Concrete Contractors and Silica:

The field of Concrete Construction is extremely complex. This type of construction is subject to the ASTM International Concrete and Construction Standards (The American Section of the International Association for Testing Materials) as well as the American Concrete Institute Standards for Design and Construction.

Each build differs with the type of cement, sand and aggregates used to mix the concrete. The contractor must consider the moisture content, the strength of the mixture, the chemical reaction abrasion test result, and numerous other factors which go into planning a build. One of those factors is the use of silica in the process of making concrete and removal of silica. This mineral is about to make the job even more complex and may affect the bottom line due to increased need and costs for insurance coverage which shields you from liability for it’s use.

All concrete contractors need commercial insurance including commercial general liability and worker’s compensation which are required by law in most states. It is important to remember that general liability does not cover all insurance needs. You will also need Commercial Property, Commercial Auto, Inland Marine for tools and equipment and/ or Goods in Transit and Installation.

Additional recommendations not specific to the installation of concrete, would be Employee Dishonesty, Employee Benefits Liability, Employee Related Practices, Loss of Business Income with Extra Expense, Stop Gap Liability, Umbrella Insurance and Professional Liability for design and installation. You also need Heavy Equipment Insurance if your commercial auto does not cover large vehicles such as a cement mixer truck, dump trucks and other heavy equipment you use.

Specific Industry related recommended insurances would include Contractors E&O, (This is not the same as Professional Liability insurance) E&O covers you when you make a mistake and are negligent during the building process. Along with E&O you need a custom combination of the three types of insurance below to protect your business from environmental threats.

Products Liability
Environmental Impairment Liability
Pollution Control

The need for these insurance types has come about with the rise in litigation surrounding the construction industry as a whole and regulations imposed for each specific industry in the field of construction So you may need all of these separately or combined in a BOP depending on what your carrier offers.

Due to health concerns for workers and the public, OSHA recently adopted new rules in regard to airborne (respirable) silica. Silica is one of the varying components contained within the sand, rock and the cement used in the concrete mixture by contractors. This rule will significantly impact Concrete Contractors. Crystalline silica (SIo2) is the type used to make concrete as opposed to amorphous silica. All of the 5 types of crystalline silica are listed as known occupational carcinogens by the CDC. Crystalline silica is hazardous when it is used in construction processes such as blasting, cutting, chipping, drilling and grinding which make the silica “respirable”. It works much like asbestos which is not hazardous unless disturbed, and then the substance becomes friable. When silica is disturbed by construction processes it becomes “respirable” and workers breathe silica in and it becomes hazardous and can cause Silicosis and many severe lung related diseases which can be fatal in addition to cancer.

The Insurance and Risk Management Institute (IRMI) has predicted that the litigation surrounding silica will rise and result in increased environmental litigation much like the issues surrounding toxic mold did and points out that as Silica is a known carcinogen while mold is not. Aside from IRMI’s prediction silica seems to be more akin to asbestos than mold in some ways. According to the Department of Labor Construction Workers as a whole have an anticipated death rate of 1.82 as opposed to metal mining where the rate is the highest a 69.51%. But that figure could be categorically higher for concrete workers ( the study was not broken down to examine different types of construction workers) as their exposure to respirable silica is frequent, due to contact with the components used to make concrete and resulting concrete dust, while it is being mixed, installed, poured, leveled, troweled edged, brushed finished and cut to specifications. Workers are also exposed to the dust during the removal of old concrete from a construction or demolition site or during remodeling.

As pointed out by IRMI, the growing numbers of silica litigation could cause an exclusion to be carved out by insurance carriers for silica just as one was created in regard to asbestos. So look for an exclusion specifically for silica in your general liability policy to become a reality in the near future throughout the construction industry but particularly in regard to concrete contractors and workers. Additionally insurance carriers could deny coverage based on the total pollution exclusion if a court finds that silica is a pollutant. It is very likely that silica would be considered a toxin.

