Liability Insurance&

Best Practices When Working With Sub-Contractors

2nd Annual Oklahoma Excavators Safety Expo 2016Norman, OK

April 19th, 2016

FAMILY & BEDTIME

Josh DeBoerInsurance Advisor

Fred Daniel & Sons, Inc. andFounder

Oil Patch Insurance

cell: 918-504-6723emails: contact@oilpatchinsurance.com

jdeboer@fdands.com

www.oilpatchinsurance.comwww.fdands.com

OPENING REMARKS02

Class General Overview03

Liability Exposures & Areas

of Concern

Assessment & Controls

Best Practices: Working with Sub-

Contractors

Coverage Highlights

Claims Quick Q & A

Risk Control Services

Liability Exposures & Areas Of Concern-Commercial Automobile-See handout

Significant Exposure to losses

Variety of Vehicles Used to Transport Employees, Materials, Equipment To Job Site, As Well As Sales and Other Business Support Functions.

04

05

Automobile Exposure Assessment Checklist Operations Drivers Vehicle Maintenance Vehicles Accident Reporting & Analysis

• Operations-Safety Policy

• Driver Qualification

• Driver Training & Supervision -Telematics (speeds, location, fuel consumption)

• Emergency Equipment

• Vehicle Maintenance & Inspection

• Accident Reporting, Recording and Analysis

Commercial Auto Exposure Controls

Liability Exposure Assessment Checklist

The following areas should be reviewed in order to assess the liability exposures of an excavation contractor.

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• Jobsite Activities• Business Premises• Completed Operations• Environment Impairment

Risk Control 19

Excavation Contractors Liability Areas Of Concern 08

Utility Damage

Displacement Or Settlement Of Existing Structures

Blast Damage

Unmarked Excavations

Hazardous Tools & Equipment

Fire

Foundation Damage

Contaminated Fill

Liability Exposure Controls Overview-Operations 09

General

Site Prep

Utility Location

Existing Structures

Site Security

Barricades & Warnings

Mobile Equipment

Blasting

Tools

Housekeeping

Fire Prevention

Independent Contractors

Premises

Completed Operations

Environmental Impairment

Best Practices When Working With Sub-Contractors/Independent Contractors

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Liability Exposures

Managing Subs

Contractor Selection

Contractual Agreements

Certificates of Insurance

20Working With Sub-Contractors

Contractual Agreements

Contractor Selection

Certificate of Insurance

(COI)

Comp Source Mutual No Longer Accepts Affidavit of Exempt Status

13 Property-Inland Marine Exposure Assessment & ControlsThe following areas should be reviewed:-Contractors Equipment-Business Interruption-Facility-Accounts Receivable and Valuable Papers/Records

C N A Coverage Highlights-Contractors Errors & Omissions and Pollution-Fills in the CGL Exclusions Gaps

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• Claims alleging faulty workmanship, design errors or omissions, and the use of defective materials or products.

•Use of Building Information Modeling (BIM) systems

•Covers negligent acts, errors or omissions by the insured or a person acting on its behalf in the performance of design services.

•Worldwide coverage for claims brought in the U.S.Optional Extended Reporting Period for One to Five Years

C N A Coverage Highlights-Pollution Liability

Proactive coverage for mold

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No exclusions for asbestos, respirable dust or silica

Coverage for pollution claims, including government-mandated clean-up costs

Contractors E &O and Pollution-CNA Coverage specifications 16

Availability-in all 50 states, D.C. and U.S. Territories (U.S. Virgin Islands Excluded)

Minimum premium (At $1MM limit)-$3,200 for Errors & Omissions only; $4,200 for E &O

and pollution combined

Minimum deductible-$3,000

Limits up to $5MM

Coverage-Excess & Surplus with CNA

Policy Options-E&O, Pollution liability, or combined policy

3 E&O and Pollution Claims Scenarios-See handout (page 2)

Faulty Workmanship

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Defective Materials

Design

C N A Underground Utility Strike Claim Units 18

1. Incident-Cable line damage due to collapse of retaining wall under construction.

Demand from Utility Owner $200,000

Claim Outcome- Negotiated $10,000 settlement

2. Incident-Underground cable cut during excavation for sewer line.

Demand from Utility Owner $15,037

Claim Outcome-$0 paid-won case through arbitration

3. Phone line cut during auger boring operations.

Demand from Utility Owner $116,157

Claim Outcome-$8,078 payment accepted

RISK CONTROL-Technical Capabilities from Liberty Mutual-See handout 21

Essential Services-Corporate Safety Program Review

Managing Key Exposures-Assistance Developing Controls & Solutions

Pre-operational Safety Planning-Pre-construction planning-Phase planning-Task planning

Job Site Visits

RISK CONTROL-Technical Capabilities from Liberty Mutual-See handout 22

Cont….RISK CONTROL-Technical Capabilities from Liberty Mutual

Complimentary Safety Resources-Construction Safety Webinars and Seminars

Webinars and seminars are designed to cover key topics relevant to the risk and exposures common to contractors.

Risk Control Services Handouts 23

Risk Control Consulting Center-Liberty Mutual

Risk Control Services Bulletin-Liberty Mutual

Improving Workplace Safety-Liberty Mutual Safety Net

Trench Safety-Quarterly Newsletter

Trenches/Excavation/Shoring-Construction Safety Talks

Contact Information:Cell Phone: 918-504-6723

Office Number: 918-582-8206Emails: contact@oilpatchinsurance.com

jdeboer@fdands.com

QUESTIONS?24

THANK YOU