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.

Retiring from Medical Practice Soon?

Risky business if you don’t have “tail insurance.”

Doctors are aging out of the medical field along with the rest of the baby boomer generation. In 2014, one out of every four doctors was over 60. HTTP://www.centerforhealthjournalism.org/2014/03/10 While it sounds wonderful to be able to retire and not have to worry about all the complexities of operating a medical practice, there are insurance risks you must address before exiting the workplace.

Chances are high that you might not have considered retirement at the time you entered into practice and selected your insurance coverage options some thirty plus years ago.

Most doctors are keenly aware of the necessity for professional liability insurance a/k/a medical malpractice insurance while in active practice but they may not be as knowledgeable about their options upon retirement or becoming disabled and leaving the practice of medicine altogether. One might think General liability insurance will suffice after retirement, which is not correct. General liability insurance does not cover any part of medical malpractice.

So, what is the most important type of insurance you need to address upon retirement?

The primary insurance needed for retiring Doctors is Tail Insurance.

General Liability Class Codes Professional Liability Tail Insurance

In the past, tail coverage was an extended reporting period endorsement, offered by a physician’s current malpractice insurance carrier. Simply put, this insurance is basically a continuation of your medical malpractice insurance upon leaving employment, reaching retirement, or becoming disabled. Retirement situations are the focus herein so we are narrowing the endorsement terminology to a non-practicing extended reporting period endorsement. Some insurance carriers historically provided free tail coverage upon retirement if the Doctor had 5 previous years of existing coverage with their company; or you could purchase a policy through your existing carrier only. The same factors generally applied if you become disabled.

Tail insurance differs from medical malpractice which only provides coverage for the period of time the policy was in effect and is a Claims Made policy. Tail coverage is for prior acts which occurred during the time http://www.irmi.com/claimsmade the original malpractice policy was in effect, but a claim is not filed until after the cancellation of the original policy. So it covers acts of negligence which occurred while in practice, but the claim is made after the physician retires. This assumes that the Doctor had an active malpractice policy in place before retirement that covered claims within the original policy dates.

The insurance industry has evolved dramatically in this area and now offers alternatives to obtaining tail coverage either directly from your former professional liability insurance carrier or a different carrier of your choosing through the use of a Stand Alone Tail Policy.

So what do you need to do to ensure you’re protected in your golden years?

First, you want to examine any agreement or contract that you entered into as part of your practice, or with any hospital where you were on staff, which addresses what type of insurance, if any you are required to carry upon retirement or leaving the hospital staff, the aggregate limits requirement in the contract and the cost of the premiums. You also should see a clause in the agreement which identifies whether you are required to pay the cost directly or the group is required to continue the payment, if applicable.

Then you want to look at your existing individual malpractice insurance or group malpractice policy to see if it has a provision for the free endorsement after retirement, and when it would become effective which is generally after 5 years of coverage.

Once you know if you have to provide the cost of the tail insurance and what the policy limits need to be you can go forward and decide whether continuing with your present carrier is your best option.

If you are a sole practitioner then the decision making is a little easier. You will still need to determine your contractual obligations with any hospital you are on staff with. If you don’t have tail insurance you need to obtain it before retiring. If your original malpractice expires you will have a gap in coverage. Contact your current malpractice carrier and see if they provide a free endorsement and determine what the applicable date is that the free endorsement would become effective. If you are not eligible for a free endorsement with your present carrier, determine whether coverage is available through your carrier and what your options are as to cost and amount of coverage.

If the price is exorbitant, which it may be, you can comparison shop different insurance companies for a stand-alone tail policy. This type of policy can cover different lengths of time for the extension period ranging from 1 year to indefinite. Since medical malpractice claims may be filed many years later it is a prudent idea to consult an attorney to determine the statute of limitations in the area where you practiced. An Indefinite extension would be the optimal time length as you would be covered if a claim is ever filed, but that option may not be affordable. Some insurance carriers are offering financing on this type of insurance.

