When a business uses insurance and/or loss control to protect itself from losses, the focus is usually upon outside forces. In other words, the assumption is that some event or some party not directly connected with the business will be the source of a loss. While this assumption is legitimate in many instances, it is a very limited and dangerous assumption.
Insurance is so much easier when one understands how protection applies. However, mobile equipment is a class of property that complicates things because the line is blurred between it and what are considered to be vehicles. The distinction is important because of how protection is handled. When a loss involves mobile equipment, questions arise whether coverage exists under a general liability or some form of commercial auto policy.
Building and Construction work is a tough, expensive business. It is critically important to have the right type and quantity of equipment available in order to complete projects. This means that medium and larger contractors have a lot of money invested in their machinery. Unfortunately, contractors face a problem that appears to be inherent…equipment theft. The most popular theft targets are:
General contractors (GCs) are the playmakers for any significant construction project, taking responsibility for all key operations such as construction assignments, job site supervision, and activity coordination. Typically, GCs have their own construction specialty (example: malls, restaurants, office buildings, stadiums, arenas, parks, etc.). GCs are often larger concerns with a tremendous amount of expertise in their area of specialty. The level of experience is critical since it permits a construction project to be led efficiently and more successfully.
No business wants to face an event that could seriously curtail or even shut down operations. Unfortunately, few businesses have plans to deal with such a disaster. It is not unusual for a business to overlook creating disaster plans. Further, companies that do have disaster or continuity plans in place often fail to update their plans on a regular basis. Besides having an update plan, it is also important to test their plans.
If you examine the insurance policy covering your business, you’ll see an insurance limit. For instance:
Acme General Manufacturing
Artisan Contractors are smaller operations that work in a variety of settings. They may be involved on large construction projects under the direction of general contractors, operate in smaller residential projects, specialize in installations or work on renovation or remodeling projects.
Businesses are vulnerable to having their existence threatened by a multitude of problems. In many instances, a company buys insurance to handle different aspects of their operations such as General Liability, Business Auto, Workers Compensation, Commercial Property, Professional Liability, Commercial Umbrella and other coverages. However, insurance is not always the most appropriate method for managing a particular source of loss. Insurance is just one form of risk management and companies increasingly use alternatives.
A liability policy has to restrict its coverage to handling the type of losses for which it was created and a commercial liability umbrella (CLU) is no exception. It contains an important provision that excludes losses involving contractual liability. In other words, an umbrella ignores losses created by an agreement an insured makes with other parties. Without this exclusion a CLU’s coverage would be expanded far beyond what an insurer intended.
Exterior Insulation and Finish Systems (EIFS) refers to any material that is used and applied as a protective (insular) exterior coating to any building or structure. Items that qualify as EIFS include the insulating/protective material as well as the adhesives, coatings, fasteners, finishing materials (such as sealants) that are accessories or components of the foundation insulating materials.