Sunday, 15 March 2015

What is excess liability policy

Excess liability policy 

A policy issued to provide limits in excess of an underlying liability policy. The underlying liability policy can be, and often is, an umbrella liability policy. An excess liability policy is no broader than the underlying liability policy; its sole purpose is to provide additional limits of insurance

For an example, if a Construction project has umbrella insurance cover for Works with a deductible of 1M (which means any claim below 1 M shall be born by Contractor and Insurance company will not pay) that has been arranged by Employer, then the Contractor shall arrange another insurance cover to cover the deductible and that insurance cover is call as Excess liability policy

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'via Blog this'

Wednesday, 11 March 2015

Difference Between a Full Warranty and a Limited Warranty?

Full Warranty

Any company offering a full warranty must repair or replace the product during the specified warranty period.  A full warranty may be active for just a limited time after the item is purchased, perhaps 60 or 90 days, or it may cover the product "for life" . But the actual scope of a lifetime warranty may mean the item is covered for its lifetime on the market (until it is discontinued) or it may last only for as long as the original buyer owns it, but it rarely comes without conditions.

 Limited Warranty

As its name implies, a limited warranty is limited to just the specified parts, certain types of defects, or other conditions. Often, it covers just the parts and not the labor required to fully fix something. A limited warranty also may include the stipulation that the manufacturer and the consumer split the cost of repairs for a given period of time.

Typically, both limited and full warranties cost extra as an add-on.

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Wednesday, 4 March 2015

What does it means by waiver of subrogation?

First understand that subrogation is the process where an insurer pursues reimbursement from another insurer for claims they paid that were caused by the actions of their policyholder.  Waiver of subrogation prevents the insurer from pursuing reimbursement the other insurer for such claims.

For example, a general contractor requires waiver of subrogation status from a subcontractor on General Liability, Commercial Auto and WC policies. The subcontractor‘s insurer grants the request and a certificate of insurance is issued.  

Later on the job site, a general contractor employee drops a tool while on the second level, striking a subcontractor employee on the first floor.  The employee is rushed to the hospital for a head injury and damage to his eye. The subcontractor’s workers compensation policy responds by paying for the medical bills and lost wages of the injured employee. The total claim is expected to run about $185,000.

Under normal circumstances, the subcontractor’s workers compensation insurer would then subrogate against the general contractor’s general liability policy for reimbursement of the $185,000.  However, since the subcontractor agreed to grant the general contractor waiver of subrogation status, the subcontractor’s workers compensation insurer is blocked from doing so.  The end result is that the general contractor’s insurance program is spared from having to pay for the actions of their employee that resulted in bodily injury to a third party.

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