Zurich Builders Risk

[Porter]

Does anyboy have a letter that they get signed by builders risk clients that states the policy has no liability? I am looking for someing to have clients sign that will hold up in court if the client comes back and says they thought the policy had liability.

Any help would be appreciated.

Thanks,

Porter

[InsMgmt]

That is why you have an attorney on retainer, yes? If not, you might want to consider discussing this with someone who is competent to deliver legal advice.

Many of us in here are not attorneys, though we sometimes come dangerously close to practicing law.

Having said that, a simple disclaimer signed by the insured, a sticker on the outside of the policy "THIS POLICY DOES NOT PROVIDE GENERAL LIABILITY INSURANCE COVERAGE", or, perhaps a reverse-coverage checklist (a list of coverage not included) might do the trick. But, if it were me and I wanted to make sure that the disclaimer would hold up in court, I would hire an attorney.

[LadyBroker]

Where is the Liability being placed, when you are writing only the Property? If it's a COC, typically the General carries the liabilty, although you can always offer your client an OCP to pick up any premises exposures that the Contractor's GL coverage might not pick up.

[MissOptimis]

Are you offering the liability at the same time? This is an obvious hint to the client that it is not included, that there is an additional cost for it. If they decline definitely make it clear that liability will not be provided. A disclaimer or a checklist is an excellent idea though. Although Zurich's Builder's Risk is an excellent product it is not for everyone. Giving the client the option helps as well.

P

[darnovak]

Hey "expert" advice givers, when you sell any monoline or multiline policy, do you have the insured execute a sign-off that you offered every other conceivable type of coverage to them? When you sell workers comp, do you get the insured to sign off that you offered business auto or general liability or building coverage or inland marine, etc. and they refused? Does the disclaimer accompanying the policy/binder/insured's copy of the application state "this workers compensation policy does not cover property damage caused by roving bands of chickens...or coverage on their home...or personal liability...or inland marine coverage on their dies and patterns... ad infinitum.....?" So whenever we sell any policy (multiline or monoline), we have to add a disclaimer and obtain a sign-off for every other conceivable line of insurance this insured could possibly need? Hahaha This was a great laugh. More...... more.....

[Porter]

Thank you for your replies. Our new procedure is to require a liability dec page befor we bind the builders risk.

Thanks,

Porter

[InsMgmt]

Does the disclaimer accompanying the policy/binder/insured's copy of the application state "this...policy does not cover property damage caused by roving bands of chickens..."

Well, if we write an extensive number of policies in or near a community with a Perdue processing plant and the policy holders continue to believe that the property damage attributed to these roving bands of rebellious cocks and hens is, in fact, included in the policy when clearly such damage is excluded - then yes, we do affix a golden, hen-shaped sticker to the cover of the policy, which disclaims the hazard of roving bands of flightless, pecking, poultry and, more specifically, the peril of chicken scat - whether or not driven by wind.

The poster of the initial question was concerned about his liability exposure and asked for help in authoring a legally binding statement (disclaimer), which would hold up in court. Though we may be able to offer suggestions concerning a specific issue related to operational procedures, many of us taking our time to offer suggestions in this forum are not attorneys (though you may be), and, as such, should not attempt to provide legal advice.

Obviously, he should not be seeking legal counsel from the members of this forum, but neither should he be subjected to off handed comments suggesting the futility of steps he might take to avoid E&O claims. I'll assume that he knows his market, he understands what many of his clients do not understand and have raised questions concerning, and is simply taking measures, based on his operational experience, to avoid future misunderstandings and a potential E&O claim. I suppose I could make fun of his concerns and figure that his fears were brought to him in the middle of a nightmare caused by an especially spicy bowl of chili, or, that this is simply an unqualifed concern of an inexperienced agent, but I won't - I left that behavior back in high school. Boring as that may sound, there I stand.

Good question. Hope to hear from you more often.

[gregcw]

Does anyboy have a letter that they get signed by builders risk clients that states the policy has no liability? I am looking for someing to have clients sign that will hold up in court if the client comes back and says they thought the policy had liability.

Where is the Liability being placed, when you are writing only the Property? If it's a COC, typically the General carries the liabilty, although you can always offer your client an OCP to pick up any premises exposures that the Contractor's GL coverage might not pick up.

When I'm writing a monoline builders risk it is generally either for a person that is the contractor with General Liablity or an individual that has a homeowners policy that the liability can be extended from. Most of my homeowners companies will extend liabilty to a property/building location where they do not cover the building IF it is in the course of construction. If it is a business, their GL will cover the new location. I do not write the Zurich Builders Risk unless I follow one of these options. I also will, generally, not write builders risk unless I control the underlying liablity policy(ies). I think that this covers both concerns/questions.

[darnovak]

I never joke about insurance - even after 37 years of experience. I stand by my post, sarcasm and all. You can "sign-off" and "disclaimer" yourselves to death folks. Knock yourselves out. regards,

[rcenters]

This discussion has made me think of a very related question. When you guys get signoffs on other coverages they didn't buy, do you have them sign a form with a statement of a finite list of other possible coverage types or do any of you actually have your client sign an open ended statement that basically says there are many other coverage types available that they have not purchase and that we are available to discuss them.

Understanding, of course, that no one here(that's a pure ins agent) can give legal advice, is a finite list of coverages on your signoff sufficient? What about the one you didn't put there? And for an open ended list, would that even be considered to make any sense to a client?