| Q&A of the Week |
Wind-driven Rain over Period of Time
A Texas subscriber recently asked the following question:
We have an HO 00 03 05 11 with endorsement HO 32 32 06 12, which states that constant or repeated discharge, seepage, or leakage of water is excluded. This paragraph replaces a paragraph that pertained to plumbing. Repeated wind-driven rain caused hidden damage, namely rot, and water damage to insulation that could not be seen. Would wind driven rain be excluded if it occurred over an eight-year period but the insured could not see the damage? Part of the original causation may have been due to improper chimney flashing.
ANSWER: While there is an exception for mold hidden behind walls, that exception applies only when the water is caused by a plumbing, heating, air conditioning system, sprinkler system, or household appliance, or a storm drain or water, steam/sewer pipes off the premises. The endorsement removes that and in its place excludes water caused by repeated seepage or leakage. Wind-driven rain really is not repeated leakage or seepage, it is forced in by the wind. Wind-driven rain is excluded under the water exclusion. There is no coverage for this loss. Read More |
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| What's New This Week in FC&S |
Information Security Protection Endorsement
The Insurance Services Office (ISO) introduced optional coverage for cyber and data breach liability for the Businessowners program with the Information Security Protection Endorsement, BP 15 07 03 15. Read More |
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| Litigation Watch |
Additional Insured Coverage for General Contractor under CGL Form
The subcontractor's commercial general liability insurer brought an action for declaratory relief against the general contractor, claiming that the insurer did not owe the general contractor a duty to defend as an additional insured in a construction negligence lawsuit. This case is West Bend Mutual Insurance Company v. DJW-Ridgeway Building Consultants, 2015 IL App (2dŕ 140441.
In April 2008, delaTorre was injured while working on the construction of a commercial building. The developer of the project had hired Ridgeway as the general contractor and Ridgeway in turn hired Jason the Mason as the masonry subcontractor. After delaTorre was injured, he sued Ridgeway and Jason the Mason for negligence. Ridgeway tendered the defense of the action to West Bend on the theory that Ridgeway was an additional insured on a liability policy that Jason the Mason held with West Bend.
When West Bend filed a declaratory judgment action seeking a ruling that it had no duty to defend Ridgeway, the circuit court ruled in favor of Ridgeway and this appeal followed. Read More
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| Fraud of the Week |
Workers Compensation Fraud—California
AMOUNT: $144,672 in premiums and $110,462 in payroll taxes
A pair of siblings pleaded no contest to charges of workers compensation fraud and tax evasion. Between July 2010 and July 2013 they underreported the number of employees and payroll in their business in order to avoid premiums and taxes. Read More
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| FC&S Ask the Experts |
Did you realize that the Q&A section of FC&S is made up of questions submitted by subscribers like you?
Paid subscribers to FC&S Online or print FC&S Bulletins are invited to submit insurance coverage questions to the editors. We'll provide a personalized opinion within five business days. (We'll let you know if it will be longer than that. Sometimes we have to gather research or other supporting materials).
Who knows? Your question may be featured (anonymously) in the online Q&A of the Week or as an FC&S update.
Submit your coverage interpretation question right to the editors of FC&S for quick and reliable information. Ask our expert staff a question by clicking here. |
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