Street & Road Contractor – Exposure Identification & Expanded Insurance Program
Contractor specializing in street and road construction and sand mining on company-owned land.
The TMG client depends on its two sand dredges to produce road paving materials and sand to sell to other contractors as part of their revenue streams. The two dredges were listed on an equipment schedule, which included construction equipment, the dredges and two workboats used to service the dredges as well as to transport workers and others to the dredges. The insured purchased an Inland Marine Policy to cover the dredges and other construction equipment for damage or loss.
TMG identified that the existing Contractors Equipment Policy for the client had several exclusions that could create uninsured loss. First, the Contractors Equipment policy excluded watercraft under Property Not Covered. In the Perils Insured section, the policy also excluded property while waterborne. It also did not provide coverage for any consequential loss of income arising from loss or damage to equipment. Finally, the Contractors Equipment Policy provided a modest limit for debris removal.
In TMG’s analysis, we also reviewed coverage for Liability Claims that could occur if, for example, an inspector was injured or drowned while aboard the dredges. The Commercial General Liability Policy issued for the client had no modification to address the exposure and no separate Protection and Indemnity Policy was written to address the exposure of owned watercraft.
TMG resolved the issues by:
- Revising the Inland Marine Policy to address the insured’s marine exposures by deleting the exclusions subject to a satisfactory sublimit(s)
- Providing photographs of the dredges and educating the insurers on their integral role in the insured’s operations
- Deleting the Watercraft Exclusions in the CGL and attaching the “Boats” Endorsement and an In-Rem endorsement to address the peculiarities of Maritime Law
- Ensuring that the Workers Compensation Policy had the requisite Maritime Liability Coverage and conveyed all to the umbrella carrier who followed the underlying coverage grants where applicable
By addressing these exposures, TMG accomplished the following:
- Eliminated a significant uncovered exposure to loss
- Educated the underwriters on a peculiar exposure to loss that was integral to the clients operations and interests
- Improved coverage for the client by extending each potentially affected policy to include amendments addressing this part of their operations
- Provided reassurance to the client with the knowledge that the dredges that had tremendous personal significance were treated as integral to their operations