Masonry Magazine March 1982 Page. 15
INSURANCE
Coverage Check List
FOR CONTRACTORS
Prepared by the MCAA Insurance Committee in cooperation with Walter Derk and Richard Lietz of Fred. S. James & Co., Chicago, Illinois, MCAA's Insurance Consultant.
Without implying that any contractor, large or small, should necessarily buy all of the following coverage and optional extensions or that doing so will guarantee a good insurance program, we list here most of what is commonly available as a check list. You or your insurance representative should periodically examine current and renewal policies to determine which of these are presently insured, how much additional premium needed extensions would cost, and which, if any, to buy. Further, we have included an administrative check list as a starting point for any comprehensive review of your commercial insurance program.
The following coverage check list is meant to be a guide for use by members of MCAA. It makes no pretense to be "complete" nor to imply that good risk management dictates these extensions for every contractor. Such decisions can only be made one-on-one, based upon market conditions, claim history and the buyer's philosophy toward assumption of risk, price and other factors.
ADMINISTRATION
1. Do you keep your payroll records in a format that clearly separates overtime payroll from regular payroll?
NOTE: Only straight time pay scales need be reported for Workers' Compensation premium calculations, if your records clearly separate extra premium.
2. Do you request and receive from your insurance representative loss experience reports for your General Liability and Workers' Compensation policies?
NOTE: The losses that your insurance company assigns to you, normally omitting the current year, are used to develop your experience modifications. It is important that only your accidents be used to determine your experience modification.
3. Does your insurance representative "pre-check" your General Liability and Workers' Compensation audits for accuracy prior to sending and/or billing these items to you?
4. Does your insurance company auditor allocate the proper payroll or receipts to the corresponding insurance rates?
NOTE: For example, is any of your Executive Supervisor payroll assigned to your Masonry payroll?
5. Does your auditor limit General Liability weekly payroll maximums?
6. Are you receiving transition credits under Workers' Compensation if your state is eliminating the average weekly maximum payroll?
WORKERS' COMPENSATION AND
EMPLOYERS' LIABILITY
1. Increased limits, coverage B-Employers' Liability
2. Broad Form All States Endorsement
3. Coverage C, Voluntary Compensation coverage
4. Status of executive officers or partners
5. Status of domestic employees sent outside the U.S.A.
6. Foreign employees
7. Repatriation expense
8. Longshoremen's and Harbor Workers' Act, Maritime, Jones Act exposures, if any.
9. Federal Employers' Liability coverage
10. Monopolistic Fund states coverage:
Nevada
North Dakota
Ohio
Washington (State)
West Virginia
Wyoming
Puerto Rico
11. Stop-Gap Employers' Liability coverage
12. Deductibles, where permitted
13. Policy dates consistent with Umbrella Excess Liability coverage
14. Joint Venture policies
15. Coverage for newly-formed entities
16. Advance notice of cancellation by carrier
GENERAL LIABILITY
1. Comprehensive policy form
2. Broad Form Liability Extension Endorsement
3. Broad Form Blanket Contractual Liability coverage
4. Deletion of selected Contractual Liability exclusions
5. Completed Operations-Products Liability coverage
6. Vendor's Liability protection under manufacturers' policies, if any products are sold
7. Broad Form Property Damage coverage