Commercial General Liability Insurance Terms

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Commercial General Liability (CGL):

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CGL covers occurrences arising out of the premises operation of commercial buildings including elevators. Some common liability exposures are: 1. Premises 2. Operations 3. Products liability 4. Completed operations 5. Contracts or Contractual liability 6. Contingent liability 7. Personal injury (slander, liable, invasion of privacy) 8. Advertising injury

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A C.G.L. Policy is offered in 2 versions

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1. Occurrence Form 2. Claims Made Form Both forms are identical except that each has a different coverage trigger relating to Coverage A and B.

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Difference Between Occurrence and Claims Made”

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1. Occurred BEFORE the retroactive date, shown in the declarations,OR2. Occurs AFTER the policy period.

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The CGls Policy is broken down into the following sections

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Section 1 indicates the coverage’s afforded this would include BI and PD, Personal and advertising injury and medical payments Sections 2- Explains who is insuredSection 3- explains the limits of liabilitySections 4- ConditionsSection 5- Definitions explains the terms used in the policy (Note: Section V in a Claims Made form is for extended reporting periods and a Section 6 - is added for definitions.

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Section A

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this is for BI and or PD the following coverage’s are included in Coverage A:

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1. Premises

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this covers people injured or property damaged while on the premises which includes:a) Buildingb) Sidewalksc) Parking lotsd) Vacant land

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Operations

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this covers the operations or activities of employees and/or the products under their control away from the premises

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Products

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this covers injury out of the use or consumption of merchandise away from the premises of the manufacturer or vendor. The key is: off premises, non-possession of the insured.

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Completed Operations-

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this refers to construction type risks. This is similar to the products exposure. It refers to construction type risks, which have been completed and are put to their intended use. (Beyond control of the insured)

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Contracts or contractual liability

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this covers the assumption of liability as defined by the insured’s contract definition in the policy. It covers the act of holding harmless another party. Contracts, which are deemed to be necessary and basic in order to conduct business, are automatically covered under the premises operations liability exposure. They are referred to as ‘incidental contracts’ and include the following: (L.E.A.S.E.):

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L.E.A.S.E.

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Lease of a premises agreement- this is a basic requirement of a tenant. The landlord would want to be held harmless from possible liability from the tenant’s activities.Easement Agreement- this is when the owner of land allows another party the use of land in a limited way. The owner wants to be held harmless from possible liability.Agreement to indemnify municipalities- village governments often requires local businesses to hold them harmless from possible liability.Sidetrack agreement- a business located near a railroad track might want a sidetrack or spur leading from the main line to their place of business. Before the railroad would agree, the business would have to agree to hold them harmless from possible liability from the improper use of the track. Elevator maintenance agreement- this is for the contract between the owner of the elevator and the company that services it. The service company would want to be held harmless from possible liability due to the improper use of the elevator.

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Contingent liability

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this refers to liability, which arises out of work done by an independent contractor. Typically, an individual business cannot be held responsible for the negligence of an independent contractor some exceptions are:1. The activity is illegal2. The work is inherently dangerous3. The situation involved does not permit the delegation of authority.

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Fire damage legal liability

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this provides coverage for property damage for premises rented or leased to the named insured if caused by fire and is subject to it’s own separate limits in the policy. Coverage is on a per fire basis and not per occurrence.

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Exclusions for Coverage A

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1. Intentional acts on part of the insured2. Work related activities (would be workers comp)3. Automobile, Aircraft, Watercraft accidents (Note: this exclusion does not apply to the incidental parking of customer’s cars on premises).4. Dram Shop aka Liquor Liability (Note: This exclusion does not apply to host liquor liability).5. Personal property of others in the insured’s care, custody or control (Bailee)6. Discharge of pollutants7. War8. Nuclear

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Section I- Coverage B-

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this covers personal and advertising injury

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Personal Injury

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this means injury other than bodily injury arising out of one or more of the following offenses:1. False arrest or malicious prosecution2. Slander or libel3. Invasion of privacy

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Advertising Injury

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This is covered if caused by an offense committed by the insured in advertising, their good, products or services. Injury must arise out of one or more of the following offenses:1. Oral or written publication of material that slanders or libels a person or organization or violates a persons right to privacy.2. Misappropriation of advertising ideas or style3. Infringement of copyright, title or slogan.

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Exclusions for Coverage B

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1. The insured knows the oral or written publication is false2. A breach of contract 3. The failure of goods to conform to advertised form 4. Wrong description of the price of good, products or services5. An offense committed by an insured whose business is, advertising, broadcasting, publishing and telecasting.