An independent insurance agency or broker is able to shop numerous carriers and find the perfect fit at the right price for you. So don’t end up holding a tiger by the tail. Take action to protect your assets.

Pest Control Companies: Beware of the mosquito

What liability risks are out there and what you can do to manage them

Pest control is a vast multi-faceted and highly regulated global business offering various types of services to control pests of all types to numerous industries and the public Pest control business liability classification codes are:

Pest Control

Pest control involves eradication or abatement of all types of pests, insects and rodents but none more evasive and resilient than the mosquito. In the United States Pest control companies often provide residential pest control options for mosquitoes and other insects both to individual homeowner’s, apartment complexes and other types of residential buildings as well as temporary lodging such as resorts and hotels Municipalities, townships, counties, water districts, states, countries and community based programs also undertake the eradication of mosquitoes, especially when there is a disease outbreak. Commercial pest control companies often subcontract with these entities to perform the actual pesticide application, monitor the mosquito population, train applicators and monitor certifications and licensure of employees/applicators.

The reason so much attention is given to eliminating this one insect; is the danger to human life, along with wildlife, associated with Vector borne diseases transmitted by mosquitoes after extrinsic incubation, e.g. Malaria, Yellow fever, West Nile Virus, Chikungunya and Dengue fever. The National Resources Defense Council indicates that these diseases are increasing as the insect population grows, due to the warming of the climate, along with the shifting rain and weather patterns. As a result, Additionally, another growing threat from the mosquito is on the horizon.

As the 2016 Olympics get under way the public, the business sector, medical professionals, human health organizations, environmental and government agencies and the pest control industry are warily eyeing the event as the Journal of America Medical Association states the potential for a pandemic is explosive due to the presence of the Zika virus, which is an emerging illness borne by mosquitoes, in the Olympics host county of Brazil.

Some states in the United State have already experienced cases of Zika. Most notably there have been cases reported in 15 counties in Florida and as consequence new laws have been enacted which impose even greater regulation for pest control company applicators. Other states as well may follow suit as the disease spreads.

In this case, the infected female Aedes genus mosquito is the carrier Zika Vector Control for the Urban Pest Management Industry). This particular mosquito type is an invasive species which is already established in America and by its nature continues to expand its range. It carries Zika virus, dengue fever and a possible link to microcephaly in infants. Additionally, is has been recently confirmed that an infected human male can sexually transmit the Zika virus to a female similar to AIDS while the virus is active. Zika is also possibly linked to severe brain damage and Gullian Barre’Syndrome.

A debate now rages among the scientific community as to whether or not microcephaly is associated with the Zika virus; or its actual root cause is a larvacide (growth inhibitor) called “pyriproxyfen” used for mosquito control by targeting the larval stage while in the water source. In Brazil, it was allegedly injected into by the Brazilian Health Ministry into the drinking water tanks to combat the mosquito population. See: “Chemical Larvacide, not Zika, true cause of Brazil’s Microcephaly Outbreak.” This larvacide is approved in the US by the EPA and worldwide by WHO

Either way the pest control industry will be squarely in the middle of the debate on how to effectively reduce the mosquito population using Integrated Pest Management with Biological Based Technology and still prevent harm to humans in response to the concerns raised about this disease in the National Pest Management Association Industry wide alert issued in January, 2016. Irregardless of which cause is the culprit it will have far reaching implications for insurance coverage for the the pest control industry.

Liability claims may rise in the form of general liability, professional liability and products liability as the number of victim’s increases and public alarm rises. Additionally, many local government mosquito abatement programs are being dropped by insurance carriers at a time when they are sorely General liability covers bodily injury due to your negligence (which is a failure to exercise reasonable care). Bodily injury means injury, sickness, disease or death. It is quite conceivable that a client that acquired Zika or other vector borne diseases could bring a negligence suit against a Pest control company, who failed to provide effective mosquito control for their residence, barring another possible source of contamination, dies or is injured, or their unborn child is borne with birth defects, caused by the disease or from the products used to abate this pest.

