[Equipment Breakdown] Insurance
Covers mechanical breakdown of any equipment that runs on or generates electricity. This coverage fills a property insurance gap on power surges arising from artificially generated electricity (i.e., utility company caused power surges). Wear and tear is an excluded peril.
Builder’s Risk Insurance
This type of insurance covers ground up construction or structural alterations. It can also be used to cover items to be installed on a building being moderinized. Coverages can be written to cover hard cost (bricks and nails) and soft cost (architectural plans, loss of income, etc).
Business Interruption Insurance (Loss of Income Insurance)
Business Interruption Insurance covers your loss of income if a catastrophe or accident shuts your business down. Floods, fires, hurricanes, tornados, and other unexpected devastating events do occur. Depending on the type of policy available and the type of perils the policy covers, if you are unable to conduct business, insurance may pay the income you lose as the result of a loss. The type of catastrophes covered varies regionally based on the local risks for certain types of natural disasters. Coverage is usually provided as either a stated amount and time period or as “actual loss sustained” for a stated period of time.
Directors and Officers for Nonprofit Corporations
This type of policy covers the Board of Directors’ decisions and policies from claims. This insurance provides coverage against wrongful acts which might include actual or alleged errors, omissions, misleading statements, and neglect or breach of duty on the part of the insured. Many D&O policies include employment practices liability. This coverage is on a non standard form, meaning some policies are broader than others. We will attempt to get the broadest coverage available.
Covers a building and its contents, but includes a percentage deductible on each. A special policy of endorsement exists because earthquakes are not covered by most business policies. Earthquake is difficult to purchase in California.
Errors and Omissions
Whenever an entity performs a professional service (i.e. property management, first time homeowner loans, lead paint inspections, real estate brokerage or health care), the exposure needs to be insured, as it is not covered by a general liability policy. Errors and Omissions covers wrongful acts which fail to meet a duty required or expected of that profession.
Excess Liability Insurance
Provides coverage over and above primary insurance. The coverage is triggered when the amount of loss exceeds (exhausts) an existing primary policy. Excess liability coverage mirrors the terms and conditions of the underlying policy.
This is a type of crime policy that includes: employee dishonesty, check alterations, theft of monetary instruments. It can be written to include theft through electronic transfer of funds.
Protects the fiduciaries of health and welfare or pension plans from claims by employees alleging financial loss due to mismanagement of funds.
Coverage for flood damage is available from the federal government under the National Flood Insurance Program but is sold by licensed insurance agents. Flood coverage is excluded under commercial property policies; however, flood damage is covered under the comprehensive portion of an auto insurance policy.
Hired and Non-owned Auto Liability
Coverage that protects a nonprofit for claims that result from the use of a vehicle not owned by the nonprofit but used on the nonprofit’s behalf (for example, an employee’s or volunteer’s personal vehicle). Hired and non-owned coverage is excess over the insurance on the auto involved in the accident. The policy protects the named insured, not the driver of the vehicle. This coverage can be purchased as an add-on to the CGL policy, as an adjunct to the business auto policy, as part of a business owner’s policy or as a separate policy.
Lead Paint Abatement Insurance
Generally, a contractor who is abating lead must purchase this coverage. However, if a housing authority is abating lead paint on a newly purchased pre 1987 building, under forced account, it should purchase this coverage. Lead paint is a standard exclusion on liability policies.
Lead Paint Errors and Omissions for Housing Inspectors and Certified Risk Assessors
This insurance recently became available through negotiations between HARRP staff and Lloyds of London underwriters. This policy was created to fill the lead paint coverage gap that appears in standard apartment insurance policies, as well as pool coverages. It extends coverage to all properties inspected by the housing authority at owned and partially owned (tax credits and nonprofit) housing, as well as contingent bodily injury coverages. Mold coverage can be added as an option.
Liability insurance is coverage that protects against claims against a property owner for injuries or property damage sustained as a result of the property owner’s negligence or inappropriate actions. Liability insurance includes third party bodily injury, property damage, personal injury (i.e. injury not to the body such as defamation) and advertising injury. We can add hired and non-owned auto, property managers’ liability and employers’ liability to this type of insurance.
Maintenance Bonds [Subdivision Bonds]
This coverage is available when the entity that obtains the permit needs to guarantee to the local municipality that the public improvements (i.e. sidewalks, sewers, etc.) will be maintained for a given period of time. Some states exempt public entities (like housing authorities) from this bonding requirement. However, if the contractor obtains the permit, they are not exempt from the bond requirement.
This is a type of errors and omissions policy and is required on Notary Publics by law.
This is a policy that any executive or board member may want to purchase. It protects their personal assets if they do things out of the scope of their duties. Former President Bill Clinton was defended against Paula Jones’ law suit with one of these policies.
Property insurance provides protection against risks to property (buildings, their business contents and certain outbuildings and equipment) such as fire, theft or weather damage. This can include specialized forms of insurance such as fire insurance, flood insurance, earthquake insurance, loss of income insurance, or boiler insurance. Property is insured in two main ways – special perils (sometimes called all risk) and named perils. Special perils cover all the causes of loss not specifically excluded or eliminated in the policy. Named perils does as its name implies, covers only those perils specifically named in the policy. We use several insurance companies for the best quote.
Site Specific Pollution Insurance
Often, this type of pollution insurance is needed when a property is being purchased and the owner wants the purchaser to indemnify them for any preexisting pollution in the property. It is also available on properties that have been abated for pollutants after it has been cleaned up and a clearance test is issued.
Tenant Discrimination Insurance
Every housing provider should have this insurance to fill a common coverage gap within the liability policy. It covers any allegation of discrimination to tenants, including ADA. This coverage may not be needed if it is included in an errors and omissions policy. This commercial policy includes coverage for fair housing administrative hearings.
Umbrella insurance is designed to provide an extra layer of coverage above your primary layer. The excess insurance does not respond, however, until the limits of liability in the primary layer have been exhausted. Because of the method of response, it is often much less costly than the primary layer, per $1,000,000 of coverage. The excess layer provides not only higher limits but catastrophic protection for very large losses.
Underground Storage Tank Insurance (for leaks)
If a property has underground storage tanks, this product covers the pollution clean up and liability to other parties.
For coverages not listed above, contact ORWACA Agency at (360) 574-9035.