Abel Vargas was an employee of CAB Concrete. CAB was subcontracting with Largo Concrete on a job for Carmel Development Company. Carmel was a golf course and residential contractor who did the right thing and made sure that subcontractors had adequate underlying insurance.

Largo carried $1 million primary and $10 million umbrella. When Abel was injured, Carmel knew that Largo’s insurance would be responsible. WRONG!!

Largo’s primary insurance responded with $1 million but the umbrella carrier pointed out that their policy did not come into play until ALL other policy limits were exhausted. Since Carmel had $1 million primary and $10 million umbrella – they had to answer the call first.

Carmel Development had expected its policies to not respond until after its subcontractor’s limits were exhausted. Because of the wording of the subcontractor’s umbrella policy, Carmel Developments policies were next in line after Largo’s primary policy limits were exhausted.

Click here for more detail on this court case.

There is no “standard” umbrella or excess policy. However, ISO has developed a form they hope will become an industry standard. When considering an umbrella policy, compare each company’s policy using the ISO version as a standard. This same comparison can be used by an insured when considering subcontractors policies.

Click here to find out more about the ISO Commercial Umbrella.

Are there any cement contractors in your area? Have you considered approaching one but did not feel that you had the necessary expertise to approach one? The Producers Commercial Lines Risk Survey has a narrative that explains the major exposures, the classifications for rating and the recommended coverages to consider. There is also a questionnaire designed just for the contractor and an E&O coverage checklist to use in discussing coverages with the client.

Click here to view the Cement Contractors Commercial Lines Survey Narrative.

Many great ideas never move IN ACTION because of the difficulty in drafting the prospect letter. If you are ready to start contacting the cement contractors in your area, Producer OnLine has a letter you can use and all you have to do is add the name, address and your signature.

Click here if you are ready to put your ideas into action.

The Insurance Marketplace is the most widely used directory for locating an excess and surplus provider because it is accurate and stays up with the fast changing excess and surplus market. The following classifications have been added to help you stay on top of the market!!

• C-80 Countersignature Regulation
• Contractual Bonus Insurance
• Document Destruction, Excess Flood Insurance
• Medi-Spa
• Military Housing Property Manager
• Professional Insurance
• Industry Organization

Have you found what you need in the Producer OnLine? Is there a classification to add to the Producer's Commercial Lines Risk Evaluation System or a subject that you would like to see covered in PF&M?  Contact us now.

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