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Supplementary Payments Under Coverage’s A & B: In addition to the limit of liability the company agrees to pay:

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1. All defense and court costs they incur2. The cost of bail bonds up to $2503. The cost of appeal bonds and bonds to release attachments4. Any other reasonable expenses incurred by the insured at the company’s request including loss of earning because of attendance at a hearing or trial for up to $250/day

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Section 1 Coverage C- Medical Payments

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the company agrees to pay the necessary medical expenses incurred within 1 year of an accident causing bodily injury under the premises operations liability exposure. (no-fault coverage)

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Section 2 - Who is an insured?

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This insured are considered to be individuals in connection with the conduct of business such as:1. Partners2. Spouses3. Officers4. Directors5. EmployeesNote: Provided they were acting within the scope of their employment.

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Other insured’s:

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1. Any person or organization while acting as a real estate manager (building super)2. Anyone having proper temporary custody of the insured’s property should the insured die (executor of estate, legal representative)3. Any newly acquired or formed organization for which the insured has a majority interest is covered automatically for 90 days or the end of the policy period whichever is earlier.4. Anyone driving “Mobile Equipment” with permission is covered for liability but not for injury to the driver or company employee.

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What is Mobile Equipment?

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Mobile equipment is covered for BI and or PD if it is a land vehicle and includes any attached equipment provided: 1. It is designed for use primarily off public roads 2. Maintained for use solely on or next to the premises (forklift) 3. Vehicles that travel on crawler treads (tractors, bulldozers) 4. Contractors and similar type equipment (crane, excavators) 5. Any other vehicle not listed above provided they do not transport persons or property for a fee and they’re not considered autos such as: Snow plows, street sweepers and cherry pickers. (Drivers would be covered under workers comp)

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Section 3 - Limits of Liability:

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A CGL Policy has two separate sub-lines of coverage 1. The general aggregate, which includes the premises operations liability exposure2. Products complete operations aggregate One Policy occurrence limit applies to both, however, their are two separate aggregate limits, which are reduced by the payment of each loss. (See hand out) (Note: the aggregate limits are always two times the per-occurrence).

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Section 4- Conditions

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See common policy conditions form handout

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Section 5- Definitions

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Explains terms used in the policy. (Note: Section 5 in Claims Made form is for extended reporting periods and a Section 6 is added for definitions.

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How is a CGL Policy rated?

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The types of risks are broken down into 4 major business groups and are rated as follows:

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Mercantile

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Classified by types of goods sold and are charged at a rate per $1,000 of gross sales

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Manufacturing

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Classified by final product and are charged at a rate of $1,000 per-gross sales.

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Contracting and Services

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The Company charges a rate per $1,000 of payroll for each classification of the insured’s operation.

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Buildings and Premises

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a. Apartments- rated per unitb. Hotels- rated per $1,000 of gross salesc. Office space rated per 1,000 square foot area

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Burglary

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The taking of:1. Property from within a locked safe or vault by a person unlawfully entering the safe or vault, as evidence by marks of forcible entry upon it’s exterior.2. The taking of the safe or vault from the premises.

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What is Theft?

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Means any act of stealing therefore it would include burglary, robbery and safe burglary. (All risk crime peril)

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What is a Premises?

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Defined as the interior of that portion of any building occupied by the insured in conducting the insured business.(Note: Premises can be amended by endorsement to include that portion of the grounds entirely enclosed by a fence or wall).

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What is a Watch Person?

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This means any person the insured retains to have care and custody of the property inside the premises and who has no other duties.

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What is a Custodian?

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This means the insured, any partner or employee having care and custody of the property inside the premises excluding any person while acting as a watch person or janitor.

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What is a Messenger?

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This means the insured, any partner or employee having care and custody of the property outside the premises.

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The are 4 parts to the Commercial Crime Section:

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they are

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Crime Declarations Form

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this includes the name and address, policy period, coverage’s, limits of insurance, deductibles, premiums, endorsements and notice of cancellation of prior insurance

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Common Policy Conditions Form

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(see handout)

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Crime General Provisions Form;Section A- General Exclusions

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1. Loss committed by the insured or any partner2. Loss resulting from the seizure or destruction of property by order of civil authority3. Indirect loss such as unrealized income4. Expenses related to any legal action (liability)5. War6. Nuclear

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Section B- General Conditions

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1. Discovery period loss must be discovered no later than 12 months from the end of the policy period2. In the event of loss the insured must notify the company a.s.a.p.3. The insured must keep records of all covered property so the company can verify the amount of any loss4 The insured must file a proof of loss within 120 days5. Any additional premises acquired by the insured are covered automatically for 30 days. This provision applies only if such additional premises are acquired by consolidation, merger or purchase of assets of some other entity.6. Salvage Distribution- Any recoveries less the cost of obtaining them will be distributed as follows:Step 1. To the insured until reimbursed for the part of the loss that exceeds the limit of insurance plus the deductible.Step 2. Then to the insurance company until reimbursed for the part of their loss equal to the settlement.Step 3. Then to the insured towards reimbursement of their deductible.

