-tier contractors Certificate(s) of Insurance for: Workers Compensation with Employers Liability and Commercial Automobile Liability coverage as described in the Insurance Requirements included in this package with certificate holder shown as: Shea Homes LP/Shea Homes Inc/SHALC GC Inc c/o Orion Risk Management 1800 Quail Street, Suite 110 Newport Beach, CA Current Workers Compensation Declarations including Rate Pages Copy of Workers Compensation Deductible Endorsement with Retained Losses (if applicable) The information and statements contained in this enrollment package are true and correct: Completed by: Signature: Title: Date: PLEASE RETURN COMPLETED FORMS AND REQUIRED DOCUMENTS TO YOUR SHEA HOMES CONTRACTING/PURCHASING ASSOCIATE Page 4 of 4

10 Residential Wrap Insurance Policy Disclosure Form In compliance with California Civil Code Section , the following disclosures regarding the Wrap Insurance Program (commonly referred to as Shea Homes Partnership Insurance program, SHPIP ) applicable to the subject residential project are provided on behalf of Shea Homes Limited Partnership or Shea Homes, Inc. (as indicated in Section 1.2 of your Construction Contract). The terms of coverage are set forth in the Wrap Insurance Program policy form, and descriptions of such coverage terms herein do not alter, amend or supersede any terms contained in the Wrap Insurance Program policy or policies, if applicable. The Wrap Insurance Program provides coverage as specified below in connection with the performance of the work at the subject residential project: Key Wrap Insurance Program Terms: Scope of Coverage: Workers Compensation General Liability Excess Liability (1 st, 2 nd & 3 rd Layer) Carrier(s): Liberty Mutual Fire Insurance Company General Security Indemnity Co of Arizona Allied World Assurance Co Inc Starr Surplus Lines Insurance Co Policy Term: 8/1/2016 8/1/2017 (Property Damage and Bodily Injury coverage arising out of Completed Operations extends through applicable statute of repose. Completed Operations coverage applies only to homes that close escrow during the policy period but extends through applicable statute of repose.) Workers Compensation Limits of Liability: Coverage A Workers Compensation Statutory Coverage B Employers Liability Bodily Injury by Accident/each accident $1,000,000 Bodily Injury by Disease/each accident $1,000,000 Bodily Injury by Disease/each employee $1,000,000 Primary Policy Limits of Liability (Shared by All Insureds for All Projects): Coverage A Bodily Injury and Property Damage $3,000,000 Coverage B Personal and Advertising Injury Personal and Advertising Injury Limit $3,000,000 Bodily Injury and Property Damage General Aggregate Limit (other than Products Completed Operations) $6,000,000 Coverage D Construction Damage Products Completed Operations Aggregate Limit $NIL Self-Insured Retention for Coverage D Construction Damage: $15,000,000* *per occurrence or per claim. None allocated to contractors.

11 Residential Wrap Insurance Policy Disclosure Form (continued) 1st Excess Policy Limits of Liability (Shared by All Insureds for All Projects): Each Occurrence $10,000,000 General Aggregate $10,000,000 2nd Excess Policy Limits of Liability (Shared by All Insureds for All Projects): Each Occurrence $15,000,000 General Aggregate $15,000,000 3rd Excess Policy Limits of Liability (Shared by All Insureds for All Projects): Each Occurrence $25,000,000 General Aggregate $25,000,000 Wrap Insurance Credits Contractor cost for participation in the Wrap program will be calculated as follows: Workers Compensation: Contractor will only have insurance costs deducted for exposure developed on-site at Builder s projects where coverage applies. Inasmuch, Contractor must provide by the 10th each month its actual payroll developed on Builder s projects during the prior month. Builder will then calculate the insurance cost based upon Contractor s practice policy rates. Contractor must supply Builder or Builder s insurance representatives its in-force workers compensation rates within 30 days of each policy s effective date. Failure to supply rates in the required timeframe will result in Builder developing a rate for Contractor. Failure to supply payroll in the required timeframe will result in an estimation of payroll for insurance cost calculation purposes. General Liability: Contractor will be charged 2.5% of all payments from Builder as consideration for Builder providing liability coverage. Deductible Claim Retention Amount In the event of a Products/Completed Operations claim where Contractor is deemed by Builder to be responsible, Contractor is responsible for a $5,000 per occurrence deductible. In the event of a construction defect lawsuit the Deductible/Claim Retention Amount does not apply. Any deductible, co-pay, self-insured retention or claim retention amount for covered construction defect litigation is paid by Builder.

12 Residential Wrap Insurance Policy Disclosure Form (continued) Rolling Wrap Additional Terms: If the Wrap Insurance Program covers more than one work of improvement, the following additional disclosures are provided: Number of Units to be covered (as indicated by policy application): 2,478 Estimate of Available Remaining Limits: $ 6,000,000 General Aggregate $ NIL Products/Completed Operations Aggregate $ 3,000,000 Personal and Advertising Injury Limit $ 3,000,000 Each Occurrence Limit $ 50,000,000 Each Occurrence and Annual Aggregate-Excess Liability (various insurers) The Estimate of Available Remaining Limits is made based upon information available on the date of this disclosure and is made to the best of our knowledge. It may not accurately reflect the amount of insurance available, if any, subsequent to the date of this disclosure. The Available Remaining Limits specified above may not be accurate due to variations in the: Timing of claims, losses, occurrences, incidents or circumstances Reporting of claims, losses, occurrences, incidents or circumstances to broker or carrier Carrier and/or third party administrator response to reports or notices of claims, losses, occurrences, incidents or circumstances Coverage determinations by carriers and/or third party administrators Carriers reserve setting methodologies Inconsistency in carriers reserve settings Data or information available regarding SIR satisfaction