***Important Update***

HARRP coverage agreement 2015

Self Insurance Programs

HARRP members self insure their exposures with reinsurance and excess insurance for limits exceeding $1 million.

The coverage limits are $2 million per occurrence and in the aggregate for auto liability and $2 million per occurrence and in the aggregate for general liability, errors and omissions liability and employment practices liability.

Through the act of self insuring its exposures and purchasing reinsurance, HARRP and its members maintain direct control over the adjustment, defense and settlement of the claims.

HARRP purchases excess property coverage for losses exceeding $2,000,000. For 2013, the limit of such excess property coverage is $45 million above the self insured coverage.

There is no coverage for flood or earthquake damage.

Coverage Comparison

Coverage Commercial Insurance HARRP
Outdoor property $1,000 covered for 5 perils $10,000 covered for 7 perils
Property in open 100 feet from building 500 feet from building
Rain snow ice to property in the open Excluded Covered
Fire department charges $1,000 Unlimited
Debris removal $10,000 if caused by covered peril 25% of damaged property for covered perils
Vacancy 60 days No limit
Property value Subject to coinsurance penalty
for under reporting
Covered at agreed amount plus 25%
Valuation Coverage at value stated Up to 125% of stated Value
Glass breakage $100 each pane/$500 maximum Up to property limits
Seepage & leakage 14 days No limit
Property loss reporting 180 days for replacement cost Reasonable time for replacement cost
Water damage from frozen pipes Excluded Resulting water damage is covered
Property in transit $1,000 $10,000
Ordinance law coverage Must be added for extra cost Included on all covered properties (free)
Errors & Omissions (E&O) Must apply & buy separately Included if purchased and member insures
the site with HARRP (same application)
E & O claim reporting period 60 days after policy expires 90 days after policy expires
Employment practices liability Must apply & buy seperately Included with purchase of E & O based on “employee” headcount
Employee dishonesty Sold separately, separate cost Included with liability coverages (free)
Liability coverage Starts at $1,000,000 $2,000,000
Medical payments absent liability $5,000 maximum Excluded unless HA caused injury
Cancellation of coverage notice 30 days 60 days
Dividend payments to clients Some mutual insurers do Yes. $4,000,000 for policy years 1987 to 1992!
General liability
Basic Limits
1 million/2million 2 million/2million
Equipment breakdown
(boiler & machinery)
Covers accidental breakdown of electrically operated equipment. Must be purchased at a separate policy for an additional premium. Covers accidental breakdown of electrically operated equipment. Covered on HARRP insured locations (free on HA owned locations)
Auto limits  1 million/2million  2 million/ 2million