In our last podcast, thieves cut into a job site and stole a variety of tools, equipment, and materials. The general contractor had hired a subcontractor to install the plumbing system. Copper piping to be installed at the job site and owned by the sub were also stolen.

Notable Timestamps

[ 00:45 ] - Last week's scenario is expanded to discuss the impact on subcontractors.

[ 01:50 ] - The PLRB crew discusses inside jobs, boats, and gap coverage.

[ 02:50 ] - Subcontractors more often prefer Installation Floaters as opposed to Builders Risk.

[ 04:00 ] - The Installation Floater form generally covers materials, fixtures, and equipment that will become a permanent part of the completed project.

[ 05:30 ] - The coverage typically ends once the items are installed. So, these copper pipes would be covered under an installation floater.

[ 08:00 ] - Despite the name "floater," waterborne equipment is specifically excluded. Unless Mike opens up a seafood restaurant with some unusual decor...

[ 09:13 ] - The Contractors Equipment form covers mobile machinery used by a contractor or subcontractor as part of their construction work.

[ 10:50 ] - The Motor Truck Cargo form provides coverage for the cargo or goods being transported by a trucking or freight transportation company: the risks associated with transportation.

[ 12:32 ] - The trucking company might be liable for the panels because they were on their truck, but they might be covered under their Motor Truck Cargo coverage, depending on its delivery status.

[ 13:30 ] - Jeff provides a recap of the scenario and the points above.

[ 16:20 ] - A very special (and hopefully temporary) farewell to PLRB's longtime podcast host, Alissha Watley!

Your PLRB Resources

Inland Marine – Prop. Q&A 187 - https://www.plrb.org/documents/inland-marine-prop-qa-187/

Discussion of the definition of equipment and machinery - PLRB, Commercial Property Forms Annot. Key CP941 - https://www.plrb.org/legacy-documents?DN=46384

Installation Floater Coverage - https://www.plrb.org/documents/installation-floater-coverage/

Employees of member companies also have access to a searchable legal database, hundreds of hours of video trainings, building code materials, weather data, and even the ability to have your coverage questions answered by our team of attorneys (https://www.plrb.org/ask-plrb/) at no additional charge to you or your company.

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Send us your Scenario!

Please reach out to us with your scenario! This could be your “adjuster story” sharing a situation from your claims experience, or a burning question you would like the team to answer. In any case, please omit any personal information as we will anonymize your story before we share. Just reach out to scenario@plrb.org.

Legal Information

The views and opinions expressed in this resource are those of the individual speaker and not necessarily those of the Property & Liability Resource Bureau (PLRB), its membership, or any organization with which the presenter is employed or affiliated. The information, ideas, and opinions are presented as information only and not as legal advice or offers of representation. Individual policy language and state laws vary, and listeners should rely on guidance from their companies and counsel as appropriate.

Music: “Piece of Future” by Keyframe_Audio. Pixabay. Pixabay License.
Font: Metropolis by Chris Simpson. SIL OFL 1.1.
Icons: FontAwesome (SIL OFL 1.1) and Noun Project (royalty-free licenses purchased via subscription).
Sound Effects: Pixabay (Pixabay License) and Freesound.org (CC0).

Thieves cut through a fence to access the insured general contractor's job site’s and stole tools, a forklift, a pallet of marble tiles, and a truck loaded with precast concrete wall panels.

Notable Timestamps

[ 00:30 ] - The insured finds out that these losses are not covered under their standard CP forms.

[ 01:45 ] - The team discusses impressive thieves, the defintion of a CP policy, New Year's Resolutions, and vision boards.

[ 05:13 ] - The CP/BPP form generally applies while the property is on or within 100 feet of the premises described in the policy’s declarations. The job site is not the insured's listed place of business.

[ 07:05 ]- A Property Off Premises Coverage Extension exists, but applies only to property that is temporarily at a location the insured does not own, lease or operate.

[ 07:45 ] - Here, GC’s marble tiles and precast panels were not temporarily at the job site – they were going to be permanently installed there.

[ 08:30 ] - GC arguably “operated” the jobsite, as it had control over the site, including access etc.

[ 09:20 ] - The coverage extension also contains an exclusion for property in or on a vehicle, so that applies to eliminate coverage for the panels on the truck.

[ 09:40 ] - GC could have protected this property via Inland Marine Insurance.

[ 10:20 ] - Originally, “marine” insurance policies were written when virtually all commercial goods were transported by boat. However, due largely to the development of railroads, marine insurance was extended to provide “warehouse to warehouse” coverage.

[ 11:04 ] - While there are a number of inland marine forms, the most common are Builders Risk, Installation Floater, Contractors Equipment, and Motor Truck Cargo Liability.

