Masonry Magazine February 1961 Page. 31
fees are often involved, and this policy provides for defense of the owner. If the contractor's primary insurance should be inadequate or void for some reason, the coverage would become primary and all the more important. Insistence upon a Hold-Harmless Agreement in addition to a Protective Liability Policy means considerable duplication, although the former can be more sweeping, because it is not subject to normal conditions and exclusions of a Liability Insurance Policy. A rate concession because of this duplication is normally available when both are provided by the same insurance carrier. We recommend your keeping that fact in mind when negotiating with your insurance agent.
Protective Liability premium rates also apply per $100 of contract cost, but are much lower than those for Contractual Liability. For example, a typical contract let for $100,000 in Illinois may now involve a Protective premium of about $113.00 at average limits, while a broad Hold Harmless Agreement would cost about $427.00 to insure. If that contract were for $500,000, the cost for Protective Liability might be about $507.00, while the Contractual Agreement would cost about $1,922 to insure.
To summarize, Hold Harmless Agreements are very much in evidence and are here to stay, though we hope that the Illinois Structural Work Law is not. We expect insurance carriers to gradually broaden automatic coverage provisions in their policies to fill the need, but even more important may be an awareness that:
(1) All Hold-Harmless Agreements involve premium which, in Illinois at least, is going to be much higher than before. On April 6, 1960, the basic Bodily Injury premium rates for Contractual Liability and Protective Liability doubled in consideration of the number of Scaffold Act claims reported.
(2) More and more agreements are turning up in the unnecessarily broad category, where even the high premiums mentioned become secondary to the likelihood of substantial loss settlements.
(3) Resistance by contractors to initially severe contractual conditions in specifications, if reduced to the level of common sense, is often surprisingly effective. It is difficult to disagree with the idea, "You pay for what you do and I'll pay for what I do."
(4) After executing a Hold-Harmless Agreement, the contractor should promptly:
(a) See that it is properly insured at adequate limits of liability.
(b) Request the same of all his sub- contractors.
(c) Secure Certificates of Insurance mentioning coverage for such Contractual Liability.
Because this is a big subject, I have just tried to hit upon the high spots.
MASONRY - FEBRUARY, 1961
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19 61 19/0 61 SPECTRA-GLAZE glazed concrete masonry units put you in position to eliminate pre-fabs from your market. SPECTRA-GLAZE units with accurate modular dimensions lay up fast and are available in many special shapes such as bond beams and vertical cores for utilities and new cove bases that need no floor recessing, fit door jambs. Build and finish a wall in one operation with thicknesses from 2" to 12" for partitions and loadbearing walls without back-up. SPECTRA- GLAZE cuts, saws and drills easily and without damage. Trucked to your job under individual protective covers with less than 1% breakage.
See SWEET'S CATALOG 4g/Bu for details or write for "Construction Details" and "Test Reports."
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You con profit from the latest startling breakthrough in glazed masonry by recommending SPECTRA GLAZE for new construction and remodeling. The new, soil-proof face is 80% glass silica sand, full eighth-inch thick with some characteristics from original satin surface deep into pores of concrete shape with which it's thermally in- tegrated. Not only will it pass stain tests with flying colors, but if can even be cleaned by such severe methods as sandblasting. It's so hard you can use it for floors. Talk to your architects and direct contracts about this profit-for-you product.
Remember, too, 80% of the money spent en SPECTRA-GLAZE masonry job stays in your area boosts local economy.
THE BURNS & RUSSELL COMPANY Box 6063, Baltimore 31, Maryland
Manufactured in 27 cities and distributed throughout the U.S., Canada and England
at the M.C.A. Show SEE SPECTRA-GLAZE at BOOTH #32
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