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WHEATON, Ill., May 12, 2000-- A new commercial liability endorsement
developed by the American Association of Insurance Services (AAIS) is
designed to do for property damage what "med pay" provisions
do for bodily injury.
Under the new Voluntary Property Damage Coverage
option filed for the AAIS Artisans Program, insured contractors are
reimbursed for what they pay or do to compensate others for (1) damage
to property of others in the insured's care, custody, and control; and
(2) damage to property of others arising from the insured's work. The
coverage would apply no matter who is legally liable for the damage, a
critical distinction from standard liability coverages for similar
losses.
"By 'voluntarily' assuming responsibility for
certain losses, the insured and his insurer avoid disputes over
liability that could lead to ill will and larger claims," says
Janice Nieman, AAIS manager for commercial liability. In this way, the
voluntary damage coverage is analogous to standard "med pay"
provisions, which pay a certain limit for bodily injury claims
regardless of fault, in hopes that a claim can be resolved quickly.
But while med pay provisions are generally established at $1,000 per
claim in the base form, the insurer can designate the amount of
voluntary damage coverage by entering both per occurrence and
aggregate limits on a schedule that accompanies the AAIS endorsement.
Several other new endorsements have also been filed for the AAIS Artisans Program. These provide:
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Liability coverage for employment related practices such as discrimination, sexual harassment, and wrongful termination;
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An extended period for reporting employment related claims; and
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Inland marine coverage for contractors' equipment and contractors' tools (owned, leased, or rented), and "installation floater" coverage for materials, supplies, fixtures, and equipment intended to become a permanent part of a structure.
AAIS is a product development resource that helps more than 600 property/casualty companies compete in their markets by providing cost-effective technical services. The AAIS Artisans Program is the country's only standard program of forms and manuals designed for insuring artisan contractors, such as carpenters, electricians, and plumbers. For information on affiliating with AAIS for use of the Artisans Program, contact Bob
Schnoll, marketing manager, at 800/564-AAIS, or visit the AAIS Web site at
www.AAISonline.com.
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