The Supreme Court of California widened the legal playing field when it held that pesticide application may not be excluded summarily under the pollution exclusions clause of an insurance policy without a thorough analysis of the facts and can be ordinary negligence performed in the general course of doing business in John R. MacKinnon vs. Truck Insurance Exchange (2003). As a result varying coverage has evolved for pest control companies.

These coverage may have different names but can be added as a supplement or rider to most general liability and business owner’s packages or can be obtained as special risk insurance specific to the industry including but not limited to mosquito abatement, fumigation, exterminator, pollution care custody and control, Crisis management endorsement and last but not least chemical liability. With the advent of new diseases and chemical compounds to address them Pest control companies must become or remain pro active to combat the negative impact caused by just one list insect.

The key factor is to review your company’s general liability policy or business owner’s package and be sure the wording covers pesticide application and mosquito control in the ordinary course of business and to make sure that specifically named diseases and/or vector borne illnesses are not excluded; or if excluded, purchase a rider, a supplement or special risk insurance policy. Also consider raising the aggregate amount on your general liability. You also need to make sure that if you are utilizing Biology Based Technology and larvae based pesticides (even if approved by the EPA) used on or near a water sources are covered, and obtain specific coverage and products liability for those products where there is either a known or potential risk for those pesticides and chemical degradation residue even if the product is approved for use under the Federal Insecticide Fungicide and Rodenticide Act and the EPA.

Products liability is necessary if you are selling a product or dispersing it into commerce. Professional liability is necessary if you are recommending products for use as part of your business or selling them to clients separately. It would be fiscally prudent to have liability for any known or emerging vector borne disease spelled out, if obtainable; but you primarily want to make sure they are not excluded under your policy.

If it is proven, that the chemical pyriproxyfen used in larvae applications is the cause of microcephaly, rather than the Zika virus, then there is sure to be tort cases similar to those brought regarding the Thalidomide tragedy. (Disturbingly, Monsanto is either the parent company or a partner with Sumitomo which makes this chemical. Monsanto is the maker of Agent Orange, 24-D and Roundup). If you are recommending the use of larvae applications, and use or sell this particular chemical or any type of application that causes an environmental risk due to the degradation of chemicals in your pest control business it is vital that you have environmental coverage as well.

As the world population rises and various new diseases emerge and new chemical compounds and pesticides are developed to eliminate the pests and thus combat the diseases the risk increase proportionally for a pest control company. Excellent comprehensive insurance packages are your best protection.

Business Liability: Artisan Contractors

SIC Business Insurance Codes:

7342 Disinfecting and Pest Control services
2879 Pesticides and Chemicals-Not classified Elsewhere

NAICS Liability Classifications:

561710 Exterminating and Pest Control Services
325320 Pesticide and Agricultural Manufacturing

Business ISO General Liability:

Code 43860 Fumigators
Code 43470 Pest Control Services

Tree House Builders Insurance: What type of insurance do you need?

Treehouses: Where Dreams come true for the home owner if the builder can withstand the force of the wind through the trees

Treehouses have existed in many areas of the world for thousands of years. Now treehouse building in America is going through a renaissance period. Many famous people in America have had treehouses built for them, including George Lucas (both for Star Wars and personally), John Lennon and Florida Georgia Line to name but a few. This surge in interest is partially due to the popularity of movies such as Peter Pan and Swiss Family Robinson, and TV programs featuring deluxe treehouses designed to meet the homeowners desires for example “Treehouse Masters”: which is shown on Animal Planet featuring Pete Nelson. There are many other fabulous treehouse builders, as well as a proliferation of books, plans and photos of these whimsical and awe inspiring dwellings on the World Wide Web. Also home buying clientele is interested in smaller less expensive dwellings in order to have a more active lifestyle which is a need that can be met by living in a tree house.

So with the public’s fascination for these dwellings rising, if you’re in the residential construction industry you may have thought of going out on a limb and adding treehouse building to your services.

