Coverage Summary & Comparison

***Important Update***

2020 HARRP Coverage Agreement

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 2018, 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

CoverageCommercial InsuranceHARRP
Outdoor property$1,000 covered for 5 perils$10,000 covered for 7 perils
Property in open100 feet from building500 feet from building
Rain snow ice to property in the openExcludedCovered
Fire department charges$1,000Unlimited
Debris removal$10,000 if caused by covered peril25% of damaged property for covered perils
Vacancy60 daysNo limit
Property valueSubject to coinsurance penalty for under reportingCovered at agreed amount plus 25%
ValuationCoverage at value statedUp to 125% of stated Value
Glass breakage$100 each pane/$500 maximumUp to property limits
Seepage & leakage14 daysNo limit
Property loss reporting180 days for replacement costReasonable time for replacement cost
Water damage from frozen pipesExcludedResulting water damage is covered
Property in transit$1,000$10,000
Ordinance law coverageMust be added for extra costIncluded on all covered properties (free)
Errors & Omissions (E&O)Must apply & buy separatelyIncluded if purchased and member insures the site with HARRP (same application)
E & O claim reporting period60 days after policy expires90 days after policy expires
Employment practices liabilityMust apply & buy seperatelyIncluded with purchase of E & O based on “employee” headcount
Employee dishonestySold separately, separate costIncluded with liability coverages (free)
Liability coverageStarts at $1,000,000$2,000,000
Medical payments absent liability$5,000 maximumExcluded unless HA caused injury
Cancellation of coverage notice30 days60 days
Dividend payments to clientsSome mutual insurers doYes. $4,000,000 for policy years 1987 to 1992!
General liability Basic Limits1 million/2million2 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 limits1 million/2million2 million/ 2million