GL on mobile home erection contractor

[Rob]

Mobile home assemblers have a risk of damaging the home while assembly/erecting it and it stands to reason that it would be excluded under the c/c/c exclusion in the GL policy (unless there is some "exception" that I am missing). So, can you think of any reason why the mobile home dealer would require the mobile home contractor to carry GL and not even request to be named as additional insured? Would an "all risk" installation floater cover damage to the mobile home if while erecting it, it collapsed and say, one of the walls broke?

[Rlevine]

Rob,
This risk has similar coverage concerns as an Auto Mfg, Gargage risk or a Marina/Boat operation. Without knowing the specifics of the business, my first question is who owns the Mobile Home. The CCC exclusion applies to Other Property in your care custody and control. If they still own it, I don't think it would.
A Marina would buy Marine Operators Legal Liability and a Garage risk would buy Garage Keepers Legal Liability to cover losses to customers property in the CCC.
If the Mobile Home Body is considered a vehicle, this might be an approach. Why make examples up, I would recommend that MH Dealer to require coverage from the MH Contractor.

[Rob]

Rob,
This risk has similar coverage concerns as an Auto Mfg, Gargage risk or a Marina/Boat operation. Without knowing the specifics of the business, my first question is who owns the Mobile Home. The CCC exclusion applies to Other Property in your care custody and control. If they still own it, I don't think it would.
A Marina would buy Marine Operators Legal Liability and a Garage risk would buy Garage Keepers Legal Liability to cover losses to customers property in the CCC.
If the Mobile Home Body is considered a vehicle, this might be an approach. Why make examples up, I would recommend that MH Dealer to require coverage from the MH Contractor.

The risk does not own the mobile homes. The mobile home is not considered a vehicle.

So....we have a gap in the GL still.

[LadyBroker]

If I am reading your original question correctly, you are wondering why the mobile home dealer would require GL but not All Risk Installation coverage? I am going to guess it's because if the home is being installed, it's been purchased by a private owner, and the dealer probably doesn't care about damage to the home at that point. Would the home buyer's all risk policy cover damage to it while it is being installed?

[Rob]

If I am reading your original question correctly, you are wondering why the mobile home dealer would require GL but not All Risk Installation coverage? I am going to guess it's because if the home is being installed, it's been purchased by a private owner, and the dealer probably doesn't care about damage to the home at that point. Would the home buyer's all risk policy cover damage to it while it is being installed?

Well, whether the private owner has purchased insurance on it at that point is something I'll need to find out.

The original premise of my question is partly why would the dealer require GL (especially when they are not requesting to be named as additional insured so I see no benefit to them, only to the policyholder) and also to figure out how to fill the gap for the policy holder. He has had insurance forever and I'm the first one to tell him about the CCC exclusion and get the "you mean to tell me that this policy won't cover the damage to the home while we're installing it?" question. Nope, and I recommend an installation floater, Mr. Customer, please sign this recommendation here.

[LadyBroker]

I see your point now....I wasn't registering the lack of Additional Insured endorsement.

[MassAgent]

Rob,
The dealer may need coverage verification for premium audit purposes. Without a certificate of liability insurance, the carrier can charge the sub's cost as "payroll" under the carpentry class, which carries a much hire rate than the "total cost" rate under the insured sub classification. The dealer's carrier may not require additional insured status to the dealer for the insured sub class to apply - it is the carrier's discretion.