Despite these issues, it does not mean that liability coverage will not be available if silica is used during the construction project. It means:

Concrete contractor will need to carefully review their existing policies and question your agent whether coverage for silica exposure is specifically excluded or there is a pollutant exclusion. If so,
Concrete contractors will have to purchase an endorsement, rider or supplement that covers silica either as an environmental hazard or a pollutant and adds coverage in addition to any exclusion in their existing CGL policy; or purchase a new BOP designed to cover environmental pollution and pollutant liability
Insurance carriers will want safety plans that comply with specific OSHA regulations and the new silica rule to prevent silica exposure through the use of safety equipment and limiting time of exposure to be part of your everyday operations.
Expect higher workers compensation premiums as awareness arises and workers are diagnosed with silicosis or other related diseases.
Compliance with OSHA regulations to prevent or minimize exposure will be critical and will hopefully reduce the amount of your premiums.
Products liability will be necessary because the concrete mix you are making is actually a product you made or “manufactured” and you would have liability for it; if it is harmful to the public. You also have liability during the demolition and removal process for old concrete that you encounter as it will become respirable at that point: and you will have liability for any other toxins uncovered during the removal. If you purchase the concrete from an outside source, you may also still have some liability for using and installing it and recommending it to the client just as asbestos manufactures and installers were liable.

CNA Insurance offers a Subcontractors Errors and Omissions Policy with Pollution Liability which is endorsed by the America Society of Concrete Contractors. Their Pollution Liability Coverage includes asbestos, mold and respirable dust or Silica. Travelers also offer Contractor’s Edge policies. Many other carriers have policies that you can purchase additional supplements and endorsements for which can provide for coverage of these hazards for silica and/or other toxins which have exclusion in your CGL policy.

What insurance does your technology business need?

Tech E&O insurance, cyber security/ data breach insurance, Electronic Data Processing Insurance or Digital Asset Insurance: Which insurance will meet all the needs of your technology business?

This article assumes that a technology company will normally already have basic commercial general liability insurance coverage and business property insurance or a business owner’s package with or without excess or umbrella insurance. These fundamental types of commercial insurance, while critically necessary, do not provide protection for everything due to exclusions contained in the policy and/or terminology and verbiage used in the insurance contract. More than one type of insurance which is essential for tech companies are still lacking. For instance, Commercial General Liability sometimes covers damages for errors and omissions due to the failure of a product IF you have a tangible property loss, but most times it does not as there is no tangible property loss. Another example is Umbrella insurance while desirable, often excludes any E&O coverage totally. You still want to have an umbrella which adds higher limits of coverage to other types of insurance your company carries. The real answer to which insurance will meet all of your tech companies needs is most likely “none of the above” but insurance policies can be combined to give you the maximum coverage possible.

So the tech company may need just one additional policy, or several more types of or stand-alone insurance policies to address risks which are foreseeable in the tech industry. The two most well know types are cyber insurance/ data breach and professional liability or E&O Insurance. Other types you may need would include are Electronic Data Processing and/or Digital Asset Insurance. New products are emerging to meet the needs of technology and others may be added in the near future. Technology insurance is not yet standardized. Adding one or more of the types of coverage which are available now will add layers of protection to your existing insurance and can provide full protection for every conceivable risk when they are fitted together like pieces of a puzzle to solve the insurance quandary faced by your company specifically.

Small to midsize technology company’s face rapidly evolving roles and ever changing work climates on a routine basis. In fact, it is very difficult to find a consensus on a singular definition for a “tech company”.

Insurance coverage for the technology industry is best selected by the role or the function of the company. There are tremendous variances in “tech” companies and how they operate and what they do. If you are a technology company you could be a computer information technology company, a data storage company, a data management technology company or a computer technology company which manufactures computers or designs computer systems, or writes computer codes for certain industries; or builds operating systems for all types of products including tech gadget or apps. The company could even provide all of these services. Any and all of the companies described above, along with hundreds of others, can be classified as a technology company. But the functions performed by the company are the key to knowing what actions you need to have insured.

