Happy Thanksgiving!
Great for anyone hosting Thanksgiving – Here are some tips to avoid common Thanksgiving disasters.

Thanksgiving is one of America’s favorite holidays. Every year, millions of people across the nation take to the roads, rails, and skies to make it home in time for this special day. And yet, for many, Thanksgiving Day often ends in tears—or a visit from the fire department.

Your Thanksgiving doesn’t have to be ruined by brawling relatives or kitchen emergencies. Here are some tips to help you avoid common Thanksgiving disasters.

Cooking Calamities

Imagine that it’s Thanksgiving and everyone is gathered around your table, hungry and waiting for the main course…which is still in the oven, partly frozen. The only situation more awkward and heartbreaking for hosts is the reverse of this scenario: You proudly remove the turkey from the oven, ready to serve it, only to find it’s been transformed into a charred lump.

Here are a few tips to help you prevent such setbacks and if they do occur, to gracefully deal with them.

• Give yourself extra time to defrost anything frozen.
• Cook or bake everything you can well in advance of the Thanksgiving meal, especially bread and pies.
• Buy or make simple appetizers ahead of time in case the meal takes longer than anticipated to prepare. These don’t have to be complicated, just tasty.
• Measure the inside of your oven to ensure that your turkey will fit. If you need to feed a big group, remember that there’s no law stating that you have to cook the turkey whole. Buy a large assortment of turkey breasts, drumsticks and so on, or cook a smaller bird and make up for it with more side dishes.

Food Poisoning

Food poisoning is one of the worst imaginable outcomes of any group meal. No one wants to cook what they think is a beautiful feast, only to find out that it made their guests sick.

To protect yourself and your family from food-borne illnesses, follow these precautions:

• Wash hands and surfaces well, and follow the basic rules of food safety.
• If you’re not an expert in the kitchen, don’t feel you have to go all out with complex, fancy dishes or exotic ingredients. Everyone appreciates a simple, familiar meal, and no one will expect you to produce a turducken.
• Read and follow recipes carefully. If the cooking time or measurements look odd to you, check other similar recipes to make sure you’re not cooking unsafely because of a typo.
• Food allergies can be as bad as food poisoning, if not worse. Keep track of every ingredient you use so that you can provide correct, and maybe life-saving, information if guests ask.

Malfunctioning Appliances

Have you ever had your oven suddenly die on you with your pie half-baked, or your freezer stop freezing just in time to melt the ice cream you were going to serve with that pie?

Though you can’t always ensure that your appliances will behave, you can take preventative steps to stave off last-minute menu catastrophes.

• If an appliance has been acting up, get a professional to inspect it. If need be, get it repaired or replaced before the holiday.
• When planning your menu, don’t neglect the delicious (and healthy!) dishes that don’t need to be cooked. Various salads, fruit plates and dips can satisfy your guests while you work on fixing that broken appliance.
• Keep alternate menu plans or cooking ideas in the back of your mind, just in case. You might be surprised at how well you can cook in a toaster oven.

If all else fails, keep calm and try to remember what Thanksgiving is actually all about: spending time with those you love and reflecting on the things in life that mean the most to you. Besides, there’s nothing wrong with eating pizza on the fourth Thursday in November.

Exploding Deep Fryers

You might have seen videos of Thanksgiving deep-frying gone wrong. It may be amusing when it’s on YouTube, but it’s definitely not funny when it’s your own meal exploding, potentially damaging your property.

If you choose to cook your turkey in a deep fryer, here’s how to go about it:

• Before you place your turkey anywhere near your fryer, read up on the dangers specific to this cooking method (e.g., “deep fryers can easily tip over”), the precautions you should take and the tips for how to fry safely.
• Follow a proven recipe. The National Turkey Federation provides several, along with additional safety tips.

Fire Preparedness and Safety

A fire is one of the worst catastrophes that can occur when your family and friends are gathered together in your home, and it can happen easily—a stove-top grease fire or a blaze caused by a curtain or decoration coming in contact with fireplace or candle flames, for example.

Holiday cooking fire safety
Fortunately, house fires can be prevented, as long as you follow safety rules and make sure any fire is immediately and appropriately-tended.

• Always pay attention to what’s happening in the kitchen. According to the American Red Cross, almost 90 percent of kitchen fires are caused by unattended cooking.
• Know how to douse a grease fire—don’t make the understandable but dangerous mistake of using water.
• Have working smoke detectors and fire extinguishers. They can mean the difference between a minor incident and a tragedy.
• Keep decorations far away from fireplaces, heaters, and candles.

Shattered Dishes

Your Thanksgiving has gone smoothly so far, and you’re finally cleaning up and putting everything away when a guest accidentally drops your great-grandmother’s one-of-a-kind serving dish.

