Will a notice be attached to renewals to advise Insuredâ€™s of these changes?
Yes, a policyholder notice will go out, giving an overview of the changes. It will also be posted on the broker portal. Your underwriter can supply you with a hard copy if needed.
Are other insurers adopting the changes that have been made to the IBC wording?
Some insurers already have General Aggregate Limits in their CGL wordings. Check with your other markets to find out if they have already done so, or will be implementing them.
There is a limitation in the definition of Insured Contract for leased premises that seems to take away coverage that the insured may need under the conditions of the lease agreement.
The restriction has been added to preclude coverage when the insured is liable solely because of the contract they have signed with the lessor. Coverage is not excluded with respect to their tort legal liability (as opposed to contract) for damage caused by negligence. Under the CGL, property damage to rented premises is excluded because it is covered under the Tenantsâ€™ Legal Liability section of the policy, as long as that liability arises from negligence by the insured and not just the provisions in the lease.
Are the coverage changes being â€œread inâ€ to all policies effective January 1, 2006?
No. The changes will take effect on renewal. For example, a risk with an expiry date of April 15, 2006 will be subject to the new wordings as of that date.
Will you write OL&T coverage (Ownersâ€™, Landlordsâ€™ and Tenantsâ€™ Liability)?
ING does not have a separate OL&T form. Normally, we prefer to write the entire risk. In exceptional cases where only OL&T coverage is desired, we would restrict our CGL by excluding the Products-Completed Operations hazard. Note that the General Aggregate would continue to apply.