The article of the month deals with the alternate employer endorsement to the workers comp policy. To the extent that insurers are willing, an alternate employer endorsement is a good way to protect entities that are involved in special employer situations. This occurs where one entity borrows the employee of another entity and desires protection in the event the borrowed employee is injured while under the direction and control of the entity that has borrowed that employee.

The article of the month discusses the alternate employer endorsement issued by the National Council on Compensation Insurance (NCCI) and also analyzes court decisions dealing with the subject.

The court cases in the Dec Page come from the Mississippi Supreme Court, a California court of appeal, the U.S. District Court in New York, and the U.S. District Court for the Northern District of California. The Mississippi Supreme Court discussed when an insurer may void a policy where the insured made material misrepresentations during the application process. The California Court of Appeal, Second District, decided whether the intentional act of the insured meant the intentional acts exclusion in the policy applied. The U.S. District Court for the Southern District of New York discussed the meaning of the phrase “entrustment to others”. Finally, a total residential exclusion was at the center of a ruling by the U.S. District Court in California in a dispute over coverage for property damage claims.

Questions and Answers

Should all ordinary payroll be deducted from the “should have” calculation if form CP 15 10 is not attached to the CP 00 30 policy? See Ordinary Payroll Deduction and the Payroll Limitation or Exclusion Endorsement.

Does extra expense coverage apply for emptying a tank that was damaged by a lightning strike? See Pump Damage and Extra Expense Coverage.

MSO Mandatory Endorsements Fracking Exclusions

While fracking-related losses would be considered excluded under MSO commercial forms, an exclusion for fracking was added to the New Jersey and Pennsylvania endorsements to emphasize the intent of the policy that losses caused by fracking are not covered. See MSO Mandatory Endorsements Fracking Exclusions.

Commercial Crime Coverage Form

ISO has updated the Commercial Crime Coverage form CR 00 20 and CR 00 21. Changes are effective November 1, 2015. See Commercial Crime Coverage Form.

Employee Theft and Forgery Form

ISO has updated the Employee Theft and Forgery form. Changes are effective November 1, 2015. See Employee Theft and Forgery Form.