If this thought horrifies you, here’s how to avoid it and similar incidents:

• When in doubt, save pieces of great value—financial or sentimental—for display purposes and serve food on platters you wouldn’t be devastated to see in pieces on the floor.
• If your group is particularly boisterous (or just clumsy) consider using disposable cups and plates. These days, you can find attractive and seasonally appropriate paper plates, as well as plastic cups and even serving dishes at party supply stores.
• Assign specific cooking, serving- and washing-related tasks to responsible individuals. It’s nice when everyone wants to help, but giving certain chores to certain people will cut down on chaos in the kitchen.

Family Fights

This is one of the most dreaded Thanksgiving scenarios. Two siblings on opposite sides of a political issue or a parent who disagrees with their child’s choice of job or tattoo get into a fight that makes everyone in the room either angry, uncomfortable or miserable.

Thanksgiving Day fights are such a common occurrence that advice columnists weigh in on the dilemma every year. Here are some ways to prevent these family feuds:

• Limit the size of your gathering. Dear Amy advises hosts to ban the worst offenders. That might cause others close to them to stay away too, but it’s your home and you and your other guests should feel comfortable in it.
• Be assertive and set boundaries. Dear Prudence advises two letter-writers to plan what they’ll say or do around pushy family members before they have the chance to push too far.
• Assign understanding family members to take on certain roles, like distracting squabbling children or leading your uncle into talking about his high school memories instead of his views on politics.
• Separate relatives who are likely to quarrel during dinner by carefully arranging your seating chart in advance. Pretty place cards on a beautifully-set table can hide the fact that it’s all a secret strategy to keep the peace.
• If there’s no way to avoid spending the day with certain offensive or depressing people, try to regularly remind yourself that their behavior is not about you and that you don’t have to take the bait.

Injuries

No one wants a guest getting hurt in their home, but accidents do happen. In the crowded and festive atmosphere of Thanksgiving, it’s easy for a cook to get burned or cut in the kitchen, or for a child—or even an adult—to trip and fall down the stairs.

Before you host a holiday meal, take the time to prepare your home to prevent injuries; and have emergency supplies on hand just in case.

• Child-proof your house if kids will be coming over.
• Check the condition of the lesser-used features of your home, like your tire swing or back deck, before inviting people—who may not realize they haven’t actually been sat or stepped on since the Carter Administration—to use them.
• Have basic first-aid supplies on hand, so that no one has to rush out in search of bandages on a night when many stores are closed.

Although it can be difficult, especially if you encounter problems on the day, it always helps to remember the obvious: Thanksgiving is supposed to be about giving thanks. As you get ready for the holiday, take the time to prepare for the worst but don’t forget to appreciate the best aspects of family, friends, food, and fall.

1. Harassment and Bullying Spark More Lawsuits

All school personnel should receive misconduct alertness training so they can spot the signs of abuse and intervene early.
Anonymous reporting tools can also help drive earlier intervention.

2. Title IX Expansion Increases Due Process Liability.
Title IX is a law that was meant to bar discrimination based on sex in educational program activities and athletics that received Federal financial assistance.

Higher ed institutions should have a Title IX adviser on staff who understands the law and can advise schools on the best course of action to take when a complaint is filed.

3. Active Shooter Defense Done Wrong May Increase the Risk of Injury

Active shooter training is a must for any school, and insurers often can provide access to these resources.

4. Frozen Pipe Bursts May Cause Damage in the Millions

Schools should consider investing in smart sensors that detect moisture and can alert facility managers to a leak. Simple leak sensors cost as little as $50, while water flow detection and shut-off systems top out around $2,000.

5. Employment Practices Lawsuits

Schools should take advantage of their insurer’s legal resources. Many insurance carriers offer a hotline through which school administrators can receive free legal consultation. Understanding their obligations to employees and the potential repercussions of layoffs can help administrators better cover their bases if such an action is necessary.

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

UPDATE 08/30/2022: As of today we offer abuse and molestation coverage to all professions and services. Follow the link and answer only 2 questions to receive your accurate premium indication: Get Instant Abuse Insurance Indication Now

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]

But in a work setting, it means much more. Housekeeping is crucial to safe workplaces. It can help prevent injuries and improve productivity and morale, as well as make a good first impression on visitor. It also can help an employer avoid potential fines for non-compliance.

The practice extends from traditional offices to industrial workplaces, including factories, warehouses and manufacturing plants that present special challenges such as hazardous materials, combustible dust and other flammables. Experts agree that all workplace safety programs should incorporate housekeeping, and every worker should play a part. In addition, housekeeping should have management’s commitment so workers realize its importance. Here are 11 tips for effective workplace housekeeping.

1. Prevent slips, trips and falls
Slips, trips and falls were the second leading cause of nonfatal occupational injuries or illnesses involving days away from work in 2013, according to data from the Bureau of Labor Statistics.