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Coverage Forms Indicated -

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Form A- Employee DishonestyForm B- Forgery and Alteration*Form C- Theft Disappearance and Destruction*Form D- Robbery and Safe Burglary*Form E- Premises BurglaryForm F- Computer FraudForm G- Extortion Form H- Premises Theft and Robbery Outside the Premises

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Form E- Premises Burglary

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Covered property other than money and securities inside the premises. The covered causes of loss are actual or attempted robbery of a watch person and actual or attempted burglary.

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Premise damage clause (Form E)

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this covers damage to the premises and it’s exterior provided the insured is the owner or is liable for damage to it. If a loss occurs, coverage is suspended until the premises is ready to resume operations with the same of security that existed prior to the loss. This provision does not apply if the insured maintains a watch person while the premises are closed for business.

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Limitations Under Form E

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Coverage is limited to $1,000 per occurrence for loss of damage to the following:1) Precious metals, precious and semi-precious stones, pearls, furs or articles containing such material when such material constitutes the principal value of such article2) Manuscripts, drawings or records of any kind or the cost of reconstructing them or reproducing any information contained in them

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Additional Exclusions Under Form E

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1) Employee dishonesty2) Loss occurring while there is any change in the condition of the risk within the insured's control that increases the possibility of loss3) Loss by fire however caused, except for damage to a safe or vault4) Loss occurring during a fire5) Damage from VMM but for an additional premium this coverage may be included

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Property Not Covered Under Form E

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Motor vehicles, trailers, semi-trailers or their equipment

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Form D:

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Robbery and Safe Burglary

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Section 1A – Robbery

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Property other than money and securities inside the premises in the care and custody of the custodian. The covered cause of loss is actual or attempted robbery

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Section 1B - Safe Burglary

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Covered property is property other than money and securities inside the premises in a safe or vault. The covered cause of loss is actual or an attempted safe burglary

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Section 2 - Covered Property

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Covered property is property other than money and securities outside the premises in the care and custody of a messenger. The covered cause of loss is actual or attempted robbery. (Note: Section 2 This also covers loss to covered property outside the premises for actual or attempted robbery while in the care and custody of an armored motor vehicle company but only for the amount the insured cannot recover under the contract with that carrier).

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Limitation Under Form D

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– Same as 1 and 2 of Form E

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Additional Exclusions Under Form D

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1. Employee Dishonesty2. Loss by fire however caused except for damage to a safe or vault3. Damage from VMM4. Loss or Damage to property after it has been transferred or surrendered to a person or place outside the premises a. On the basis of unauthorized instructions – computer fraud b. As a result of a threat to do bodily harm to any person or damage to any property – Extortion

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Theft Disappearance and Destruction

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Form C:

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Section 1

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This covers loss of money and securities resulting directly from loss by theft or destruction inside the premises or banking premises. Form C also covers loss or damage to a locked safe or vault cash register, cash box, or cash drawer located inside the premises for actual or attempted theft of or unlawful entry into these containers.

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Section 2

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This covers loss of money and sectaries outside the premises in the car and custody of a messenger for loss by theft disappearance or destruction. Note: Section 2 also covers loss of covered property outside the premises for loss by theft, disappearance or destruction while in the care and custody of an armored motor vehicle company but only for the amount the insured cannot recover under the contract with that carrier.

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Additional Exclusions Under Form C:

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1. Employee Dishonesty2. Accounting or math, errors and omissions 3. Loss resulting form the giving or surrendering or property in any exchange or purchase 4. Loss from damage to the premises by fire however caused 5. Loss of property contained in any money operated device unless the amount of money deposited in it is recorded by a continuous recording instrument device 6. Computer fraud and extortion 7. Damage from VMM to the premises 8. Voluntary parting of title to or possession of property

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Form G- Extortion

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See handout – Means the surrender of property away from the “premises” as the result of a threat communicated to you to do bodily harm to you or an “employee”, or a relative or invitee of either, who is, or allegedly is, being held captive.

