May 2014 Intro Page

Dec Page

The article of the month in the Dec Page deals with railroad protective liability insurance. When a business contracts with a railroad to perform work on railroad property, the contract ordinarily requires the business to provide liability insurance protecting the railroad against claims arising in connection with the work. A railroad may require the same type of coverage when a firm contracts with a nonrailroad entity to do work that requires crossing railroad property or that is adjacent to railroad property. Railroad protective liability insurance is the tool to accomplish this protection.

The ISO form, CG 00 35, protects the railroad from legal liability to others arising from work on its premises, as well as damage to its own property arising from the work. The designated article describes the coverage afforded under the terms of this policy, as well as exclusions, conditions, and definitions.

The court cases in the Dec Page address several topics. An Ohio Court of Appeals rules on the viability of an exclusion that applies to uninsured/underinsured motorists coverage in that state. The Wisconsin Court of Appeals answers the age old question: is cow manure a pollutant as defined in the farmowners policy? The United States Circuit Court of Appeals, Fifth Circuit, discusses a liability claim and offers a clarification of what is meant by the “use” of an auto when it comes to insurance coverage. The final case comes from the Supreme Court of Pennsylvania and deals with statutory employer status and defense against a lawsuit by an injured worker under the workers compensation laws.

Questions and Answers

Is poor packaging by a shipping company work incorrectly performed? See Equipment Damaged During Shipping. Does the care, custody, or control exclusion apply to vehicle being worked on at claimant's home? See Vehicle's Wiring System Damaged During Windshield Installation. Can an insurance company and its agent extend CGL to a location in a state in which they are not licensed? See Multistate Exposure Exception to Licensing Law.

Other States Insurance

A feature of the workers compensation policy that is widely misunderstood is the Other States insurance provision. This coverage is required for any business expanding its operations beyond its state of domicile into other states. This article explains what the Other States insurance provision is, how it works, and how employers can get into trouble if they do not understand the provision's requirements. Also discussed are the issues confronting employers that need coverage under residual markets, monopolistic fund states, and stop gap coverage. See Other States Insurance.

Businessowners Property Coverage, Part II

The Businessowners Coverage Form, BP 00 03 07 13, incorporates special perils coverage for property, liability coverage, and policy conditions. This article focuses on the conditions and definitions applicable to the property coverages. The article has been updated to reflect changes made to 2013 edition of the form. See Businessowners Property Coverage, Part II.

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