2. Eliminate fire hazards

Employees are responsible for keeping unnecessary combustible materials from accumulating in the work area. Combustible waste should be “stored in covered metal receptacles and disposed of daily,” according to OSHA’s Hazardous Materials Standard (1910.106).

3. Control dust
Dust accumulation of more than 1/32 of an inch – or 0.8 millimeters – covering at least 5 percent of a room’s surface poses a significant explosion hazard. This dust accumulation is about as thick as a dime or paper clip.

4. Avoid tracking materials
Work-area mats – which can be cloth or sticky-topped – should be kept clean and maintained. This helps prevent the spread of hazardous materials to other work areas or home, Gray said. Check all mats to ensure they are not tripping hazards.

5. Prevent falling objects
Protections such as a toe board, toe rail or net can help prevent objects from falling and hitting workers or equipment.

6. Clear clutter
A cluttered workplace can lead to ergonomics issues and possible injuries because workers have less space to move, Gray said.

8. Use and inspect personal protective equipment and tools
Workers’ compensation cases stemming from employees who did not wear PPE when cleaning up spills or other material, such as broken glass or plywood, and then suffered cuts or splinters.

9. Determine frequency
All workers should participate in housekeeping, especially in terms of keeping their own work areas tidy, reporting safety hazards and cleaning up spills, if possible.

10. Create written rules
Experts agree that housekeeping policies should be put in writing. That way, Norton said, they are formal and defined. Written protocols could specify which cleaners, tools and methods should be used.

11. Think long-term
Housekeeping should be more than a one-time initiative – it should continue through monitoring and auditing. Keep records, maintain a regular walk-through inspection schedule, report hazards and train employees to help sustain housekeeping. Set goals and expectations, and base auditing on those goals.

Get your sidewalk neat before they trick-or-treat

Make your yard spooky, not dangerous – Be sure to clean up before candy-fueled children charge through your yard. Remove dead branches, sticks and acorns, rake up the leaves, fill in holes and trim your hedges to prevent any injuries.

A well-lit driveway can still be scary – There’s nothing scarier for a homeowner than seeing a masked trick-or-treater blindly stagger up your dark driveway. Help them out by turning on all of your exterior lights and lining your driveway and sidewalk with lights or luminaries. Never use any open flames, which could lead to disaster and injury. Instead, use LED tea lights or other decorative Halloween lights to prevent a fire. These should also be used in jack-o-lanterns in lieu of candles.

Keep your beasts in the dungeon – It doesn’t matter if you’ve got a vampire bat or a kitten as a pet, a constantly ringing doorbell can be too much excitement for your animal. To keep your pet from sprinting out of your open front door and possibly injuring someone, keep them confined to another room in the house.

No speed demons allowed – If you are driving through a residential area, drive as slow as possible. Avoid passing stopped vehicles in case they are dropping off children. You should also be especially cautious when entering and exiting driveways.

The horrors of distraction – On Halloween, neighborhoods are filled with children unexpectedly darting out into the street. Put away your cell phone and don’t look away from the road to ensure you don’t injure any trick-or-treaters. You should also never drive while wearing a mask.

Turn signals aren’t terrifying – Communicate your intentions to pedestrians and other drivers by using your turn signals. If you’re dropping off trick-or-treaters, pull over and use your hazard lights.

Drinking on Halloween can be a nightmare – It doesn’t matter if you’re driving or walking, drinking on Halloween can be a deadly choice. The combination of alcohol and the increased number of people walking in the streets at night makes Halloween the most dangerous night of the year for pedestrians.

But the majority of real estate accounts placed in the E&S marketplace are multi-location apartment schedules. In recent years, many casualty markets have struggled with being profitable on these risks, and some have stopped underwriting this class entirely. What makes this class so difficult for carriers to be profitable, and why have so many markets either exited the space or tightened their guidelines?

Obviously, profitability is tied to thin rates and/or overly generous claims settling, but there are several other factors when it comes to this class:

1. Unique claims = general liability? Not always.

One factor is that there are so many more unique claims which ultimately get tagged to the general liability (GL) carrier. Just about anything that goes wrong – other than traditional property losses such as fire, wind, flood, etc. – is considered a GL claim. While it used to be that the owner or manager had to be negligent in order for a GL claim to be paid, that’s hardly the case anymore. Carriers have traditionally been the most concerned with “typical” GL claims including slip-and-falls, violent attacks, and sexual assaults; they now have to also deal with unique, obscure claims for which a GL carrier is ultimately held liable. This diminishes any chance of the account being profitable.

