Roof maintenance should be done each spring and fall and after any major storm that could damage it. Depending on the type of roof you have and your ability to access it, you may want to consider hiring a roof inspector to avoid personal injury.

Roof Styles

As you might expect, different types of styles and materials are popular in various regions because of architectural tastes and weather patterns. Among the most popular styles are:

1. Gable Roofs

Gable roofs, which have a triangular shape, are inexpensive to build, shed water and snow and offer the benefit of extra attic space or vaulted ceilings. However, they are less common in hurricane-prone areas or places with frequent high winds because they are less wind-resistant than other roof shapes.

2. Hip Roofs

Hip roofs slope on four sides and meet to form a ridge at the top, which gives added strength in high wind and allows snow to slide off easily. However, the extra seams on these roofs make water leaks more common.

3. Mansard Roofs

Mansard roofs have four sides with a double-slope on each side that meet to form a low-pitched roof. The advantage of this roof style is that it allows for additional upper level living space or for a future addition, but the low-pitched section doesn’t work well in areas with a lot of snow.

4. Barn or Gambrel Roofs

A barn or gambrel roof is similar to a mansard roof but it has only two sides. These roofs are commonly found on barns, farmhouses, and Georgian-style and Dutch Colonial-style houses. Although this roof style allows for extra space indoors, the shape isn’t ideal for areas with high winds or heavy snow.

5. Flat Roofs

Flat roofs, often seen on commercial buildings, are becoming more popular for houses since people can add a roof deck, a green roof or garden, and solar panels to the roof. However, flat roofs are more likely to leak and are less popular in areas with a lot of rain and snow.

Roof Materials

Roof materials vary by region:

1. Northeast

Asphalt shingles are common in the Northeast because they are lightweight, flexible, resilient and can insulate your house well and support snow.

2. Southeast and Northwest

Metal roofs work well in rainy climates because they aren’t affected by moisture and humidity that can cause mold and they protect your home in a tropical storm or hurricane.

Slate tiles hold up well against the pressure of heavy snowfall and are among the most durable types of roofs.

3. Great Plains

Wood shingles provide insulation and yet allow air to circulate in the attic. They’re natural products and provide a rustic look that complements cottage, bungalow, Craftsmen-style, Tudor and Cape Cod-style homes.

Clay tiles are extremely durable and energy-efficient, provide good air circulation and natural insulation They complement Mission, Mediterranean and Spanish-style architecture and can withstand harsh sun and heavy rain.[clearboth]

Maintaining Your Roof

Although there are some tasks specific to the material of your roof, all homeowners should regularly sweep, blow or wash debris off their roof. Leaves, sticks and trash that accumulates on your roof can cause a variety of problems such as allowing algae to grow, damaging shingles or clogging your gutters. You should also trim tree branches away from your roof to minimize the possibility branches causing damage during a storm and of animals getting into your house.

If you live in an area that gets snow, watch out for too much snow accumulating on your roof. To avoid a roof collapse, buy a roof rake and pull some of the snow off your roof.

Some tasks are specific to your roof type:

Metal Roof

Check for rust and use a wire brush to prime and paint the rusted area. Keeping your gutters clean is particularly important for a metal roof, which needs to dry after rain or snow to avoid corrosion.

Asphalt Roof

Remove debris at least three times per year and repair or replace loose or damaged shingles immediately. Make sure tree branches aren’t scraping the roof, which could cause additional wear and tear on the asphalt shingles. Check to see if any of your shingles are curling or buckling, which could mean they need to be replaced.

Slate Tile Roof

Schedule an annual inspection each spring to look for broken or slipped tiles and repair them.

Wood Roof

Use a garden house to wash away debris and check for moss, mildew and mold. If you find mold, scrape it away and clean with a mix of one quart of bleach, one ounce of detergent and three quarts of warm water.

Clay Tile Roof

Clay tiles can crack or leak, so inspect them annually for leaks or broken tiles. Do an inspection with binoculars and a ladder rather than walking on the roof, which could be dangerous and cause more cracks. Use a power washer with warm water and mild dish detergent to clean the roof, but use low pressure to avoid cracking the tiles.

Remember, if you are uncomfortable doing any of these tasks, call a repair person to help with this.

Checking for Damage and Making Repairs

In addition to checking the roof itself, you should also:

• Investigate the flashing, which is the material that seals your chimney to the roof , and mortar or caulk, which is used to seal roof joints, should be checked for cracks or deterioration that could allow water into your home or allow moss or algae to grow on your roof. If you find signs of deterioration, remove the debris and clean the area before resealing.
• Check for moss or algae when you inspect your roof. If you find some, install (or hire someone to do this) zinc or lead control strips. You can make strips yourself or buy them and tuck them between your shingles to prevent moss and algae growing back.
• Look at your ceiling and attic interior for dark or damp spots or mold and then try to identify where the leak has occurred. Check your attic to see if you can see any daylight filtering through from the roof. A professional roof inspection and repair is far less costly than waiting until the leak gets worse.

Insurance

According to the National Roof Certification and Inspection Association, 39 percent of all homeowner insurance claims are for roof issues. You should check your homeowner’s insurance policy annually to make sure your coverage is up to date and that serious roof damage is covered.

Although a roof repair or replacement required because of storm damage is generally covered, a roof replacement required simply because of the age of your roof and normal wear and tear usually won’t be covered. However, if you have interior damage because of your aging roof, such as water damage from a leaky roof, the costs of repairing that damage may be covered even if you must pay for your own roof replacement.

