Additional Insured Issues - 1985 Version Equivalent

In reviewing the insurance requirements of a construction prequel statement, I saw the following question: "Will additional insured be granted on a CG 20 10 (11/85 or equivalent)". The choices are yes or no. The technically correct answer: unless you have the 1985 version (does anyone still have this), there is no such animal as equivalent.

What most are asking for is additional insured for ongoing and completed operations. Chances are you have this. The old saying, "The Devil is in the Details" comes to mind here. The trick and the problem is not in providing ongoing and completed operations coverage, but it is in the definition of the coverage trigger.

In the 1985 version, coverage is triggered by "Liability arising out of 'your work' "

The newest version (07/04) has changed the coverage trigger using the following language. "But only with respect to liability for 'bodily injury', 'property damage' or 'personal and advertising injury' caused, in whole or in part, by:

1985 was very broad in 2 ways:

• Liability - without any definition of what the liability is covered (which could include many intended excluded liabilities such as pollution, employment practices).
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• Arising out of your work. Without getting into the details of the definition of "your work", the liability only had to show that it was a casual relationship with your work. You did not have to be the cause, it just had to arise from the work you did.

2004 is very specific as to what liabilities are covered and the scope of the coverage.

The only coverages extended to the additional insured are bodily injury, property damage, and personal and advertising injury. If you have limited pollution or employment practices or professional coverage, this will NOT be extended under these endorsements.

The trigger is your acts or omissions of you or your subs. It has moved from a casual relationship to a very direct action (or lack of) in order for coverage to occur.

Okay, now that you are thoroughly bored (isn't insurance 101 fun!) You are asking: "Okay, so what does this all mean to me?"

It means that you DO NOT have the 1985 equivalent and it does not exist.

The options remain to either put down yes or not be truthful (exposing you to uninsured litigation because you said you did and didn't), or you can put down "no" and not qualify.

So how do you answer the question and still pass the prequalification?

Corporate Liability Insurance

Corporate liability insurance is a must for any company in today's world. Nowadays, people just need a reason to file a lawsuit against anyone. Corporate liability insurance protects the directors, officers and the corporate body of the company against any lawsuits which are filed against them as a company. These lawsuits can be for any reason, and the most common of these is the mismanagement of the company.

In today's complex business word, it is not possible to work in a risk free manner. The best you can do is to minimize the risks which arise due to mistake which happen while functioning of the company. The corporate must understand the type of liability coverage required for them. The owners much meet with an insurance specialist to determine the risks under which the company operate and the suitable liability insurance policy which should be bought to mitigate that risk.

Various questions should be asked while applying for such an insurance policy. These questions should include the coverage of the policy, any exclusions applicable, inclusion of workers compensation liability insurance etc. The owners should also meet with the insurance specialist on a periodic manner to make sure that the policy covers the corporate adequately. Due to dynamic nature of the business, it is possible that some additional coverage is required or some coverage may not be required anymore due to change in business.

Currently there are only a few companies which have bought corporate liability insurance company. The companies are slowly acknowledging the fact that this is one of the most important insurance policies available for smooth running of their business. They cannot afford to not buy this policy. Even if they have to cut corners in other areas to buy this policy, they should do that. This could potentially save thousands and millions of dollars which they may need to settle lawsuits and other legal fees for attorneys.

Legal Liability Insurance

Running a business in current times is not an easy task. There are a lot of people who just want to take advantage of even a small negligent behavior to file a lawsuit against the company. Legal liability insurance becomes very important for any corporate to protect the company against any such lawsuits and the monetary damages arising from these lawsuits.

While doing the day to day tasks, there are chances that your customers or employees may misinterpret your actions. Even when you have no bad intentions to harm them, they may think otherwise which lead to legal action on their part. This type of insurance guarantees that financial protection to an insured party who might be required to pay damages resulting from legally negligent conduct.

This liability can arise due to various reasons. These include personal injury to a customer or employee, damage to property or even death due to negligent behavior on part of employee of the company. When a company decides to take this type of insurance, this policy protects the company owner, directors as well as all officers who are acting on company's behalf.

There are various types of liability insurance products available. As per the need of the company, it can buy general liability insurance, bodily injury insurance, umbrella insurance, cargo legal liability insurance or garage liability insurance. The type of insurance policy will depend on the business of the company and the risks which exist in their business. These policies cover the damages as claimed by the claimant as well as legal costs which are charged by the attorney representing your case in court.

