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Do You Need Railroad Protective Liability?

Do You Need Railroad Protective Liability?

In most cases, when a business purchases insurance, the coverage protects that business. If coverage extends to another party, it is often done by endorsement, such as an additional insured form. There is at least one case where this isn’t true: Railroad Protective Liability (RRPL). As the name states, these policies are related to railroads. Coverage is purchased by a contractor but the coverage is for the railroad. What Is Railroad Protective Liability? Railroad Protective Liability insurance is coverage that was designed by railroads and the insurance industry. It protects railroads from liability they incur due to the work of contractors on or near a railroad line or right-of-way. This includes work on or near a train station, the tracks, on land owned by a railroad, and within 50 feet of any railroad property. Do You Already Have RRPL? If you already have Commercial General Liability (CGL) insurance, you may think that it will cover you anywhere you do work. However, work on or near railroads is specifically excluded by excluding contractual liability for anything related to railroads. This is the portion of the Commercial General Liability Coverage Form (CG 00 01 04 13) that relates to insured contracts: What does this mean? If your work contract is with a railroad or includes work on or near railroad property, you have no coverage if the claim is railroad-related. Bottom line: you need RRPL in these situations. What Makes RRPL different? RRPL is a policy that is meant to cover the gaps in the CGL policy relating to railroads. The coverage is typically purchased by the contractor, but the named...
Insurance for Protest Marches

Insurance for Protest Marches

In the current political climate, it seems there are protest marches every weekend, and sometimes during the week. These may be associated with certain holidays or anniversaries of important dates. The point is, they happen frequently. While some protests are small, unplanned gatherings, marches are a different type of gathering. They often require months of advanced planning, funding, and scheduling. Marches are often required by cities and states to have permits, usually requiring a fee and proof of insurance. So where can you get insurance for protest marches? Hayes Brokers can help you with that. Liability Insurance Most cities and states require organizations to have liability insurance for any organized function being held on public property. When applying for a permit, organizers will receive a packet with information that includes the insurance requirements. These insurance requirements usually include a list of limits for general liability and auto liability, as well as wording that is required for adding the governmental agency and others as additional insured. They may also require a waiver of subrogation or other wording to protect themselves. This insurance may only be required for the day, and depending on the march or activity, a special events policy may work to satisfy the governmental authority and protect the organization in the event of problems during the march. However, standard insurance companies may not be willing to offer one day coverage for events with a history or reputation of problematic, violent or destructive behavior. Don’t Purchase Insurance Online Because of their insurance requirements, many governmental and municipal agencies will offer links to purchase insurance on their websites. Do not...
Application Misrepresentation/Fraud

Application Misrepresentation/Fraud

When researching insurance options the most tedious part of the process is filling out application after application after application. Every company seems to have their own form to complete, and no other application will do. Insurance companies require applications to find out all they can about your business operations. They want to know what they are potentially going to cover so that they can rate your risk properly and charge the appropriate amount of premium. They may also choose to decline a business applicant if the type of business is not something they are interested in insuring. Have You Reviewed Your Application? Depending on the size of the application you may have several pages to fill out, and then there is the signature line that comes at the bottom of the last page. It is usually proceeded by a bunch of legal jargon that most people don’t read prior to signing – but they should. This is what it looks like on the Acord 125 Commercial Insurance Application: That’s a lot to read, but it is definitely worth taking a moment to read and discuss with your broker prior to signing. What Constitutes Material Misrepresentation or Fraud? Material misrepresentation or fraud is defined as a misstatement in answer to a question on an application. That question is so important that if it had been answered truthfully, the insurance carrier may have declined coverage or charged a higher premium for the insurance policy issued.  It can be any of a number of things including: Misrepresenting prior loss history to a new insurance carrier.Failing to disclose criminal convictions or bankruptcies.Misrepresenting the...
“Alarming” Things About Insurance

“Alarming” Things About Insurance

If you have property insurance (and you should) the application may have asked about your security measures. Do you have armed guards? Do you have a sprinkler system? Do you have a burglar alarm system? In some cases your security measures may earn you a discount on your policy premium. However, they probably also include something else: a Protective Safeguards endorsement. What is that, and could it be a problem? Protective Safeguards Endorsement The Protective Safeguards endorsement will look something like this: The premises and building numbers will correspond with the location(s) scheduled on the declarations page of the policy, and each one will have one or more symbols listed next to it, each starting with “P-”. P-1 is an Automatic Sprinkler System P-2 is an Automatic Fire Alarm P-3 is a Security Service that makes hourly rounds P-4 is a Service Contract with a privately owned fire department P-5 is an Automatic Commercial Cooking Exhaust and Extinguishing System P-9 is any other protective system shown and described in the schedule Why List Protective Systems? If you list a protective system on your application, you will most likely receive a discount on your coverage. However, the insurance company will require that the protective system be in complete working order at the time of a loss, otherwise they will not pay on the claim. The endorsement itself includes a provision adding an exclusion to the policy that says if the policyholder knows that the protective system was not working prior to the loss, then there is no coverage. If the protective system fails because it was not properly maintained, there...
Limited By Your Business Insurance?

Limited By Your Business Insurance?

As a business owner, it is natural for you to always be looking for ways to make a profit. Sometimes these ideas come in the form of new products and services that you can provide to customers. Innovation is important in any industry, but there might be one small hitch in your plans. Does your current insurance policy cover the new service or product? How can you tell? General Liability Policy Hazards On your general liability policy (or your package policy that includes liability) there is usually a page that lays out the hazards and rates. This page includes the following: Class Code. This is a five-digit code number that is assigned to each and every industry component. What your business does will fit into one or more class codes. For example: 91560 – Concrete Construction 97447 – Masonry Some are even more specific, such as restaurants, where classification options include whether alcohol is sold, how much is sold, and whether there is table service. Description. This is a brief description based on the class code number. Rating Basis. This is where your premium amount comes from. Each class code has a basis, which can be area, subcontractor costs, payroll or gross receipts. Rate. This is how the premium is calculated. Insurance companies set rates for class codes and then multiply them by the rating basis to get the premium they will charge. It is a good idea to review this page with your insurance broker to be sure that your business is classified correctly and that all components of your business are accounted for. Sometimes insurance companies will...