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Form H - Premises Theft and Robbery Outside the Premises

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Section 2 of Form H is identical to section 2 of coverage from D Robbery and Safe Burglary. Form H is an alternate to Forms D and E and not a supplement.

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Business Owners Policy (BOP) (for mom and pop shop)

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A BOP is a prepackaged commercial form designed for small businesses covering buildings and or business personal property. The BOP also provides coverage on an “Occurrence Form” Basis.

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Coverage A – Building

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This insures the building or structure described in the declarations including completed additions, fixtures including outdoor fixtures permanently installed machinery and equipment. Personal property owned by the insured used to maintain or service the premises it would also cover materials equipment and supplies located at, on, next to or within 100 feet of the described location, which is used for construction alteration or repair of any structure at the location. It would also cover your business personal property in apartments, rooms or common areas furnished by the insured as landlord.

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Coverage B – Business Personal Property

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This covers your Business Personal Property located at, on next to or within 100 feet of the described location. Your Business Personal Property would include, furniture and fixtures machinery the equipment, stock or inventory, leased equipment and tenants improvements and betterments. It would also cover personal property of others in the insured’s care, custody and control. (Bailee Coverage) (Note: Goods in transit would be covered). a. Loss by theft of Jewelry is limited to $2,500b. Loss by theft of furs is limited to $2,500

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Additional coverage’s in the BOP Program:

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1. Debris Removal – This coverage is limited to 25% of the damage to the property insured. These expenses are included within the limit of coverage, however, if the amount of direct physical loss and debris removal expense is more than the limit and additional $10,000 is available for those expenses. 2. Preservation of Property – This coverage is for 30 days after removal3. Business Income Coverage – This is a simplified form, it covers the actual loss sustained up to a limited period of restoration typically 12 months. 4. Extended Business -Income after the property had been restored for up to a maximum of 30 days. 5. Business Income from Dependent Properties 6. Extra Expense Insurance - 7. Fire Department Service Charge – this coverage is limited to $1,0008. Forgery and Alteration Coverage – this coverage is limited t0 $2,500 9. Exterior Glass 10. Fire extinguishing system recharge expense – this coverage is limited to $5,00011. Outdoor Signs attached to the building are covered up to $1,00012. Pollution Clean Up – this coverage is limited to $10,00013. Counterfeit Money Coverage – this coverage is limited to$1,00014. Increased cost of Construction Insurance – this coverage is limited to $10,000

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Coverage Extensions Under BOP

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1. Newly acquired or construction Buildings under Coverage A are covered automatically for up to $250,0002. Business Personal Property at newly acquired locations is covered up to $100,000(Note: Newly acquired Buildings and or contents are covered for 30 days or the end of the policy period whichever is earlier) (Tangible things like tables, chairs/property get less time)3. Personal Effects of the insured and or employees are covered up to $2,5004. Valuable Papers and Records – this coverage is for $10,000 on premises and $5,000 off premises.5. Accounts Receivable Coverage – this coverage is for $10,000 on premises and $5,000 off premises. 6. Business Personal Property off Premises coverage is limited to $10,000 7. Outdoor Property the insured may extend coverage to outdoor fences, radio and TV towers, signs other than signs attached to the building, trees, plants, shrubs and lawns for the following perils only: a. Fireb. Lightingc. Explosion d. Riot or Civil Commotion e. Aircraft This coverage is limited to$2,500

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Optional Coverage’s in a BOP Program

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1. Outdoor Signs other then as provided for2. Employee Dishonesty 3. Money and Securities 4. Burglary and Robbery this applies to the named Perils Form only5. Boiler and Machinery

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Property NOT Covered in a BOP

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1. Aircraft 2. Motor Vehicles 3. Watercraft and trailers 4. Growing Crops and Lawns5. Contraband

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BONDS- aka: Suretyship

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Their are two Basic types of Bonds1. Fidelity Bonds – The Subject of fidelity bonds is Employee Dishonesty.2. Surety Bonds- The subject of surety bonds is the guarantee of an obligation.

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Surety Bonds

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Bonds are 3 party contracts 1. Principle (contractor) 2. Obligee (city)3. Surety (insurance company or guarantor)

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Examples of Principle

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. Contractor who wishes to build a building for a city2. The Mayor of a city who promises to discharge their duties faithfully (any public official)3. The guardian of a minor who certifies in court that they will oversee their client’s financial matters properly.