The demands for diverse types of technology fosters the vast species of tech companies and leads to varying claims against tech companies which usually arise due to either the failure of the product provided by, or the services performed by the “technology “company, or both. So the owner must determine what specific coverage is tailored to protect the company’s products or performance from liability by thoroughly examining what insurance is available for this industry and what exactly does the insurance policy cover.

In most businesses or professions, Professional Liability or E&O (Errors and Omissions) is a critical need. Technology is no exception. In the technology vernacular this is most frequently referred to as a Tech E&O policy. Let’s say that your tech company “Best Tech Company Ever” designed a computer system for a client and selected ,but did not manufacture the components, and now manages and stores the data produced from the computer system and analyzes the raw data and provides analytic data to the client. Undoubtedly, Best Ever Tech Company needs to be fully covered for errors and omissions on the part of employees and owners. Tech E & O provides wide coverage for a host of services including data hosting, data processing, computer systems analysis, network management services and software programming. “5 Insurance Issues to consider in Tech Transactions,” http://blogs.orrick.com/insurance/authorD.Teshima

The BETC Company needs errors and omissions insurance with coverage for computer systems design, computer analytics, data management and data storage coverage. Tech E& O would cover all of these provisions as negligent acts. However, E&O does not include intentional acts or torts so you still need another layer of protection.

BETC doesn’t need E&O coverage for manufacturing the system or the components, (products liability) but does need coverage for design of the computer system if it does not work as anticipated, either due to the parts or software not being compatible or other inherent flaws. The company could possibly need coverage for loss to the client’s income if the computer design of the new system caused the product not to work in the intended fashion. BETC also needs to be insured for its advice and recommendations on what components to purchase to make the system run efficiently, coverage for the result of their data analysis, if incorrect, or the system is unable to perform comprehensive analysis, and coverage for the data being stored for the client regardless of the methodology used for storage if there is a negligent error which causes a loss of data.

Tech errors and omissions should be sufficient for most employees but the owner needs to investigate whether the policy needs additional cover age for Officers and Directors Errors and Omissions who may not be involved in the technology side of the business. This could be added by an endorsement or a rider to the BOP or Tech errors and Omissions.

Cyber Security is also advised for BETC. Cyber security differs from E&O. Cyber security covers network security failure and breach of data which are not the result of an employee’s negligent error such as an accidental error, but rather a direct act or attack usually by a hacker which can be accompanied by a demand for ransom. Cyber security also covers an employee’s actions if intentional or fraudulent, rather than an error. Cyber security is very complex and there are various ways to structure a policy. ISO has not yet issued a standard form for use. There are numerous questions to consider and the owner should conduct a thorough risk analysis with his agent before deciding upon cyber security insurance policy. Some of these are:

Does it cover both 3rd party liabilities for your client’s breach of their privacy and first party coverage for you the insured?
Does the triggering event language limit to an intentional breach or is it triggered by any failure to protect data by the insured which is preferable
Is there coverage if the insured fails to disclose the breach
What event triggers the duty to defend? A liberal approach would be if a request for information is the trigger while the most restrictive is the actual filing of a law suit as trigger. You would want to have the earliest trigger possible
Are civil fines and penalties covered
Are notification costs covered? There is a wide variance in what cost are covered which varies according to each individual state. Does the coverage limit you to using vendors for notification which are picked by the insurance carrier?
Most importantly in some case does it cover data loss and the cost to regain the data?
Another major factor for consideration is does the policy exclude acts of terrorism or war. If excluded then be very wary and make sure that the policy clearly states that extortion, using ransom-ware or doxware and/or security breaches are not excluded under this clause.

