September Safety Topics 5 6 9 10
Attendance
Wednesday, September 1, 2010
Monday, August 30, 2010
VACANCY
Are you covered if your vacant building burns down?
Commercial property insurance policies include a condition that limits or excludes coverage when a building is vacant beyond a certain period of time.
DEFINITION OF VACANCY
Building Owner-
If the insurance policy is issued to a building owner then the building is considered vacant when at least 31% of its total square footage is:
1. Not rented to a lessee or sub-lessee and used by the lessee or sub-lessee
to conduct its customary operation; and/or
2. Used by the building owner to conduct customary operations.
Tenant-
If the insurance policy is issued to a tenant, and with respect to the tenants interest in the Covered Property, building means the unit or suite rented or leased to the tenant. The building is considered vacant when the tenant does not contain enough business personal property to conduct customary operations.
VACANCY PROVISIONS
If the building where loss or damage occurs has been vacant for more than 60 consecutive days before the loss or damage occurs: The policy will not generally pay for any loss or damage caused by any of the following even if they are Covered Causes of Loss:
1. Vandalism
2. Sprinkler leakage, unless you have protected the system against freezing’
3. Building glass breakage
4. Water Damage
5. Theft or
6. Attempted theft
With Respect to the Covered Causes of Loss other than those listed above (1-6), the policy reduces the amount we word otherwise pay for the loss or damage by 15%.
EXAMPLES
1. A building owner signs rental agreements with various tenants that will ultimately occupy 40% of the building. At the time of the loss only 10% of the building is actually occupied. The building owner thinks that the building isn’t vacant because the lease agreements are in place. However; the insurance company disagrees because the tenant’s are not using the rented space to conduct customary operations.
2. ABC owns a building and occupies 35% of it to run its operations. The remaining 65% of the building is leased out the XYZ. XYZ decides to move out of the building, but left some equipment behind with intentions to pick it up at a later date. 65 days later a vandal breaks in, steals the left behind equipment of XYZ and then lights the building on fire.
Because ABC occupies more than 31% of its own building it is not considered vacant per the policy definitions. Therefore ABC’s insurance policy will afford coverage for its damaged building.
However, XYZ’s policy considers the building vacant because it no longer occupies its portion of the building and does not have enough business personal property at the premises to conduct customary business operations. Therefore XYZ has no coverage for its stolen equipment because under the vacancy provisions theft is an excluded coverage.
Please feel free to contact me with any questions or concerns.
Justin Robinson, CIC
The Buckner Company
Commercial property insurance policies include a condition that limits or excludes coverage when a building is vacant beyond a certain period of time.
DEFINITION OF VACANCY
Building Owner-
If the insurance policy is issued to a building owner then the building is considered vacant when at least 31% of its total square footage is:
1. Not rented to a lessee or sub-lessee and used by the lessee or sub-lessee
to conduct its customary operation; and/or
2. Used by the building owner to conduct customary operations.
Tenant-
If the insurance policy is issued to a tenant, and with respect to the tenants interest in the Covered Property, building means the unit or suite rented or leased to the tenant. The building is considered vacant when the tenant does not contain enough business personal property to conduct customary operations.
VACANCY PROVISIONS
If the building where loss or damage occurs has been vacant for more than 60 consecutive days before the loss or damage occurs: The policy will not generally pay for any loss or damage caused by any of the following even if they are Covered Causes of Loss:
1. Vandalism
2. Sprinkler leakage, unless you have protected the system against freezing’
3. Building glass breakage
4. Water Damage
5. Theft or
6. Attempted theft
With Respect to the Covered Causes of Loss other than those listed above (1-6), the policy reduces the amount we word otherwise pay for the loss or damage by 15%.
EXAMPLES
1. A building owner signs rental agreements with various tenants that will ultimately occupy 40% of the building. At the time of the loss only 10% of the building is actually occupied. The building owner thinks that the building isn’t vacant because the lease agreements are in place. However; the insurance company disagrees because the tenant’s are not using the rented space to conduct customary operations.
2. ABC owns a building and occupies 35% of it to run its operations. The remaining 65% of the building is leased out the XYZ. XYZ decides to move out of the building, but left some equipment behind with intentions to pick it up at a later date. 65 days later a vandal breaks in, steals the left behind equipment of XYZ and then lights the building on fire.
Because ABC occupies more than 31% of its own building it is not considered vacant per the policy definitions. Therefore ABC’s insurance policy will afford coverage for its damaged building.
However, XYZ’s policy considers the building vacant because it no longer occupies its portion of the building and does not have enough business personal property at the premises to conduct customary business operations. Therefore XYZ has no coverage for its stolen equipment because under the vacancy provisions theft is an excluded coverage.
Please feel free to contact me with any questions or concerns.
Justin Robinson, CIC
The Buckner Company
Monday, August 9, 2010
Digital Photocopiers Loaded With Secrets
Ignorance Is Bliss; Right?
Studies have shown that at least 60% of us out there didn’t know that our digital copiers stored information on its hard drive. I must admit that I was one of those persons. Since 2002 nearly all digital copiers stores an image of every document copy scanned or emailed. Please see the video below for the complete report.
Studies have shown that at least 60% of us out there didn’t know that our digital copiers stored information on its hard drive. I must admit that I was one of those persons. Since 2002 nearly all digital copiers stores an image of every document copy scanned or emailed. Please see the video below for the complete report.
Thursday, August 5, 2010
Wednesday, June 30, 2010
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