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Obligee

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The Obligee is the party who expects the principle to perform the contract or agreement in question. If the principle fails to perform, the Obligee will be reimbursed for damages according to the terms of the bond. Examples of Obligees:1. The city that requires bids from contractors on a building project.2. The city that expects the mayor to discharge their duties faithfully.3. The minor who has a guardian handling their financial matters

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The Surety- aka: Guarantor

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the surety is the party that guarantees the performance of the obligation of the principle to the Obligee. The surety is usually an insurance company or bonding organization.

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Differences Between Insurance and Suretyship:

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1. Insurance is a two party contract Suretyship is a three party contract 2. Insurance contracts may be cancelled; Suretyship is the guarantee of a written contract and cannot be cancelled until the contract is fulfilled.3. Insurance is designed to pay covered losses and is priced to reflect a loss payment. Suretyship is not designed to pay covered loss. In theory, no losses are expected. It’s just one party lending their good name or credit to another party.4. In insurance, when losses are paid generally the insurance company cannot recover the loss amount from the insured. The surety has the right by contract to recover any loss amount from the defaulting principle.5. In insurance, covered losses are beyond the insured’s control but the subject of a particular bond is within the principle’s control

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Underwriting of Surety Bonds aka: The 3 C’s of Underwriting:

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1. Character - The integrity of the principle is absolutely necessary before any bond can be written.2. Capacity- this is the principles ability to perform the obligation.3. Capital- this is important in those situations that requires the principle to spend their own funds.

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Precautions and Guarantees available to the Surety:

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1. Indemnity- assets of an outside party are made available to the principle to complete the obligation2. Collateral- assets are deposited with the surety to meet the obligations if and when called upon3. Joint control- the surety must approve the spending of money or property covered by the bonds.

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Contract Bonds

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this is a preliminary bond filed with the bid. It’s a guarantee that if the bidder is awarded a contract that they will sign the contract, provide a performance bond and undertake the work awarded to them. A bid bond is usually a small % of the estimated contract price (i.e. 5 or 10%)

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Performance Bond

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this is a guarantee that the contractor will complete the work awarded to them in accordance with the contract, which is made part of the bond (price, time frame, quality of material, etc.)

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Payment Bond aka: Labor and Materials Bond

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this guarantees payment of labor and materials by the contractor.

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Maintenance Bond –

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this guarantees workmanship and materials for a specified period of time.

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Subdivision Bond

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required of real estate developers to guarantee the installation of off-site improvements such as roads, curbs, sidewalks, sewers and drains, and trees.

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Supply Bond-

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this guarantees delivery of material according to specifications, price, date and place of delivery.

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Methods of Settling Contract Claims

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1. The Bonding Company may finance the contractor to enable them to complete their obligation.2. The Bonding Company may authorize the Obligee to re-award the contract and agree to pay any difference in cost.3. The Bonding Company may complete the obligation with their own organization.

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Bonds aka: Judicial Bonds

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They are required in court proceedings and fall into 2 categories:

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Fiduciary Bond

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1. a fiduciary is someone in a position of trust. Fiduciary Bonds are required of persons entrusted with property by the court. (Guardians, trustees etc.)

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Litigant Bond

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1. these bonds may be required of a plaintiff or defendant in a court case to guarantee the payment of damages that might be awarded the other party and or to cover court costs.

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License and Permit Bonds

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these are required by local or state agencies before they can engage in certain business or professional activities. These bonds guarantee compliance with the rules governing the license or permit. Examples are:1. Liquor Bonds- protect liquor authority2. Plumbers bond3. Electrician bonds4. Excess lines brokers

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Public official Bonds

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these are there to guarantee the performance detailed in a wide variety of public officials, these bonds guarantee the protection for the public, which they serve.

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Federal Bonds

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These Bonds Guarantee performance in compliance with federal laws and regulations. Examples:1. Liquor manufactures 2. Firearm manufactures 3. Pharmaceutical Companies 4. Any other industry under Federal regulation

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Fidelity Bonds

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the subject of fidelity bonds is employee dishonesty.

