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.
Do you charge an additional premium for adding the Designated Location and Project Site General Aggregate Endorsements?
Currently, pricing is based on the Each Occurrence Limit provided and the exposure. For example, a schedule of locations is usually priced per location while contractors are priced based on revenue. Adding the endorsement will not result in increased rates simply because of the implementation of a General Aggregate Limit.
If Electronic Data is excluded and not considered part of the Named Insuredâ€™s product (as it is not a tangible product), how can the insuredâ€™s data be protected?
Some property forms, e.g., EDP endorsements, Valuable Papers coverage, may provide coverage for re-creation of data if destroyed or damaged by an insured peril. Liability coverage may be available through a specialty market if the insured has liability exposures where their product can cause damage to, corruption, or loss of data (computer viruses & worms), web hacks and computer break-ins to steal proprietary information or confidential customer information. Your underwriter can give you names of insurers who may write thisâ€œcyberâ€ or â€œmediaâ€ liability coverage.
Can we â€œbuy-upâ€ the General Aggregate Limit? (e.g., if ING normally provides $5M General Aggregate Limit where Each Occurrence Limit is $5M, would you consider $5M Each Occurrence/$10M General Aggregate?) As brokers, we are concerned that in the unlikely case that a single event exhausts the General Aggregate, our client will be left with no coverage for the remainder of the policy period on premises/operations losses.
The wording now excludes: losses that any insured or employee knew hadoccurred, in whole or in part, prior to the policy period; and losses that began prior to the insurer going on risk and continued into subsequent policy periods. Why was it necessary to make this change? Is the policy now a â€œclaims-madeâ€ form?