No matter what your reason is for building treehouses you need to consider two primary intertwining factors, to wit: the building process and insurance. Building a residential treehouse is basically the same process as building a home as a general contractor with a need for specialized subcontractors and tradesman. You can read more about general contractors insurance needs here.

(Building commercially rented treehouses is beyond the scope of this blog article).

First question is how to proceed. If you are building a standard residence you would start with a design plan, blue prints, plot or site plans and plans for electrical, plumbing and HVAC systems, etc. All of these plans would have to comply with building codes applicable to the specific location. Surprisingly, some states and local bodies do not address treehouses in their building codes or use nonspecific guidelines to determine if building permits are required. This leaves the contractor guessing about vital information. Checking with the local building and zoning authority is a key factor. Just making a phone call is not sufficient, Take your plans to the board and if they indicate no permit is required, you need it in writing.

There are resources to turn to as well. There are numerous articles regarding the do it yourself aspect of building a treehouse structure. There are many fabulous photos of existing tree house structures ranging from simple children’s forts to breathtaking structures. There are scores of books written by people who have built treehouses around the world as well as standard plans and custom designs. Networking with these treehouse professionals could be a valuable resource. One organization, the International Tree House Association, is seeking to provide guidance to tree house professionals and unite to support both enthusiasts and builders.

There is also a dearth of information regarding what insurance you need to protect your business from liability. Most carriers do not have prepackaged treehouse builders insurance. However, you can certainly build a BOP (Business Owner’s Policy) with your agent or broker. You will need general liability insurance required by law along with every type of coverage that a standard residential contractor would require. There is no general liability class code specifically for treehouse builders so you can generally assume your code classification would fall under a general residential contractor for general liability purposes. You will also need to list Class Codes for every task you will perform. Code Classifications 1521 and 1751 under construction, maybe applicable. Since there is no specific classification you absolutely need to articulate within the policy that your primary occupation is building tree houses and list every task you will be doing, even if it has a separate class code, to ensure no exclusions. For instance, if you are doing Tree Removal and construction site cleanup you will need to specifically list this as a task you are to perform. This may be already covered under the policy definitions as a general residential contractor. If not, you may purchase a rider as this is a separate class code (91629) under general liability.

You also need to consider that a residence that is under construction can be considered an attractive nuisance if there is an enticement factor (presumably a tree house would be far more enticing to a child than a standard house). So you need to know if your general liability covers attractive nuisance or excludes it, and whether you need a separate rider which covers liability for attractive nuisance during the ongoing construction.

You would need to ask narrower questions pertaining to each and every build job and review your insurance coverage with your agent or broker to determine if they can all be covered in one policy, or one BOP or if you need separate riders for each build on a job by job basis.

Is the structure habitable? This depends on whether you are putting in utility services and what utilities you are putting in such as electricity, water, plumbing and sewer for purposes of living either permanently or temporarily in the treehouse. If the answer is yes then it is habitable and you are presumably, acting as a residential general contractor regardless of whether you perform the service or subcontract out the installation of such services. If you are building a simple kids fort without utilities it would probably not be habitable.

The following questions would determine your need for professional liability coverage in regard to each task you might be performing.

What are the weight/ load bearing requirements to support the tree house? Are you acting as an engineer and making recommendations or have you hired an engineer to consult and sign off the certification? If you are recommending all the specs you will need professional liability for your business or your engineer will in the alternative. One engineer who does certifications for tree houses is Bill Taha, Ph.D. Precision structural Engineering Inc.
Who is designing the tree house or making recommendations? Have you hired a tree house designer or architect? If you are designing any part of the structure you need professional liability or your designer needs to carry professional liability and supply you with a certificate of insurance.
Who is selecting the tree or trees where the tree house will be located? If you are not an arborist you would be wise to hire one as of one of the most critical aspects of building a tree house is to select a healthy and hearty tree that can sustain the weight of the structure with minimal damage to the tree. If not you need professional liability for Arborist
What type of device are you using to anchor and support the treehouse? Does it’s use require products liability insurance? Did the engineer or you select the attachment device? Will you need professional liability?