It is very important for the company to understand the need and then decide upon the type of legal liability insurance policy required for them. They should consult the insurance specialist to determine this. They should also consider revisiting the policy on a periodic basis since the business and its needs are dynamic. Therefore the insurance policy coverage may need to be changed.

TYPES OF INSURANCE

Insurance can be termed as a form of risk management which is mainly used to protect an individual against the risk of prospective financial loss, if any. Insurance can be used as a tool to shield an individual against potential risks like travel accidents, death, unemployment, theft, property destruction by natural calamities, fire mishaps etc.

Different types of insurance is used to cover different properties and assets such as vehicles, home, health care etc. Basically, an insurance policy can also be known as a protection net which secures you from any financial losses in future.
All you have to do is pay the insurance agencies a specified amount every month, known as premium, so that they can take care of you by providing you financial back up in case of a sudden health emergency or a fatal incident.

There are two ways for getting an insurance done.

One way is to visit an agent and consult him for the best option you can avail for your situation. And then, trust him/her for their suggestion on the type of insurance they feel is right for you.

The other way is to research and choose on your own, the type of insurance which will be best suited for your situation. You should research the market as well as the net, to look for the best insurance companies, and further more, the most suitable type of insurance that they offer.

Also explore the various types of policies which are available to you in the market, and then compare to decide which one to choose finally.

TheLoanBazaar.com offer our clients with various types of insurance schemes and policies such as health insurance, travel insurance, life insurance etc, to name a few. The detail about all these types of insurance offered by us is as follows:

Health Care Insurance

With such high medical and health care costs these days, it’s hard to even think about visiting a doctor. But what about an unexpected mishap or an unforeseen disability or attack, where the potential medical bills could shoot up to a sky? Where would you get so much money from?

These are exactly the situations where you feel you had a security, something which could come to your rescue and save you from such financial crisis. While some companies do provide its employees with health insurance, for others, this is a must.
Especially for the aging couples, who have a comparatively more chances of needing emergency bill money. The health insurance does it all, so that they do not have to worry for the huge payments at the last minute. A health insurance can cover all from a routine immunization to a major illness.

Life Insurance

Loss of a family member is a catastrophe which glooms a family’s life. But even more tragic is the death of a sole bread earner for the family, who then has to go through the pain of losing their loved one, as well as the financial loss putting their survival in jeopardy.

This financial hardship due to a sudden death of a family member or a disability resulting to a loss of job or inability to work can be avoided to a great extent by taking up a life insurance policy. A Life insurance or disability insurance covers such losses and pays a family, compensation to restore the earnings lost by them due to a sudden death or disability.

The monthly premiums for a life insurance are generally based upon the age, health, and occupation information of the applicant, in addition to the total benefits to be paid to him for his policy.

Home Insurance

Real estate property and hard assets are subject to accidental risks like theft, destruction due to natural disasters or fire accidents etc. with such huge investments gone into buying a real estate property like your home or office, the risk involved is a loss of large amount of money.

Home and property insurance helps you in managing and protecting against these risks. The cost of a real estate property and its insurance is mostly based upon the worth of the already insured hard assets and also the location in which the assets are situated.

Travel Insurance

This is intended to cover any of the financial or any other losses which were incurred by the insured while traveling, be it nationally or internationally, such as mountain trekkers, cruise travelers etc.

Auto Insurance

Any vehicle on road, no matter how safe its driver is, is bound to meet with an accident or two, which may leave it with just a few scratches, or crash it up totally. Most countries today require you to have an auto insurance while on road in your vehicles.

If you have an accidental car crash, a total repair could cost you a fortune. On the other hand, a little scratch on your Land Cruiser might also soar up your bills to a high.
Whether or not you need an auto insurance mostly depends on the type of car you own.

If you have an expensive car and a little repair could wipe you out financially, you should very well go in for a buying an all-inclusive and crash insurance which could protect you against any and every harm done to your vehicle.

Definition of Insurance

Definition of insurance is a promise of compensation for specific potential future losses in exchange for a periodic payment. Insurance is designed to protect the financial well-being of an individual, company or other entity in the case of unexpected loss. Some forms of insurance are required by law, while others are optional. Agreeing to the terms of an insurance policy creates a contract between the insured and the insurer. In exchange for payments from the insured (called premiums), the insurer agrees to pay the policy holder a sum of money upon the occurrence of a specific event. In most cases, the policy holder pays part of the loss (called the deductible), and the insurer pays the rest.

Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of as a guaranteed and known small loss to prevent a large, possibly devastating loss. An insurer is a company selling the insurance; an insured or policyholder is the person or entity buying the insurance.

The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.