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Aspects common to all Fidelity Bonds

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1. It is a 3 party contract (Principle, Obligee, Surety) (Bonds are purchased by the Obligee)2. These bonds contain conditions and limitation under which they are liable 3. Coverage is automatically void when the employer has knowledge of a previous dishonest act of an employee and fails to disclose it and it is also void as to future acts of an employee immediately upon discovery of a loss covered by the bond.4. Discovery Period – this is a period of time allowed to the insured after the coverage ceases to exist within which to discover a loss, which occurred while coverage was in effect. The Typical discovery period is one year. 5. The Superseded Suretyship Clause - the Bond contains this clause, which agrees to indemnify the insured against loss under a prior bond. This is for losses, which would have been covered under the earlier bond except that the discovery period has passed.6. The term of a fidelity bond is continuous and remains in effect until formally cancelled by the Obligee or Surety.7. Fidelity bonds they do anticipate a loss and are priced to reflect loss payment.

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Classes of Fidelity Bonds

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are:

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Individual Bonds

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- covers one person as the name suggests

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Scheduled Bonds

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these are offered in 2 versions.a. Named schedule- this lists the actual names of the employees to be bonded.b. Position schedule- this lists the names of the positions of the employees to be bonded ie: cashier

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Blanket Bond

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this covers all employees without exceptions and as a result if a loss occurs, there is no need to identify the dishonest employee. They need only prove that the loss occurred. Blanket bonds are offered in 2 versions:

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Commercial Blanket Bond (CBB)-

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the bonds penalty/limit is the maximum amount applied to any single loss regardless of the number of employees involved.

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Blanket Position Bond (BPP)-

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the bonds penalty or limit applies to each of the employees involved therefore it covers collusion losses.

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E.R.I.S.A Bond

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1. Employee Retiree Income Security Act aka the Pension Reform Act - this requires a fidelity pension bond be maintained for all individuals handling funds and or property belonging to an employee pension or welfare fund.

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The Small Business Administration Surety Bond Program

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1. This provides guarantees on Sureity Bonds for all business unable to obtain them in the voluntary market of contracts of 1 Million or less. (Note: maximum guarantee is 90%)

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Workers Compensation and Employers Liability

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are:

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Elective States

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In these States workers comp benefits are provided at the option of the employer. This does not apply to NY

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Compulsory States

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In these States workers comp benefits must be provided by the employer with some exceptions, this applies to NY.

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Monopolistic States

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In these States workers comp benefits may only be provided by a State Insurance Fund, Insurance companies cannot provide the benefits. This does not apply to NY.

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Dual State

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1. In these States workers comp benefits may be provided by either a State Insurance Fund or by Insurance companies. NY is a Dual State.

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Part 1 of a Workers Comp Policy

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This is the agreement on the part of the insurance company to perform on behalf of the insured all of the obligations of the workers comp law in those states listed in the declarations.

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Part 2 is Employers Liability Section

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- which obligates the insurance company to defend any legal action instituted by an employee.

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Y State Amendatory Endorsement aka: NY limit of Liability Endorsement

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This must be attached to every workers comp policy issued in this State. It removes any limit of liability for Part II for those employees subject to the workers comp law. For those employees not subject to the law the standard limit in the policy is:• $100k BI each accident• $100k by disease each employee• $500k by disease in total

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Maritime

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the constitution of the United States government gives the Federal Government jurisdiction over maritime matters. Therefore, State laws do not apply to injuries or death to maritime workers employed on navigable waters of the US or high seas. These employees are governed by the following:1. General Maritime Law2. The Jones Act (within 12 miles)3. The Death at High Sea Act (12 miles out)4. US Longshoreman’s and Harbor workers Compensation Act

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Premium Computation

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the company charges an authorized rate to an estimated payroll per $100 for each classification of the insured’s operation. (Note: Payroll aka Remuneration)

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Deposit Premium- aka: Initial or Advance Premium

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this is the premium the insured pays at the inception of the policy. The insurance company will audit each policy at expiration or cancellation to verify any earned premium. (Note: there is an expense constant of $200)

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Miscellaneous Payrolls

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are the payrolls for which there are no rates in the payroll they are assigned to the governing class. The governing class is that classification of the insured’s operation other than standard exceptions, which carries the highest payroll on audit.

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The standard exceptions

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are low rated categories such as: clerical, drivers and helpers, outside salesperson, messengers and collectors and executive officers and draftsman.

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Cancellations of a Workman’s Compensation Policy

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the company cancels on a pro rata basis. The insured cancels on a short rate basis. However, the insured would receive a pro rata cancellation if the cancellation unless for example they are retiring from business or have completed the job for which the policy was issued in which event cancelation would be on a pro rata basis.

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Midterm cancellation

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by the company requires 10 days notice plus mailing is given to the workman’s comp board and the insured. Non-renewal cancellations require 30 days notice plus mailing. (Note: the NY State Insurance fund may only cancel for non-payment of premium).