As each technology company is unique the above list is representative only and not exhaustive. For a more in depth discussion see: “Analyzing Cyber Risk Coverage, http://http;//riskandinsurance.com/author/steve-raptis

In the past, coverage for computer equipment was based on business property insurance, however it often excluded losses caused by computer viruses or hacking which newer Cyber insurance policies now cover. Separate and apart from cyber security issues, Electronic Data Processing Insurance developed simultaneously and was designed to specifically address computer operations. EDP insurance covers computer equipment, Media Data and Data Recovery. It is meant to cover break down of the equipment and resulting losses from inability to process the data. Another method is to add an enhanced super stretch such as those offered by the Hartford to a BOP, which can cover computer hardware and software as well as damages to the equipment from changes in temperature. A change in temperature can be a major issue when large heat producing computers become damaged after a loss of power or equipment failure which then causes the heat to rise further: or can cause a sprinkler system to activate ruining the equipment.

There is also Digital Asset Insurance policies which are not as widely known. Historically, digital loss was covered by a clause in an existing cyber security policy which assigned a very low indemnity value to the digital assets and generally covered damages from natural disasters only. New solutions have been developed to go hand in glove with cyber security, or property insurance. The value of the lost digital asset can be set at the time coverage is bound and the asset can be insured for up to millions of dollars. The value is set by the underwriter and assigned an indemnity value based on actual value or the data which is lost. It also features insurer approved back up and data management and can be purchased even whether the data is on the premises in a data server center or a cloud applications

Technology companies are at high risk of loss due to proliferation of new technologies and the correlating data and information produced. These businesses are changing the insurance world’s appetite for risk, steering away from natural disasters, and focusing on processes guided by humans and products developed by humans with the aid of data and data processing. In short technology companies are entering uncharted ground and will blaze a new navigational chart for insurance providers and carrier as they proceed along their course. Careful insurance planning is critical to the company’s health so they are not blown off their course due to loss of data from error, theft, mistake or any other event.

Insurance needs for Drones in the workplace.

Thinking of Using Drones to Perform Home Inspections? What insurance options do you have?

Most home inspectors are familiar with and carry General Liability, Commercial Property and E&O or Professional Liability Insurance to protect their business and understand the risks they run if not protected by these critically necessary types of insurance. The American Society of Home Inspectors (ASHI) recommends these coverages at a minimum. Until recently drones may not have been used as tools at all in the home inspection field. Drones are probably not covered on your commercial general liability policy or business owner’s package. Drones are currently being used for fun hobbies such as photography; throughout different industries such as in science, surveillance, and logistics and, specifically including property surveying and home inspections. So drones are gaining popularity with business owners. The FAA now requires drone insurance to meet Section 333 exemption for a drone that is used commercially.

However, drone insurance coverage nuances are just being created for the insurance industry. International Organization for Standardization (ISO) has developed different endorsement forms for adding endorsements to Commercial General Liability, Commercial Liability, Commercial Umbrella Excess, Commercial Inland Marine, Commercial Property and Capital Assets together with business interruption exposure due to loss of use of a drone. Information about all of the ISO forms for drone and white papers on drone are available. See ISO’s Emerging Issues Portal (http://www.iso.org)

Any carrier that offers drone insurance can use these ISO endorsements by adding them to your existing coverage. However, of every carrier underwrites policies for drones due to the cost of replacement, technical differences, and various types of machines availability and standards of safety for operating and FAA requirements being undefined until very recently; and what function (s) the drone will perform.

Disputes over the ethics and morality of the use of drones as weapons may also have historically driven the carrier’s decision not to provide coverage so as not to tarnish the public image of the insurance company. However, as more and more companies use these as tools in commerce; the public‘s perception may become more favorable. If a distinction is made in ordinary language between domestic drones and weaponized combat drones more frequently, it may aid the acceptance of drones as well.