Roof Value Schedule Option

When you review your homeowner’s insurance policy to check your roof coverage, you can check to see whether you have specific deductibles for wind, hail or hurricane damage, which could vary by state. If you do not have a specific deductible for wind, hail or hurricane damage your all peril policy deductible would apply. Typically roofs are covered under the dwelling portion of your policy.

Another option is the “Roof Value Schedule” endorsement. The RVS endorsement provides an upfront schedule of the percentage of replacement cost that will be covered, which depends on the age and materials of your roof. The benefit of the RVS schedule for consumers is transparency: you’ll know how much you can expect to receive if you have a covered roof loss. The coverage will gradually reduce over time based on the roof’s age and material.

The RVS endorsement applies only to damage caused by windstorm or hail. If you have an RVS endorsement and your roof is damaged by a fire, you’ll have your full repair or replacement costs covered – minus only your deductible.

When you evaluate your homeowner’s insurance, be sure to estimate your potential out-of-pocket costs and your other financial needs to see if an RVS could be helpful to your individual circumstances. Your insurance company can provide a personalized discussion about your roof coverage based on the age and materials of your roof as well as the risk profile for your area.

Hopefully, between routine maintenance and regular inspections, the roof over your head will protect you and your home for its full expected lifespan and beyond. The more you know about your roof and how to care for it, the more likely it is to provide you with lasting protection.

Call us 877-239-0067 or visit our HO Insurance Quote page if you are looking for homeowners insurance in California.

According to Adjuster’s International Disaster Recovery Consulting, compliance with ordinances and laws after a loss can add 50% or more to the cost of the claim*.

Insureds should take a proactive approach to their insurance program and the coverage provided by the program. Learning about important exclusions and limitations after a catastrophe strike will cause the Insured to experience frustration and anxiety. Insureds should always read their policies, and in some states, may be required by law to do so.

Ordinance or Law Exclusion

Most property insurance policies will have an Ordinance or Law exclusion. The exclusion applies to both physical damage and time element coverage.

This exclusion will preclude coverage when an enforcement of any ordinance or law (1) regulates the construction, use, repair or removal of any property, including debris removal; or (2) requires the tearing down of such property, including the cost of removing its debris; or (3) results in increased costs of complying with any ordinance or law.

Coverage begins with the Insuring Agreement

An Insuring Agreement will usually stipulate what causal connection must exist between the covered cause of loss, damage, and ordinance or law in order for coverage to apply.

An Ordinance or Law insuring agreement might include:

• Coverage if the insured building or structure sustains direct physical damage by a covered cause of loss and as a result, the Insured is required to comply with an ordinance or law in force at the time of the loss.
• Coverage, when the direct physical loss to an insured building or structure is caused by both a covered cause of loss and an uncovered cause of loss and the resulting damage, requires the Insured to comply with an ordinance or law in force at the time of the loss.

Ordinance or Law forms traditionally trigger coverage based on ordinances or laws at the time of the loss. But what if an ordinance or law is changed after a loss occurs but before the repair or reconstruction begins? Providing coverage for post-loss ordinances and laws is less common in the marketplace, but it is available.

The Causal Connection – One Size Does Not Fit All!

How an Insurer links the cause of loss to the ordinance or law that was triggered depends on the wording the Insurer drafted in its coverage form. Courts will interpret coverage based on the words in the form.

City of Elmira v. Selective Ins. Co. of N.Y.**

• On March 10, 2006, the City of Elmira (N.Y.) suffered windstorm damage to the southern wall of its historic three-story brick building known as the Armory Building, causing the wall to collapse.
• Engineers determined the collapse of the wall was caused by hidden deterioration of mortar, which weakened the wall and left it unable to withstand gusting winds.
• It was determined such deterioration was not exclusive to the southern wall, and as a result, the building was found to be unsafe. The Code Enforcement Officer found the Armory to be in violation of the New York State Property Maintenance Code. The building was evacuated, and the City was told to either repair or demolish the structure.
• The City had Ordinance or Law Coverage with Selective.

* The coverage did not require that the covered cause of loss (wind) be the reason why the ordinance or law was invoked.

* Instead, the policy’s causal link requirement was that a covered cause of loss occurs and the City incur costs to demolish and clear the site of the undamaged parts of the property as a result of the endorsement of an ordinance or law.

• The court ruled that “if [Selective Insurance Company] wanted to limit its coverage to only those situations where the enforcement of an ordinance or law is caused by a covered cause of loss, it could have easily done so through the language of the contract. It did not.”

This case, and others make it clear – words matter.

Ordinance or Law Coverage

Ordinance or Law coverage consists of several parts. Unless an Insurer automatically includes coverage, each part must be negotiated for and purchased.

I. Coverage A – Undamaged Portion of the Building. When an Ordinance or Law requires an Insured to tear down the undamaged portion of a building, this coverage provides protection for the value of the undamaged portion of the building.

II. Coverage B – Demolition. When an Ordinance or Law requires an Insured to tear down the undamaged portion of a building, this coverage pays for the cost to demolish and haul away debris from the undamaged portion of the building.

III. Coverage C – Increased Costs of Construction. When an Ordinance or Law requires modifications in how a building must be repaired or reconstructed, this coverage provides protection for the increased costs of construction associated with repairing or rebuilding the structure to the code existing at the time of the loss. Coverage usually applies to both the damaged and undamaged portions of the building.

Coverage will not apply until the property is repaired or replaced. In addition, there is often a time limit (e.g. 2 years) to have the repairs or reconstruction finished. Insurers may offer to extend the period required for repairs or reconstruction, but the Insured must request this extension of time in writing.