[ 12:10 ] - Builder’s risk insurance covers buildings and other structures during the course of construction, including materials and supplies that will become a permanent part of the buildings or the structures, while on the jobsite or on the way to the jobsite.

[ 14:10 ] - Under the claim scenario here, the pallet of marble tiles and precast concrete wall panels would be covered, but not the the generators, concrete saw, or forklift, since they are not materials or supplies.

[ 15:10 ] - Jeff provides a recap of the scenario and the points above.

Your PLRB Resources

Inland Marine – Prop. Q&A 187 - https://www.plrb.org/documents/inland-marine-prop-qa-187/

Form – AAIS IM 7050 09 08 – Builders Risk - https://www.plrb.org/documents/form-aais-im-7050-09-08-builders-risk/

Employees of member companies also have access to a searchable legal database, hundreds of hours of video trainings, building code materials, weather data, and even the ability to have your coverage questions answered by our team of attorneys (https://www.plrb.org/ask-plrb/) at no additional charge to you or your company.

Subscribe to this Podcast

Your Podcast App - Please subscribe and rate us on your favorite podcast app

YouTube - Please like and subscribe at @plrb

LinkedIN - Please follow at “Property and Liability Resource Bureau”

Send us your Scenario!

Please reach out to us with your scenario! This could be your “adjuster story” sharing a situation from your claims experience, or a burning question you would like the team to answer. In any case, please omit any personal information as we will anonymize your story before we share. Just reach out to scenario@plrb.org.

Legal Information

The views and opinions expressed in this resource are those of the individual speaker and not necessarily those of the Property & Liability Resource Bureau (PLRB), its membership, or any organization with which the presenter is employed or affiliated. The information, ideas, and opinions are presented as information only and not as legal advice or offers of representation. Individual policy language and state laws vary, and listeners should rely on guidance from their companies and counsel as appropriate.

Music: “Piece of Future” by Keyframe_Audio. Pixabay. Pixabay License.
Font: Metropolis by Chris Simpson. SIL OFL 1.1.
Icons: FontAwesome (SIL OFL 1.1) and Noun Project (royalty-free licenses purchased via subscription).
Sound Effects: Pixabay (Pixabay License) and Freesound.org (CC0).

For the next two weeks over the holidays, we’re going to feature some excellent podcasts from before we rebranded as “What’s the Scenario? with PLRB.” These segments were called “The Coverage Contrarian,” and they featured PLRB coverage attorneys Michele Hunter, Eric Friedmann, and Frank Gagliardi as they argued vociferously about coverage issues big and small. This week, we’ll explore the scenario of an insured repair business that repaired a valve on a large boat so poorly that the whole engine was damaged. Let’s listen in.

Key Takeaways

1. The critical inquiry in a defective or faulty workmanship case is, the scope of the insured's agreed upon, contracted work.

2. Under the majority view, the damage to the engine would likely be considered damage to other property, because the insured was not hired to work on the whole engine itself.

3. Under the minority view, working on an interconnected part of an engine would be considered working on the engine as a whole.

Your PLRB Resources

PLRB on Demand (Classic Podcast Episodes) - https://www.plrb.org/education/education-resources/?general_index%5BrefinementList%5D%5Blms_type%5D%5B0%5D=Podcast&general_index%5BsortBy%5D=general_index%3Apublished_on%3Aasc

Employees of member companies also have access to a searchable legal database, hundreds of hours of video trainings, building code materials, weather data, and even the ability to have your coverage questions answered by our team of attorneys (https://www.plrb.org/ask-plrb/) at no additional charge to you or your company.

Subscribe to this Podcast

Your Podcast App - Please subscribe and rate us on your favorite podcast app

YouTube - Please like and subscribe at @plrb

LinkedIN - Please follow at “Property and Liability Resource Bureau”

Send us your Scenario!

Please reach out to us with your scenario! This could be your “adjuster story” sharing a situation from your claims experience, or a burning question you would like the team to answer. In any case, please omit any personal information as we will anonymize your story before we share. Just reach out to scenario@plrb.org.

Legal Information

The views and opinions expressed in this resource are those of the individual speaker and not necessarily those of the Property & Liability Resource Bureau (PLRB), its membership, or any organization with which the presenter is employed or affiliated. The information, ideas, and opinions are presented as information only and not as legal advice or offers of representation. Individual policy language and state laws vary, and listeners should rely on guidance from their companies and counsel as appropriate.

Music: “Piece of Future” by Keyframe_Audio. Pixabay. Pixabay License.
Font: Metropolis by Chris Simpson. SIL OFL 1.1.
Icons: FontAwesome (SIL OFL 1.1) and Noun Project (royalty-free licenses purchased via subscription).
Sound Effects: Pixabay (Pixabay License) and Freesound.org (CC0).