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What is Rigger’s Liability Insurance?

What is Rigger’s Liability Insurance?

For contractors, the landscape is always changing. Many General Contractors are now using insurance consultants and certificate clearinghouses to verify insurance coverage and endorsements. When third-party insurance administration comes into play, you begin to hear new terms such as “Rigger’s Liability.”  What is Rigger’s Liability? Rigger’s liability insurance is a specific form of insurance coverage for contractors. It is insurance that covers a contractor’s liability that arises out of the movement of property and equipment belonging to others. A common example of this would be a company who lifts air conditioning units by crane to the top of a building. As stated above, this is liability insurance which covers property damage to others, but not property damage to the rigger’s own equipment. Do I Have Rigger’s Liability Coverage? If you regularly use cranes or other equipment to move or haul equipment belonging to others, you probably have rigger’s liability insurance coverage in place. We recommend that you review your policies to be sure, or contact your broker. If moving property or equipment of others in this manner is incidental to your other business activities (meaning it if often unplanned and only happens once in a blue moon) then you may be covered by your Commercial General Liability insurance policy. This is another instance where you should talk to your broker. How Can I Get Rigger’s Liability? If you are in the business of moving the equipment and property of others, then rigger’s liability should be a component of your business insurance portfolio. This can be done as an endorsement on your commercial general liability insurance policy or written as...
Broker of Record / Agent of Record

Broker of Record / Agent of Record

If you are actively shopping for an insurance policy for your home or business, you may be asked to sign a broker of record or agent of record letter at some point during the process. While it may seem like a small thing, it can affect the quotes you are able to get for insurance. Here’s the scenario:  your insurance renewal just showed up with a huge increase. You decide to shop around and contact a couple of brokers and insurance companies and put them to work getting quotes for you. Suddenly, one or both brokers is telling you they need an agent of record or broker of record letter because “the market is blocked”. Should you sign? What is a Broker/Agent of Record Letter? An Agent of Record (AOR) or Broker of Record (BOR) letter is a document that you must sign that says you are naming an agent or broker as your representative to negotiate coverage and premiums with a particular insurance company. It may include a statement saying that you wish to rescind a certain waiting period (usually 10 days), which means that the agent or broker can receive quotes from the insurance company right away. Why Do You Need an AOR or BOR? Independent brokers and agents are able to access many insurance companies. When you submit an application, your broker will go to all of the available insurance companies that will be most likely to write the insurance for your home or business. Unfortunately, many brokers have access to the same insurance companies. If an insurance company receives more than one application for the...
The Best Way to Shop Your Insurance

The Best Way to Shop Your Insurance

If you’re like many businesses, you are looking for ways to cut your expenses. That can mean anything from changing the brand of pens you use to laying off staff. Sometimes the most noticeable increase in expenses comes when your insurance renewal shows up with an increase. The best way to decrease insurance premiums is by shopping your coverage. There are many bad ways to do this, and a really good one. Don’t Shop Online Many insurance companies offer websites where you can complete an online application and receive an instant quote. These may seem like a great idea, but are you getting what you need, or just what you pay for? Sure, shopping your business insurance online at 3 am while eating leftover pizza in your pajamas sounds great now. After completing the fourth online application and receiving a fourth wildly different quote, you may start to feel like this is more trouble that it is worth. In addition, are you really getting the insurance that your business needs? One-size-fits-all insurance coverage is a myth. Every business has different needs and there are probably things your business needs coverage for that the online application isn’t asking about. That is the stuff that won’t be covered. Don’t Go Everywhere Another seemingly good idea is to get a whole bunch of different insurance brokers or insurance companies working on your insurance quotes at the same time. This can also be a lot of work. You may be making a lot of phone calls or insurance agency visits, completing more applications, and fielding a lot more questions and quotes. The good...

June 2019 Cannabis Update: To Shroom or Not To Shroom?

In the last month, two cities have decriminalized magic mushrooms and certain other natural psychedelics. The first to cross the threshold was Denver, in May passing the Denver Psilocybin Mushroom Initiative by a narrow margin. This doesn’t make mushrooms legal in that city but deprioritizes criminal penalties imposed by the City of Denver for possession of psilocybin mushrooms.The second city was Oakland, CA, which took things a step further. The city decriminalized several entheogenic plants, including magic mushrooms and peyote.Expanding into natural psychedelics would seem to be a natural next step for those who own cannabis-related businesses. However, it should be noted first that decriminalization does not legalize these substances, and second that there is likely no coverage under your current insurance policies for these substances.Your business insurance coverage likely contains an “Other Plants and Products Exclusion” that excludes coverage for plants other than cannabis or cannabis related products. The endorsement will look something like this: Please note that the exclusion applies to both the Commercial General Liability coverage form and the Products/Completed Operations Liability coverage parts of the policy.What Are The Consequences?It is important to note that while possession or usage of magic mushrooms and/or other natural hallucinogenics has been decriminalized, they have not been legalized. Dispensaries or other retail establishments may be subject to legal action even within those cities where decriminalization has occurred.In addition, you may lose your insurance coverage. Insurance carriers who discover their insured producing, stocking or selling these substances may choose to cancel your policies outright or nonrenew them upon expiration. Since these substances are still illegal it would be impossible to place coverage with another carrier.Don’t lose your livelihood....
Who Is An Insured?

Who Is An Insured?

When purchasing insurance for your business, the application will ask for the name of your company. Typically what you will put there is the company’s corporate name, as well as any “Doing Business As” (dba). That determines the “insured” party on the policy. Did you know that on many policies the “insured” can be more than just the business? In fact, coverage may extend further than you think. It Depends on Your Corporate Structure The typical Commercial General Liability Coverage Form (CG 00 01) reads as follows: In every instance, the company is covered, as well as the decision makers within the company, depending on the structure. However, they are covered only as it relates to their duties and/or conduct within the operations of the business that is being insured. But Wait, There’s More The CGL policy goes on to state: As with directors, officers and the like, conduct of employees and volunteers must be related to the business in ordered to be covered. In addition, bodily injury or personal advertising injury caused by these individuals to owners, managers, directors, other employees or volunteers is not covered. Any property damage to company owned property by these individuals is also not covered. Anything Else? Actually, yes, there is more. The policy also extends coverage to newly acquired or formed organizations as named insureds, except for these types: A partnership.A joint venture.A limited liability company. These types of companies must be added to the policy right away.  Any other organization will have automatic coverage for up to 90 days from the date it was formed or acquired. No coverage is offered...