Orleans Parish School Board v. Lexington Insurance Company, ET AL.**

• When Hurricane Katrina struck the New Orleans area on August 29, 2005, the Orleans Parish School Board (“OPSB”) was managing 126 public schools in the area. The storm significantly damaged the properties.
• The damage to the properties triggered the Ordinance or Law provision in OPSB’s property program, and specifically, the Increased Costs of Construction coverage.
• The policy provision for Increased Costs of Construction included a requirement that code upgrades would need to be performed by August 29, 2007 (2 years after the initial damage) in order for OPSB to be indemnified for the increased costs of construction. Failure to satisfy this condition precedent would result in payment not being made to OPSB for the upgrade costs.
• The provision included wording which stated that the two-year requirement could be increased if Lexington agreed to do so in writing.
• It was determined that OPSB never made a request to increase the period of time to have the upgrades performed on its properties.
• Instead, OPSB argued:

* Lexington had agreed to extend other dates during the claim adjustment process.

* Lexington’s own adjusters did not complete their inspections and estimates until May 2006, and then re-priced their estimates in 2007, yet Lexington wanted the repairs and upgrades completed by 8/29/07.

* OPSB had only received a portion of its insurance funds, which complicated its ability to make timely repairs.

• The court ruled there was no reason for the delay by OPSB to request in writing to Lexington that the two-year period be extended. Lexington was not obligated to remind OPSB of the two-year requirement in the policy.

IV. Increased Period of Restoration (sometimes referred to as Coverage D). When an Ordinance or Law requires the undamaged portion of the building to be demolished and/or results in increased costs of construction, the Business Interruption Period of Restoration increases because the length of time required for the Insured’s business to reopen increases.

Ordinance or Law coverage does not usually provide any coverage when the ordinance or law is triggered due to contamination by pollutants, decontamination costs or the loss in value or costs due to an ordinance or law the Insured was required to comply with before the loss. However, decontamination coverage is available.

Loss Payment

While each Ordinance or Law endorsement may differ, the following is a common approach to determine the amount of loss paid under Ordinance or Law coverage:

I. Coverage A – Lesser of the amount spent at the same location for the same height, floor area, style, quality or limit of insurance. If the Insured does not have replacement cost coverage, then actual cash value for the undamaged portion of the building will apply.

II. Coverage B – Lesser of the amount spent or the limit of insurance.

III. Coverage C – The amount paid depends on where the building is constructed. The valuation method of replacement cost is usually required to have Coverage C and the repairs and/or replacement must be completed before Coverage C costs are reimbursed.

1. If the building is repaired or reconstructed at the same location, then the lesser of:

a. The Increased Cost of Construction that would have been paid at the existing location; OR

b. Limit of Insurance.

2. If the Ordinance or Law requires relocation of the building, then the lesser of:

a. The Increased Cost of Construction at the new location; OR

b. Limit of Insurance.

Payment for costs to comply with ordinances or laws often means complying with the minimum standards required.

These loss payments may be subject to a Proportionate Payment provision.

Allocation of Payment Provision – Multiple Causes of Loss

An Allocation of Payment Provision is not found in all Ordinance or Law coverage forms, and wording will not be standard between forms.

It is not uncommon for physical damage to a building to be caused by both a covered cause of loss and a cause of loss excluded by the policy. When this happens, and there is Ordinance or Law coverage with an Allocation of Payment Provision, the policy will pay a portion of the Ordinance or Law coverage based on the amount of loss applicable to the Covered Cause of Loss and the amount of loss applicable to the excluded cause of loss.

This Allocation of Payment Provision may apply to Coverages A, B, and C.

Example:

A hurricane strikes the Gulf region of the United States.

• The Insured’s building valued at $1,500,000 sustains a physical loss to their building in the amount of $800,000. There were varying degrees of loss over 65% of their building.

* It was determined that wind (covered cause of loss) caused 45% of the damage and flood (excluded cause of loss) caused 55% of the damage.

• The Insured sustains an Increased Cost of Construction loss in the amount of $175,000.
• The direct damage to the property was the result of both a covered cause of loss (wind) and an excluded cause of loss (flood).
• The Insured has an Increased Cost of Construction Limit of $250,000.
• An ordinance or law requires the Insured to repair all of its property to the current codes if the property damage is to more than 55% of the square footage of the building.

Assuming there are no exclusions or limitations to the contrary, what allocation of the Increased Cost of Construction loss will be paid?

$250,000 limit x 45% (covered cause of loss allocation) = $112,500.

Even though the Insured had a limit of $250,000 (enough to pay the $175,000 Increased Cost of Construction loss), only the portion the covered cause of loss bears to the total loss is insured (45%).

Determination of a Limit of Insurance

Coverage A, the undamaged portion of the building, should be equal to the value of the building.

Coverage B, demolition  and debris removal requires the Insured to evaluate potential costs associated with demolishing the undamaged portion of the building and hauling the debris away. The following questions can help determine what those costs could be.

• How will the debris have to be hauled away? By truck? Barge? Ferry?
• How far must the debris be transported?
• What are the projected costs to dispose of the debris?
• What is the projected length of time to accomplish demolition and debris removal?
• What might additional costs be incurred? (e.g. increased wages, equipment rental, cost for disposal at the landfill(s), etc.)
• Are there any local codes that will dictate who must haul away debris? Private company? Army Corps of Engineers?
• Is the building located in a densely populated area? Rural area?
• Are permits required?
• Are additional or special personnel required during demolition? (e.g. police officers)
• Will the demolition require explosives?
• Will debris need to be retrieved from water? (e.g. coastline, lake, bay)
• What additional cost and time for removal and/or remediation of pollutants and contaminants might be required? Note: Unless coverage for this cost is negotiated into the policy, this cost is often excluded. Covered or not covered, it is still a cost to be analyzed.