Home Inspectors obviously want coverage for a domestic drone, while a defense contractor is more likely to request coverage for weaponized drones. Some carriers include Lloyd’s of London ( a specialty carrier) Stonewall Aviation, Global Aerospace, Assurex Global and AIG. Most carriers who serve the aviation industry are very knowledgeable about drones and do offer drone insurance.

But in regard to purchasing commercial drone insurance for a home inspector, you first need to know if you are actually insuring a drone, or is it really technically something else? The terms drone, UAV and UAS are used interchangeably in general business. It behooves you to clearly identify the technical name of the equipment or tool you want coverage for in seeking drone insurance.

Drones are defined as any kind of remotely guided vehicle whether on land, sea or air with the main qualifier being unmanned. Regulations are in progress that would further define what is or is not a drone
UAV’s are defined as unmanned aerial vehicle s that are remotely controlled or guided through pre-programmed software.
UAS’s are defined as unmanned aerial systems.

There are numerous debates about which definition is technically correct. The technical name used by the maker is the most logical term to use for insurance. To be assured of coverage you want to furnish the manufactures Id or serial number similar to a motor vehicle Id no. and to update the policy if new drones are acquired. But most importantly, since you are using the drone commercially, the drone must be registered with the FAA if it weighs more than .55 lbs. and it cannot exceed more than 55 lbs. in weight. If you are not registered with the FAA you can be fined and even imprisoned. Federal Drone Registration Part 107. You must also have a FAA Commercial Remote Pilots License which became effective on 8/29/2016. Your carrier will require copies of the registration and license.

The identity of this particular tool is what is essential so that the insurance covers the repair or replacement cost of that particular item and sufficiently identifies that specific piece of equipment if damage to persons or property occurs while in use.

Next you need to define exactly what the function of the machine is and tasks you are going to be performing with the drone and equally important what liability could result from the tasks you are performing. The most important factor to a carrier boils down to what risks are assumed and what damage can be caused by the use of this tool in your business. Damage could result from crashing the drone along with injury to a person and/ or property if hit by the drone or pieces of it, in the event of an explosion or malfunction.

Home Inspectors use drones mainly to inspect roofs and chimneys because of the height, the necessary angles that need to be examined on steep roofs, and the danger of falling. The primary function of the drone for these inspections is actually aerial photography so you will need a good camera that can be remotely operated while attached or built into the drone and produce high resolution pictures. You may want a dual control model camera where a pilot mans the flying function and the inspector reviews the photos simultaneously for quality and to determine whether different shots or angles are needed. You also want to be sure the camera is covered either separately or as part of the drone insurance. In a UAS the aircraft or drone is the Platform, the Payload is the camera or sensor and the Ground Control Station is the remote pilot and the inspector, or just the inspector if he is also the pilot. You want to ensure you have coverage for all parts. Fortunately, the drone itself has a wide range of price s depending on the model you select starting at approximately $175.00and the camera may actually be the most expensive piece of equipment.

Damage to the property owner may also result if an unsafe defect on the property is not detected as part of the home inspection and later results in a loss. This type of injury is either covered by Error & Omissions or Professional Liability for the home inspector. Some insurance company such as Target Professional Programs offer Home Inspectors Insurance as a specialty insurance endorsed by ASHI that has a combined BOP package with Professional liability and Drone insurance endorsements.

Target’s General Liability insurance can limit coverage to specific types of inspections that you actually perform depending on whether they are residential, commercial, Section 8 or other types. This lowers your cost for premium. They also offer tailored optional insurance coverage, e.g. mold inspection but not termite inspection.

So if drone inspections are in your future business plans, you want to explore your insurance options thoroughly.

Why Inland Marine Insurance can be your best investment in your business!

Attention: Landscapers and Lawnmowers. You need Inland Marine Insurance Coverage.

