| Q&A of the Week |
Installation Floater or Builders Risk?
A Texas subscriber recently asked the following question:
My question concerns a coverage dispute as to when coverage on an ISO installation floater ceases. In this scenario, a contractor was constructing a structure. They were hired to construct a building for a landowner. They installed 75 percent of the roof trusses to be installed. That evening, high winds damaged the structure. Coverage was denied as those roof trusses were already installed and thus, coverage should be afforded on a builders risk policy at that point. The floater states, "Covered property does not include a. property on your premises unless intended to be installed at any described job site."
Since these roof trusses were no longer intending to be installed (they had in fact been installed), coverage was not afforded. What is your opinion as to when coverage ceases on the installation floater and needs to be covered under a builders risk form?
ANSWER: We agree that the loss would not be covered by the installation form. The ISO Installation Coverage form describes "covered property" as "property situated as specified in the Declarations for installation at a described premises." So, once the property is installed, it is no longer for installation, but is part of the building or structure, which falls under the Builders Risk form. When the property is installed is when the coverage on the installation floater would end. If the other 25 percent of the trusses that were not installed were also damaged, they should be covered by the installation floater. Read More |
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| What's New This Week in FC&S |
Personal Farm Umbrella Program of the American Association of Insurance Services (AAIS)
AAIS developed its farm umbrella program in response to the growing liability exposures that face today's farmowners. These increased exposures result from many different factors. Read More |
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| Litigation Watch |
Unjust Enrichment
The insurer sought a declaration that it did not owe a defense or indemnity to its insured after the insured was sued in a bodily injury claim. The claim was settled before the declaratory action was decided, with the insurer paying $125,000 in the settlement. The insurer eventually prevailed in the declaratory judgment action and now seeks reimbursement for the amount it paid on the insured's behalf. This case is American Western Home Insurance Company v. Donnelly Distribution, 2015 WL 505407. Read More
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| Fraud of the Week |
Workers Compensation Fraud—California
AMOUNT: $24,000
A man who portrayed one of the dancing hamsters for the KIA Souls commercials has been sentenced to ninety days of electronic monitoring, 400 hours of community service, and to pay $24,000 in restitution for receiving disability payments while working as a dancer. 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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