Coverage C, increased costs of construction, is often said to be the most difficult to calculate. Unfortunately, some Insureds believe that “replacement cost” will pay for increased costs of construction at the time of loss. A replacement cost provision in conjunction with other provisions of the policy must be reviewed to determine if this is true. It likely is not the case.

In order to have an adequate limit for Coverage C, an Insured must do the work. How have ordinances, laws and codes changed since the building was last updated? What would be the cost to get the building up to code? This process requires knowledge of the ordinances and codes that affect an Insured’s building.

Conclusion

Ordinance or Law coverage is readily available in the market. The limits and nuances of coverage available will vary by Insurer and the risk profile of the property requiring the coverage. The coverage wording should be parsed and studied carefully to determine if the coverage offered meets the needs of the Insured. Always remember, these provisions may contain condition precedents that the Insured must oblige in order for coverage to apply. Coverage wording is not standardized between insurers. Therefore, it would be dangerous to assume such a premise.

* Paul O. Dudey CPCU and Donald S. Malecki, Adjusting Today Issue #3009, “Ordinance or Law Coverage – Code for Recovery!”

**Supreme Court, Appellate Division, Third Department, New York, April 2011

***Court of Appeals 4th Circuit, Louisiana, June 2013

[framed_box]ABOUT THE AUTHOR: This article was authored by Jennifer Walker, CPCU, CRM, CIC, CEBS, CIT, GBA, ARM, AIM, AIC, ALCM, associate broker with AmWINS Brokerage of Georgia in Atlanta and member of AmWINS’ national Property practice. This article was originally published by AmWINS Group, Inc., and edited and adopted by Paperless Insurance Services.

Legal Disclaimer: Views expressed here do not constitute legal advice. The information contained herein is for the general guidance of matter only and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language.[/framed_box]

As owner of the new manufacturing facility building project, Thyme Manufacturing Co, Inc. has recently hired the project’s general contractor – Perkins Construction, Inc. In addition to developing the minimum insurance requirements to be used with Perkins Construction and its subcontractors, as Thyme’s newly appointed director of risk management, Jennifer is also responsible for arranging the insurance for the building during the course of its construction. This “course of construction” insurance is commonly known as builder’s risk insurance.

Thyme’s legal counsel has used the American Institute of Architects (AIA) construction contract documents with Perkins Construction – including the 2007 A201 General Conditions of Construction.¹ Of particular interest to Jennifer is Article 11.3 entitled “Property Insurance” – as this section will serve as Jennifer’s starting point to determine Thyme’sminimum builder’s risk insurance requirements.

Because of its market clout Perkins may be able to obtain the builder’s risk insurance for the benefit of Thyme at either a lower cost or with better coverage terms – charging any premium for the insurance back to Thyme. While the option of having the general contractor purchase the builder’s risk is permitted under the AIA A201- 2007, Thyme opts to purchase the builder’s risk coverage itself. Thyme’s owner Justin concludes that Thyme should control the builder’s risk insurance because the new facility represents such a large investment by Thyme – Justin directs Jennifer to purchase builder’s risk insurance directly.

The causes of loss that are required to be purchased are quite broad – “all risk” or an equivalent policy form, specifically listing causes of loss typically understood to be included in a “special” causes of loss property insurance policy – such as theft, vandalism, malicious mischief and wind – as well as listing several causes of loss that are not included in “special” causes of loss forms. Coverage for flood, earthquake and boiler and machinery (equipment breakdown) including testing and startup is usually needed in a builder’s risk policy and is required of Thyme by the AIA A201- 2007 contract with Perkins. As many builder’s risk policies are written on inland marine forms, coverage for some or all of these causes of loss may be automatically included, but with aggregate sublimits.

• Expediting Expenses
• Debris Removal
• Ordinance or Law
• While At Temporary Storage Locations (materials and supplies that will become part of the building)
• While in Transit (materials and supplies that will become part of the building)

Interests Insured

In electing to purchase the builder’s risk insurance in accord with the AIA A201-2007, Thyme has agreed to include coverage in the builder’s risk policy for not only their interest, but also the interests in the project of Perkins and any other contractor, subcontractor or sub-subcontractor. Unless others object, Thyme is authorized to settle a claim with the builder’s risk insurer, but holds the proceeds as a fiduciary for other insured interests. Further, Jennifer notices that Thyme is required to continue the builder’s risk insurance in effect until final payments have been made or Thyme is the only person or organization with an interest in the project – whichever is later. The time period for which Thyme has agreed to maintain the builder’s risk in force will influence the selected policy period – particularly if the project is expected to take over one year. Jennifer’s research has revealed that obtaining a builder’s risk policy from a new insurer on a building that is partially completed is very difficult – if available at all – and thus the strong preference to continue the same builder’s risk policy until the project is finished.