Get the answers to your inland marine insurance questions for your lawncare or landscaping business at generalliabilityclasscodes.com

Inland Marine Insurance really does not sound like a type of insurance a landscaper or lawnmower would be expected to need; but you absolutely do in order to avoid gaps in your coverage. While the insurance class codes for landscapers and lawnmowers are not identical, common issues face both industries which can be addressed with this type of Insurance. Inland Marine insurance came into being as Ocean Marine Insurance in the very early days of transport across the ocean. This coverage expanded to other water ways such as lakes, rivers, loches canals and channels known as inland waterways used to ship goods and cargo in all kinds of trade. But the term has evolved with the times and can now be used to provide coverage for almost anything that is transported whether it’s over the ocean, inland water ways or over land; which brings us to the two most important reasons for having this type of insurance.

First, clients do not come to your shop to have you landscape their residential or commercial property, or trim their trees. You need to travel to where the work is being performed and bring with you all the equipment and tools you need to do the job and those items must be transported.

Commercial Auto insurance does not cover transportation of tools and mobile equipment while Inland Marine Insurance does. In fact, your commercial auto insurance policy may not cover all the specific type of “vehicles” you are using in your company at all if they are not defined as an automobile while the Inland Waterway Policy can insure moveable equipment and or unusual items used in any industry. So items applicable to landscaping and lawn mowing could include:

Heavy duty pickups, moving or cargo vans, or trailer used to transport tools and equipment.
Heavy equipment, e.g. Backhoes, bobcats, cement mixers, graders, and fork lifts used to perform the job.
Small or miscellaneous equipment and tools

Second, Inland Marine protects your equipment, tools any unusual item and can be designed to fit any and all of your needs if it is properly underwritten to be specific to your industry under the class codes. For instance snow removal can be added if the class code is added as secondary industry and you have a floater specifically for the snow removal equipment. A variety of floaters are available and you can add any type of floater that your insurance carrier provides to your policy that is appropriate for your business. Inland Marine can be included in a business owner’s package or be a stand-alone policy in addition to your general liability and other traditional types of business insurance.

Inland Marine is unique to insurance, in that it can be written as “peril coverage “where only specifically listed items which are attached to the policy are covered; or “all risk” Obviously the premium and deductibles would vary depending on which type you choose and how much coverage you want. The drawback to peril coverage is you must keep your list updated every time you have to replace or purchase a new piece of equipment or a tool, and advise your agent immediately of the change. In other words any item not listed is not covered. The risk of failing to notify your agent timely can be partially addressed with a floater for new items purchased which extends your time to notify your agent but gives you less coverage for that item than if you had notified your agent sooner.

.Landscapers and Lawnmowers will primarily need Mobile Articles & Machinery and Equipment Coverage as a floater which is the type that will pay for damage incurred to the property or theft of the item during transit of the object. Regardless of whether you want a combination BOP or a stand-alone policy you would want to analyze whether you need additional optional “floaters” in your Inland Marine policy. For instance:

Rented Leased or borrowed items floater if you rent machinery or equipment to use for specific jobs.
Computer /printer/hardware/software and business data floater if you take your computer with you to jobs to prepare bids, designs invoices etc.
Loss of revenue incurred due to loss of business data.
Installation floater if you leave machinery, building materials or other items at the job site for the duration of the project.
Bailee’s/customer’s goods floater in the instance where you might have possession of, or are transporting the owner’s property. This could occur in an instance such as the owner has purchased a large feature item, say a fountain, and the landscaper needs you to transport and install the fountain.
Employees tools

Another very crucial floater is Builders Risk a/k/a Course of Construction. This item may not be necessary if you are working with a General Contractor and you are a named insured on their policy. Conversely, it could be highly beneficial if you are not working with a GC. You should thoroughly discuss each aspect of your work with your agent to determine when this floater is necessary, and periodically review whether you need this coverage as your business grows.

So, with a unique combination of floaters designed for you, Inland Marine insurance can be your key to protecting your business equipment, while being transported to and from the job site, throughout the duration of the job and back home to your headquarters again, giving you peace of mind and freeing you to focus on other aspects of your business.