Chapter 17 Construction Insurance Flashcards
Subrogation
Insurance Co. Can seek recovery from the third party that was responsible for causing the loss.
Premiums
Payment or consideration for the Insurance Co.
Dividends
Measure of Success.
Loss Ratio
The level of success in minimizing losses
Self Insurance
C plays role of an Ins. Co.
(Less expensive route) However, Co. Must qualify by law. Not all Co. Can be self Ins.
Wrap-Up Insurance
Insurance coverage for project that is provides by one insurance co.
Benefits
In workers comp
Medical expenses, hospitalization cost, disability payments
Reserves
When case or claim may extend into future with unknown cost impacts.
Ins. Co. Set aside an estimated amount of money from which the claimant will be paid. This amount in the reserve account is considered when assessing the C’s Losses.
Worker’s Comp. fraud
Fake injuries
Retrospective Ratings plans/
Takes into account an insured’s loss record and adjusts the premiums to reflect the results.
Reporting Losses
Whenever there’s an injury, Ins. co. Must be informed.
Employer’s liability policy
Protects Employer against any obligations the employer may have under w/c law
Key man Ins.
Obtained on Co. Principals against losses that can result from death of a principal.
Benefits of Key man Ins.
3 total
- buying deceased interest from the firm
- providing a means for Co. to continue paying salary to family
- ensuring financial ease of getting a successor
Standard builders risk
Policy that protects the project against fire and lightning.