Deductibles and Subrogation

Thyme is considering a larger deductible – $25,000 – to keep premium costs down.  This raises a question – if the loss is caused by the negligence of Perkins or a subcontractor, can Thyme charge the deductible to that responsible party? After a conference with Thyme’s legal counsel, Jennifer learns that Thyme cannot recover such costs because Thyme has agreed to the AIA A201-2007 conditions – which clearly state Thyme is responsible for any loss within the builder’s risk deductible. In fact, Thyme’s legal counsel points out to Jennifer that Thyme has waived its rights against Perkins and any of their subcontractors or sub-subcontractors to the extent that the builder’s risk policy (or other property insurance) provides coverage for the damage. Further, Perkins and its subcontractors and sub-subcontractors also waive any rights they may have to recover from Thyme – again, to the extent the damage caused is covered by insurance. The implications of the waiver clause are clear to Jennifer– the builder’s risk policy she purchases must allow Thyme to waive its rights against all other interests covered by this policy – including damage to the project that is not the work of a subcontractor or sub-subcontractor.⁴

Occupancy or Use

As might be expected, Thyme’s owner, Justin, is very eager to get the project finished and is already asking Perkins when he can move into the new facility and start manufacturing. Apparently this may be a problem – Jennifer learns that a builder’s risk policy may cease providing coverage if Thyme begins to occupy the new facility. However, after some inquiry, she finds that insurers will generally grant permission to occupy. After a discussion between Jennifer and Justin about this matter, Justin agrees to give Jennifer as much notice as possible before he begins occupying the new facility – giving Jennifer time to seek permission from the insurer for occupancy and avoid losing coverage under the builder’s risk policy.

Loss of Use
An area that is not at all clear to Jennifer is the section of the AIA A201-2007 contract that is entitled “Loss of Use Insurance.” While Jennifer understands that Thyme has waived all of its rights of action against Perkins for loss of use of the facility due to “fire or other hazards, however caused” and also knows the purchase of this insurance is at the option of Thyme, she does not know what is meant by “loss of use insurance.”

Delay in Completion/Soft Costs
If an insured cause of loss damages Thyme’s facility and that damage results in a delay in the project completion, Thyme could suffer two types of consequential loss:

1. Loss of Income. Thyme is building the new facility as it anticipates expanding its manufacturing to develop increased revenues of 30% in the first year alone. If a fire were to delay the facility’s opening by one year, then Thyme would suffer a net income loss resulting from its failure to realize the 30% revenue increase. Coverage may be arranged on the builder’s risk policy for Business Income coverage that would respond to the loss of net income that would have been earned for the period of the delay.
2. Soft Costs. In addition to being exposed to the loss of income that may result from a delay in the completion of its new manufacturing facility, Thyme is also exposed toadditional costs that are unique to a construction project. For example, the delay in completion may require Thyme to pay interest for a longer period on its construction loan – in lieu of its planned permanent financing with lower interest costs. In fact, the permanent financing may be lost entirely, requiring additional accounting and legal costs to renegotiate the permanent financing. Project administration costs, such as security, may continue beyond what was budgeted. Design fees may be greater because of the delay. The additional insurance costs incurred by Thyme during the period of construction (including the incremental additional costs of the builder’s risk insurance) may continue longer than expected because of the delay. Depending on the type of project, other soft costs may be incurred, including advertising or marketing expenses that must again be incurred if the project was to be sold; similarly, additional legal or accounting costs may be incurred to renegotiate leases if the project was to be leased to others. Insurance for soft costs usually specifically lists and describes each additional expense covered as soft costs – it is important to closely examine the soft cost coverage and compare what is offered to what additional costs an organization similar such Thyme may incur if the project is delayed due to damage caused by an insured cause of loss.

Conclusion
Jennifer has a strong understanding of the general contours of Thyme’s builder’s risk insurance needs, including its obligations under its construction contract with Perkins. However, she has a great deal of work left to do – starting with choosing a building limit, including sub-limits for certain coverages and coverage extensions, as well as whether and how much loss of income and soft cost coverage (including the categories of soft costs coverage) to purchase. In addition, upon review of builder’s risk proposals, it is important for Jennifer to review the policy forms being offered to make sure she has the coverage she wants or needs, including but not limited to the causes of loss, whether all interests are insured and whether Thyme’s waiver of it rights against the others is allowed in the policy. Finally, Jennifer needs to explore limitations in the builder’s risk policy as respects occupancy by Thyme – will the insurer permit occupancy – if so, when and under what conditions.

[framed_box]
About the Author – Craig F. Stanovich, CPCU, CIC, CRM, AU is co-founder and principal of Austin & Stanovich Risk Managers, LLC, a risk management and insurance advisory consulting firm specializing in all aspects of commercial insurance and risk management, providing risk management and insurance solutions, not insurance sales. Services include fee based risk management, expert witness and litigation support and technical/educational support to insurance companies, agents and brokers. Email at cstanovich@austinstanovich.com. Website: www.austinstanovich.com.

This article was originally published by AmWINS Group, Inc., a leading wholesale distributor of specialty insurance products and services. AmWINS publishes The Edge, a monthly email with informative and timely articles for P&C and benefits insurance agents and brokers. To sign up to receive The Edge or for more information about AmWINS, visit amwins.com.
Legal Disclaimer: Views expressed here do not constitute legal advice. The information contained herein is for general guidance of matter only and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language.[/framed_box]

Commercial cooking operations are defined as kitchens that have cooking equipment that produce grease and grease laden vapors. This includes flat grills, char broilers and deep fat fryers. The typical residential range (electric or gas) would not be considered a grease producing appliance. Other equipment, such as ovens, microwaves and steam kettles also fall into the non-grease producing appliance category. The following is information regarding two of the most common types of equipment that produce grease and/or grease laden vapors.

Deep Fat Fryers

Deep fat fryers are a major cause of kitchen fires. Oil can splash and easily come into contact with an open flame from an adjacent piece of cooking equipment, such as a gas-fired range top. A 18-inch clearance must be maintained between the deep fat fryer and the open flame cooking equipment. If a 18-inch clearance is not possible, a vertical steel barrier extending 12 inches above the top of the deep fat fryer or open flame appliance(s) can be used as an alternative means of protection.