Here are some examples of fairly obscure claims, both of which settled for well over $1,000,000:

a. At a property for elderly tenants, a woman wanted to take a bath. She drew the bathwater, didn’t realize how hot the water was until she got into the tub, and couldn’t get out fast enough before she was scalded.

b. A motorcyclist was trying to enter a gated apartment community but didn’t know the appropriate gate code. The motorcyclist was closely following the car in front whose driver had the access code. Unfortunately for the motorcyclist, once the car passed through the entrance, the gate “arm” closed abruptly and knocked him off his motorcycle, causing injury. The claim eventually closed for nearly $1,000,000.

Again, these “once in a lifetime” claims are particularly present in the multi-family sector, with many of these claims eventually closing with substantial defense and indemnity payments. When reviewing five years of loss runs, it is not uncommon to see at least one of these type of claims (paid or reserved) for between $500,000 to $1,000,000, as well as one or more of the “traditional” claims mentioned above, on the even very best habitational property risks.

2. It’s time-consuming to underwrite large apartment schedules.

When compared to other risks, it takes an exorbitant amount of time to properly underwrite a large schedule of apartments. Very few habitational accounts include locations that have been part of a portfolio for a five-year period. As such, “new” locations are continually being added, and the corresponding loss information is rarely available. It’s virtually impossible for underwriters to have a true picture of historical losses for all locations. Comparatively, underwriting a manufacturer is relatively simple: the underwriter knows the product being manufactured, and if the risk has been in business for five years, he or she has an accurate loss picture. That’s rarely the case with habitational schedules. For this reason alone, many markets have stopped writing large schedules. It’s also time-consuming for a carrier to run crime reports on every location prior to quoting.

How can we help our insureds

Most claims occur because of lack of maintenance and/or lack of security. Both may seem like fairly obvious needs, but it takes capital to maintain a large schedule of locations which not all property owners have. One of the first questions a broker should ask is, “What is the insured doing about maintenance and security?”, “What is their annual budget?”, and “What items are routinely maintained?” There is a direct relationship between well-managed and well-maintained properties and the corresponding loss experience.

If a large claim is listed on the loss runs, we’ll ask you, the insured, about what has been done to remedy the situation. For example, in the claim mentioned earlier in this article involving the tenant with scalding bathwater, the owners locked the temperature of the hot water heaters on their property to 110-120 degrees to ensure this type of loss would not happen again. We’ll make sure the underwriter knows what actions have been taken when a large claim has occurred.

When it comes to addressing security – or lack thereof – the solution is also straightforward. Guards are needed in locations with high crime. Cameras should be installed. Keys should be changed when tenants move out. Front doors need to have peep holes. Sliding glass patio doors should be secured. The area should be well lit. We will advise you to take these seemingly obvious but critical actions which will make a major difference when it comes to keeping your losses (and premium) to a minimum.

While there are carriers still willing to underwrite apartments, the number is decreasing, and most of them have limitations. They may shy away from larger schedules, restrict the number of units, or not offer any Assault & Battery coverage, especially if there has been a claim. Some carriers have a maximum percentage of subsidized, students or elderly tenant units they will accept. Also, most carriers will not offer per-locations aggregates, but rather they prefer to cap the policy aggregates at $5,000,000 or $10,000,000.

We understand the difficult nature of underwriting this class for carriers and proactively help our insureds to mitigate risk, and are involved in claims handling, which creates a win-win situation for all parties. Not only you’re positioned in the best possible light for underwriters, thus leading to better terms for you, we’are also helping to make sure that carriers view this class as one that can be written efficiently and profitably.

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The original article by Phillip B. Burke was edited and optimized for Paperless Insurance blog. 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.
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.
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As always with construction projects, it is important that owners of new developments understand insurance coverage to ensure that there is adequate insurance to address any potential risks during and after the construction of the project. While most owners maintain commercial general liability policies or rely on project-specific policies, these policies may not fully protect the owner against any and all risks that they may face during and after construction. This article addresses two unique areas in which owners should take special note to ensure that they are covered for these particular risks: third party action over claims and products-completed operations coverage.

“Bodily Injury” to:

1.  An “employee” of the insured arising out of an in the course of:

1)  Employment by the insured; or

2)  Performance duties related to the conduct of the insured’s business; or

2.  The spouse, child, parent, brother or sister of that “employee” as a consequence of Paragraph (1) above.

This exclusion applies whether the insured may be liable as an employer or in any other capacity and to any obligation to share damages with or repay someone else who must pay damages because of the injury.

This exclusion does not apply to liability assumed by the insured under an “insured contract”.

[framed_box]About the Author
Grace A. Nguyen is a Senior Counsel at Chapman Glucksman Dean Roeb & Barger which has offices throughout California. Ms. Nguyen specializes in complex multi-party litigation, including construction and real estate claims, environmental, employment, professional liability, commercial, business and catastrophic casualty litigation. In 2016 Ms. Nguyen was selected as a Super Lawyers Southern California “Rising Star,” for her demonstration of excellence in the practice of law, which is an honor limited to less than 2.5 percent of California attorneys.

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]