Insurance Tips & Tricks. Jack J Demski

Transcription

1 Insurance Tips & Tricks Jack J Demski

2 Agenda History Briefing Liability General Liability vs. Marine Liability Work Comp Umbrellas Insurance Tips

3 You don t know Jack? Jack Demski Insurance Advisor/Agent 3 rd generation Specialties Cyber, Marine, International, Chemical, Dealerships Passions Activities, games, debate, competition

4 Insurance What is it? a practice or arrangement by which a company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium. a thing providing protection against a possible eventuality. Risk-transfer mechanism that ensures full or partial financial compensation for the loss or damage caused by event(s) beyond the control of the insured party

5 History Romans 14 th Century Italian city of Genoa Lex Mercatoria Merchant Law Later redefined in 1680 English Court as Maritime Law

6 History Lloyds Coffee House 1601 AD First Issued Document Protecting shipments, ships, and ventures Royal Exhange forms Society of Lloyd s Lord Chief Justice Reforms Merchant Law with Common Law 1906 the Marine Insurance Act Passed by English Parliament

7 "Hull and Machinery" (H&M) VS."Total Loss Only" (TLO) now extinct Re-insurance Marine insurance is often grouped with Aviation and Transit (cargo) risks, and in this form is known by the acronym 'MAT'. The Marine Forms have also adapted oper the years Insurance contract Maritime Insurance Scheduled Marine Cargo/Transit Marine Inland Marine

8 General Liability Tips CG We will pay those sums that the insured becomes legally obligated to pay as damages because of "bodily injury" or "property damage" to which this insurance applies. We will have the right and duty to defend the insured against any "suit" seeking those damages. However, we will have no duty to defend the insured against any "suit" seeking damages for "bodily injury" or "property damage" to which this insurance does not apply. We may, at our discretion, investigate any "occurrence" and settle any claim or "suit" that may result.

9 General Liability What? Damages to others as a direct or indirect result from our operations and location Where? Continental US, Canada Standard GL This gets more complex for Manufacturing and Services provided outside borders by US entities International/Global endorsement

10 General Liability The Worst Part CG section g Aircraft, Auto or Watercraft exclusion The Auto policy allows for buyback on Automobile coverage Aircraft coverage Aircraft Liability Watercraft coverage next slide

11 Marine Liability Policies for Marine exposure Marina Operators Legal Liability Marina Protection & Liability Marine General Liability Ocean Marine Liability Marine Contractor s Liability Ship Repairer s Liability Wharfinger s Liability harboring, anchorage, custody Endorsement Add-ons Auto including boats Auto included off-road exposure Bailee s Marine includes 3 rd party boats ETC

12 Comparison Marine Liability Damages to.. 1 st and 3 rd party While Operating Using Fixing Covers actions in the name of the Insured General Liability Damages to 1 st and 3 rd party While Operating Using Fixing Negligence only! Covers actions by the insured

13 Comparison ML Written for Maritime Law On and Over H20 Coverage on ALL open water GL Written for Criminal and Tort Law On and Over Land Coverage in USA & Canada

14 Recap ML Extended GL policy GL for Watercraft operations Ironic Situation We need both when Much like Auto insurance VS. Endorsements Mere buy-backs in coverage Strict wording Often times leave us open to interpretations Examples Questions?

15 Real Life Examples

16 Excess Liability Policy Excess Liability Policy Stand-a-lone policy that protects for claims excess of your base policies. Umbrella is an Excess policy, but Excess is not an umbrella Will only grant higher limits for one Liability You can have multiple Excess Policies Some Excess will cover designated underlying No occurrence limits, beside purchased amount

17 Umbrella Policy Umbrella Policy A coverall or catchall policy to increase liability limits of ALL underlying liability policies. Normally No Deductibles Dirty practices to lower pricing Underlying General Liability Work Comp Auto Liability Marine Liability Employers Liability Employee Benefits/practices liability

18 Umbrella Policy No Liability coverage does not mean no Umbrella coverage Can be limited by occurrences 5 Million aggregate / 1 million occurrence Will Default for International coverage and some uncover underlying with Deductible

19 Members & Volunteers Standard Liability does NOT extend coverage to 3 rd parties Only employees and hired help Endorse General Liability CG Changes who is covered by your policy

20 Liquor Liability Changes per State!!! Wisconsin No Fault State MN, IL, MI, IN At Fault States Who is held Liable? WI places the burden on the individual Thus insurance claims based on alcohol are declined MN, IL, MI, IN place burden on the business for identifiable over intoxication and service to minors Recap What does Liquor Liability cover Damages resulting from consumption of alcohol on premise or at a sponsored event

21 Insurance Tricks Property Coverage CP Water Exclusion Evil Trick Flood Insurance Separate Policy Federally Mandated, regulated Business Property vs. Building If used for daily operations If the items never leave the location

22 Inland Marine When/What to Schedule Evaluation / Appraisal Mobile Equipment Used for on and off premise Marine Equipment Anything worth $2,000+ Or custom made equipment Docks & Piers Bridges and Man-Made structures Fine Arts

23 Inland Marine Do NOT schedule: On premise tools On premise Maintenance equipment Parts and inventory Motor parts Items for repair Classic or Rare Collector items Buy a collectors policy Fine Arts coverage All are covered Elsewhere better coverage

24 Additional Insureds What it does passing / assuming Liability 3 rd Parties Requested types: Leaseholder Lien holder Mortgagee Landlord Loss Payee Additional Insured Additional Named Insured Financer

25 Contract Guidelines Best Practices Start a Spreadsheet Name, contact info, service provided start date, end date Insurance Certificate Provided File for 7 years Have you agent provide a COI s List annually Remove the contracts you DON T need Limits perceived Liability

26 Workers Compensation What is it? Coverage for workforce while working Common Misconceptions Owners are included Coverage across states Coverage across Countries

27 Work Comp. Longshore and Harbor Workers' Compensation Act (LHWCA) Longshoreman s Endorsement Needed for workers on Navigable Waterways International water, trips, sailing excursions Foreign voluntary workers compensation (FVWC) International Workers Compensation Not to be confused or used to replace LHWCA

28 WC Repercussions Employer is Responsible for excess damages over state maximums or federal requirements If the proper coverage is not enforce Weekly Wage Max - WI - $ IL- $1, MI $ MN - $1, LHWCA - $1, FVWC $1, Still calculated at 66 2/3% of weekly salary

29 Questions Jack J Demski Ansay & Associates Jack.Demski@ansay.com