The normal temperature range for food service frying is 325 to 375 degrees Fahrenheit. As the oil temperature increases, so does the risk of an accidental grease fire. All deep fat fryers should be equipped with a high temperature limiting device, which will shut off the fuel or energy in the event the cooking oil exceeds a temperature of 475 degrees Fahrenheit

Flat Grills/Griddles

Flat grills and griddles are typically used for frying hamburgers and bacon. When used for this type of cooking, grease and grease laden vapors will be produced. To adequately control the fire hazard associated with these types of cooking operations, two fire protection components must be installed: a hood and ventilation system and an automatic extinguishing system.

Hood and Ventilation System

A kitchen hood and ventilation system will include an exhaust hood or canopy, ductwork, fan system, and a means of providing adequate make-up air. This system will effectively remove the heat, grease and grease laden vapors from the cooking area.

Installation

• The hood and ventilation system should be professionally installed according to National Fire Protection Association Standard 96. (NFPA 96 Standard for Ventilation Control and Fire Protection of Commercial Cooking Operations.)
• Local fire officials also should be consulted, as additional requirements under county and/or municipal codes could apply.
• The hood must be equipped with the appropriate grease removal filters. Only baffle style filters comply with NFPA 96 and should be used in cooking operations that produce a moderate to heavy amount of grease. Mesh filters are not appropriate for commercial cooking operations and do not comply with NFPA 96. Filters should be cleaned regularly to prevent the build-up of grease.
• Lighting units should be equipped with tight fitting protective globe lights with steel enclosures that are mounted on the outer surface of the hood. All electrical equipment should be installed in accordance with NFPA 70 National Electric Code by a licensed electrician.

Maintenance

• Hoods, grease-removal devices, fans, ducts and other equipment should be serviced by a qualified contractor at intervals necessary to prevent the accumulation of grease. Frequency of cleaning will depend upon the amount of grease observed during an inspection. A six month interval is standard, but unusually heavy grease accumulation may require more frequent cleaning.
• A written cleaning schedule should be established indicating the methods of cleaning and the time intervals.
• Following the inspection or cleaning, a label indicating the date cleaned and the name of the servicing company should be prominently displayed. It is recommended that this label be attached to the exterior of the hood in a visible location.

Automatic Extinguishing System

• All cooking equipment that produces grease or grease-laden vapors should be equipped with an approved automatic extinguishing system.
• The automatic extinguishing system should meet the Underwriters Laboratory (UL) 300 standard. UL 300 went into effect in 1994 as the result of the high temperature oils used in cooking today. Dry-chemical systems do not adequately extinguish grease fires associated with using these high temperature cooking oils.
• The automatic extinguishing system should be inspected and serviced every six months only a qualified contractor.
• A minimum of one manual activator should be installed. The activator is to be used if a fire occurs and the automatic extinguishing system fails to activate.
• The manual activator must be accessible in the event of a fire and located along a route of egress from the kitchen area.
• Kitchen staff must be properly trained on the proper operation of the manual activator.
• The automatic extinguishing system must be inter-connected to an automatic fuel/power shut off that cuts all fuel/power from the cooking equipment immediately after the automatic extinguishing system is activated.
• Prohibit the operation of cooking equipment when the extinguishing system or exhaust system is non-operational or otherwise impaired.

Fire Extinguishers

• Wet chemical fire extinguishers are the best portable extinguisher available for kitchen operations. K-rated extinguishers are recommended for commercial kitchens. They operate in the same manner as a UL300 pre-engineered restaurant fire extinguishing system. The agent discharges as a fine mist, which helps prevent grease splash and fire re-flash, while cooling the appliance.
• The fire extinguisher should be located no more than 30 feet from the cooking area.
• Fire extinguishers should be maintained at regular intervals; at a minimum of once per year, or when specifically indicated by a manufacturers recommendations. Maintenance should be conducted only by an approved/licensed contractor. Servicing is intended to give maximum assurance that an extinguisher will operate effectively and safely.

General Housekeeping

• The kitchen’s floors and walls around cooking appliances need to be periodically cleaned to prevent the accumulation of grease. Frequency of cleaning will depend upon the frequency and type of cooking being conducted; however a minimum of once a week is recommended.
• Floor and wall coverings surrounding the cooking equipment need to be of an appropriate material that will prevent grease saturation and be easy to clean and maintain. Examples of appropriate material include ceramic tile on floors or stainless steel on walls.

In the end, whether you operate a commercial grade kitchen or rent one for your small business cooking operations (such as bakery), note that each and every insurance company is going to thoroughly evaluate the safety features of the kitchen and won’t provide insurance coverage if the following is not warranted:

• Food products must be clearly labeled as to their ingredients;
• Quality Control Plan in place;
• Recommended: “Sell by Date” on Products;
• Recommended: Serial Number for Tracking;
• Recommended: Formal Complaint Investigation
• Automatic Fixed Extinguishing system covering all cooking surfaces
• High Temperature automatic Shut Off
• 18″ Clearance between cooking surface and combustible surface
• Dry chemical fire extinguishers in all cooking areas or an automatic fixed extinguishing system regularly serviced by outside contractors
• Hood/ducts regularly serviced by outside contractors
• Required: Vent grease extraction filters daily cleaned by employees
• No use of dry bulk storage containers/bins or silos for storage of flour, cornstarch, rice, grains, sugar or other powdered products
• Required: Contingencies in place that would help ensure business operations will be maintained in the event of a loss or catastrophe, such as
  • Alternate manufacturing/processing facilities available if needed
  • Machinery and spare parts stocked to expedite repairs
  • Back up generators in place and tested monthly
  • 3rd party manufacturing

All of the above is subject to inspection and compliance with recommendations.

