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Situation 1 – Contractual
Review/OSHA Compliance
 A
client that provides multiple services to the community resulting
in constant
pedestrian traffic in and out of their building contacted The Addis
Group in the morning to advise that scaffolding was being constructed
along the face of their building in conjunction with a large roofing
project. They were concerned about the safety to the public from
the erection of the scaffold.
Risk Management
Activity
By mid-day a Risk
Control Consultant from The Addis Group arrived on the site to inspect
the scaffold. In addition to inspecting the scaffold, egress in and
out of the building was evaluated and recommendations were made for
re-routing entry and exit in order to avoid the work zone. The Consultant
also requested to review the contracts and the contractor’s
Certificate of Insurance. During this review it was determined that
the actual scaffold contractor was a subcontractor to the roofer
and not named on the Certificate. After additional investigation
it was also determined that the scaffold contractor did not have
umbrella insurance and was not carrying adequate general liability
limits.
End Result
- The inspection
of the scaffold confirmed that the scaffold was constructed in compliance
with OSHA regulations thus providing a safe environment for the scaffold
and roofing crews.
- The client’s
customers and employees were provided a safe route for entering and
exiting the building reducing the client’s exposure to potential
general liability and workers' compensation claims.
- The client
was ultimately provided with proper contractual language insulating
the organization from liability arising out of the contractor’s
work. Additionally, adequate coverage and policy limits were required.
It was recommended that the job be shut down immediately.
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Situation
#2 – Insurance
Coverage Issue
 On
two separate occasions a major power company’s smoke stacks emitted a coal-slurry
material in the air, which eventually settled on The Addis Group’s
client’s property causing upwards of $600,000 of property damage.
The power company refused to accept responsibility for the damage.
Risk Management
Activity
The Addis Group’s
client filed a claim. Our Claim Manager promptly completed an investigation
and forwarded the documentation to the property carrier. The carrier
denied coverage based on a provision of the policy that stated, “coverage
resulting from the release of toxic or hazardous substances, contaminants
or pollutants is excluded”. The insurance company also cited
an exclusion whereby coverage was denied for claims caused by “the
result of continuous and repeated fallout from industrial/agricultural
operations”. The Claims Manager thoroughly reviewed the policy
stipulations and pointed out that the loss was not the result of
a continuous release, it was the result of two separate incidents.
The policy also contained a Hazardous Substances and Contaminants
Extension with a sub limit of $500,000.
End Result
Due to the persistence
and the thorough investigation and review of the issues pertinent
on the case, The Addis Group’s Claims Manager convinced the
carrier to rescind their denial of the claim. Policy limits were
afforded to the client under the terms of the policy.
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Situation
#3 – Insurance
Premium Issue
 A
large apparel distributor with multiple locations and warehouses
was about to receive
a large premium increase based on the property insurance carrier’s
concerns over the adequacy of the sprinkler system. The property
quote being offered for renewal was $700,000 along with mandatory
recommendations for sprinkler upgrades that would also be costly.
Risk Management
Activity
The Addis Account
Manager coordinated a sprinkler system review with the carrier, the
client and a sprinkler system expert. After assessing the system,
options were provided to the client. It was agreed that in addition
to actual system upgrades, storage configurations could reduce the
extent and costs needed to make the sprinkler system acceptable based
on the storage. The property insurance was marketed and the client
was offered a quote of $275,000, a $425,000 direct saving in premium
to the client. The carrier did make recommendations for sprinkler
system improvements; the estimate for the upgrades was approximately
$150,000.
End Result
- The Addis
Group was able to use its experience and reputation in the marketplace
to find excellent coverage at premium levels that were attractive
to the client.
- The client’s
sprinkler system was in need of repair in order to adequately address
the fire exposure presented in the warehouse. The Addis Group was
able to utilize a sprinkler system consultation to address these
concerns and present options to the client as opposed to accepting
without question the carrier’s recommendations.
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