If you need to get an insurance coverage for your use of commercial grade kitchen, such as bakery, catering, food manufacturing, etc. submit a short application online at https://www.paperless-insurance.com/get-a-quote-now/ or get speak to a licensed agent at 877-239-0067.

It is a common misconception that slip and fall injuries “just happen” and that there is little that can be done to prevent them. Years of experience show that proper slip, trip and fall prevention can help in reducing the number of injuries and in reducing loss costs.

Some major hazards associated with slip, trip and fall injuries include:

• Slippery surfaces
• Holes or broken surfaces
• Uneven walking surfaces
• Poorly marked and/or poorly lit walkway transitions
• Poor drainage
• Spills
• Slippery conditions due to mud, ice or water during inclement weather

Incorporating best practices and a prevention plan can help reduce the risk of a slip, trip or fall at your business or on your premises.

• Develop and implement a slip, trip and fall risk control policy.
• Conduct periodic walkthrough surveys of your premises to help ensure your property and buildings are kept in safe condition.
• Maintain your property and buildings to reduce potential slip, trip and fall hazards. All flooring surfaces should be well maintained at all times.
• Practice good housekeeping:
  • Use slip-resistant floor treatments
  • Apply floor treatments to manufacturer’s instructions
  • Use “wet floor” signs to warn of known hazards
  • Mop during times of low traffic
  • Document maintenance procedures
• Ensure materials used to prevent slips, such as mats, are well maintained.
• Conduct thorough investigations when a slip, trip or fall accident and/or injury occurs.

The holidays usually bring several things to a small business – more foot traffic, celebratory decorations and additional staff to help with boosted sales.  However, with added customers and distractions, slips and trips are never far away. So when getting into the holiday spirit, you should make safety a priority.

Training employees on safety practices key to reducing injuries

New or seasonal hires often bring greater risk when it comes to frequency of injuries. In fact, they are five-times more likely to experience an injury in their first month of employment which can be significant enough to require them to miss work, leaving you short-handed at a time when you need all hands on deck*.

Therefore, training employees in workplace safety from day one is key. Helpful tips to keep in mind when safeguarding your store include:

• Make sure new hires are familiar with their surroundings and responsibilities. While they may have a lot of industry experience, your unique facility is still unfamiliar territory.
• Train employees in proper lifting techniques and ladder safety.
• Ensure that your candles are battery operated. Decorations also go hand-in-hand with potential accidents and injuries. According to the National Fire Protection Association, the top 4 highest days of the year for candle fires happen between Christmas Day and New Year’s Eve. So in a busy retail environment, or even in the office, faux candles may be best.
• Choose your decorations wisely. Many of them are combustible, or will burn. Things like paper, decorated trees and wreaths will increase the fire load in a small business. Keep them away from heat or other ignition sources.
• Use extension cords properly, and be sure you aren’t ”daisy-chaining” them in order to extend a decoration or a theme to an area where the plug cannot reach. Aside from a potential trip and fall incident, this is also a fire hazard.
• Choose smart locations for any additional holiday displays and products. Be sure you are not covering up emergency exit signs, over-crowding aisle ways—anything that would make it difficult to get out in an emergency situation.
• Be sure decorations are secured properly and traffic can navigate easily around them, especially when it comes to big displays.
• Maintain appropriate inventory levels. Over-stocking shelves could lead to items toppling onto staff or customers.
• As a general rule, always take the time to scan your facility to make sure it’s safe for customers and employees. It should be a part of your daily process to open and/or close up shop.

There are a number of factors that must be considered when working with ladders, and following key practices of ladder safety can help prevent a potential injury.

• Inspect a ladder for cracks, loose rungs, slivers and sharp edges prior to every use. If the ladder appears to be in poor condition, do not use it.
• Use caution while carrying or moving ladders.
• Practice team lifting if the ladder is too long or heavy for one person to move.
• Ladders should be carried horizontally rather than vertically, unless it is lightweight or under eight feet tall.
• Ensure ladders are set on firm ground and against a solid support during use.
• When using a non-self-supporting ladder, which must lean against a wall or other support, be sure to position it at such an angle that the horizontal distance from the top support to the foot of the ladder is about 1/4 the working length of the ladder.
• Always completely open the step ladder and make certain it is stable before using it.
• Make note of the maximum intended load and manufacturer’s rated capacity when selecting and using ladders.
• Do not stand higher than the second step from the top.
• Never stand or sit on the top step.
• Do not use metal ladders near electrical exposures.

To get a quote for abuse and molestations go to: https://www.paperless-insurance.com/abuse-and-molestation-insurance-quote-request/

Today dental lab owners and lab technicians can be sued. But it is never late to give your business insurance a check-up and determine the type of liability insurance you need to have and then to make sure you have it.

The good place to begin with is to check the NADL (National Association of Dental Laboratories) or your state dental laboratory association. If you are a member of NADL than you can talk to their membership service rep and review what kind of coverage you should look for and what questions you should ask, especially if you opt to go with an independent agent that might not be familiar with insurance needs specific to the lab industry. The most important thing is to proceed and make sure you have the coverage you need.

Tough times are over, but even with the bad economy, you don’t have to have a deep pockets to afford the cost of liability insurance. The policy premiums can be as low as $425 a year, which is well worth when a lawsuit comes up.

The most suggested insurance for dental lab is business liability (3-rd party injury and property damage coverage), business personal property (coverage for your tools, equipment, stock and similar property, including property in transit), workers compensation (coverage for employees’ injuries and deceases), commercial auto (if you offer pick-up and delivery services), and last but not least professional liability / errors & omissions insurance.

First, let’s go with what your state may require: to carry workers’ compensation based on the number of employees or size of payrolls. As licensed insurance professionals we can explain your responsibility to your employees in this regard.

If you have financed your building, equipment or may be paying rent for a space in a building insurance requirements are most likely listed in your contract.  We recommend to review how your current insurance policy would respond to claims related to tenant’s betterments and improvements.

Whereas, many dental labs buy insurance only to satisfy the requirements and don’t think about other possibilities, let’s review some possible situations that could cause great financial loss or cause the lab to cease operations: theft, fire on your premises or accident at vendor’s, loss of key employees,  lawsuit by an employee or customer. Another major exposure is Professional Liability. Many insurance carriers offer an endorsement, with the following coverage explained: The carrier will pay on behalf of the insured dental lab those sums that the lab becomes legally obligated to pay as damages because of “Bodily Injury” or “Property Damage” caused by an “occurrence “arising out of the rendering or failure to render professional services as a “dental laboratory”. Dental lab professional liability insurance is termed “errors and omissions” liability, when liability is confined to acts of negligence. Beware: most insurance policies exclude professional liability coverage. And finally, a new trend and all-increasing exposure of data breach.

Product liability insurance (also called Products/Completed Operations) will provide coverage for injuries and property damages resulting from manufacturing flaws, design defects, defective warnings or instructions.

Myths and believes.

Don’t think that if you have an insurance policy so it must be covered. Give your business insurance a check-up now! Talk to a licensed insurance professional to determine your current coverage needs and demands. Don’t overpay for insurance. Insurance markets respond to changes very quickly: something that was more expensive a few years ago, could have become much more affordable now.

In the end, the best risk management advise we can give to a dental lab is to review their operations and risks and work on implementing and adhering to a safe work environment and a safe product to the market place.

WE UNDERSTAND YOUR GENERAL LIABILITY HAZARDS

• Training modules for unique risks such as flagging/traffic control
• Risk control specialists to assist in analyzing digging sites for pipe-laying hazards
• Coverage available for failure-to-supply services and sewer back-up liability
• Utilization of immunities and tort caps where applicable
• Coverage for members of boards, commissions and sewer authorities

WE HAVE AN INDUSTRY-LEADING WORKERS COMPENSATION PROGRAM

• Co-located medical and claims professionals promptly handle, thoroughly investigate and fairly resolve claims, with a focus on return-to-work
• Discounts and savings through carrier’s preferred medical provider network

WE KNOW YOUR MACHINES

• Specialized equipment breakdown  coverage and certified boiler and machinery inspections and consultations through carrier’s Boiler & Machinery

WE PROVIDE SERVICES FOR EMPLOYMENT PRACTICES

• Complimentary EPL hotline provides access to EPL attorneys* to answer your questions
• Discounts for employee training to help protect against “failure to train” exposures

WE UNDERSTAND EMOTIONS ASSOCIATED WITH SEWER BACKUP

• Our dedicated Sewer Backup Claim Unit  understands the importance of balancing residents’ emotional reactions to water backup events with prompt claim handling
• Specialists work with sewer backup adjusters for valuation of residents’ personal items, antiques, etc.

WE OFFER CYBER LIABILITY PROTECTION

• Coverage to protect against cyber and ID fraud for entities that store data electronically

Our carriers offer water and sewer districts a variety of tools and services – from workers compensation support to bill paying options – to meet your unique needs. Our underwriting, claims and risk control teams are staffed with knowledgeable professionals dedicated solely to serving public entities. Below is a quick rundown of what  we can provide for water and sewer districts:

Underwriting

Underwriters stay abreast of public affairs and evolving legal and social issues in your area. They’re devoted to creating balanced, effective insurance solutions that address your unique needs.
They can provide:
• Broad coverage forms tailored for publicly-owned utilities (such as underground piping and pumps)
• Broadened pollution provision to address chlorine/sodium hypochlorite in water or sewage purification processes as well as sewer backup incidents
• Failure-to-supply limits applicable for water, gas or electric operations

Claim

Our claim professionals are dedicated solely to handling public entity claims. They understand state-specific issues and have extensive knowledge of the immunities and special defenses afforded to public entities. Other claim highlights include:
• 24/7 claim reporting online or our toll-free number
• Dedicated claim professionals assigned to manage and coordinate your claim
• Quick service and local expertise from one of a number of claim offices situated nationwide
• State-of-the-art workers compensation claims technology
• Access to unique workers compensation web site dedicated to injured employees

Risk Control

The risk control team can help strengthen your risk management program with a number of special tools and services:

• Online products and services
–– Assistance with continuity of operations planning
–– Training modules for unique risks like flagging/traffic control
–– Property, Preservation, a one-stop shop for valuable program guides, checklists and technical bulletins
–– Safety self assessments through Virtual Risk Manager
• Certified Boiler & Machinery inspections and consultations
• Risk control specialists to assist in analyzing digging sites for pipe-laying hazards
• Nationwide network of fire protection specialists with experience serving public entities
• Workers compensation specialists available for post-injury management
• Local risk control specialists
• Robust website with broad array of information to help address challenges specific to water and sewer districts

Bill Pay

We offer direct bill and agency bill plans on an annual, semi-annual or quarterly basis in order to fit your cash flow needs.

Backed by Financial Strength
And, as always, you’re backed by the financial strength. Our carriers are a component of the Dow Jones Industrial Average and have received consistently high ratings for financial strength and claims paying ability from independent ratings services, including A.M. Best, Moody’s and Standard and Poor’s.

For more information, call Diana Motseniat at 877-239-0067 ext. 111.