Building Wide Ins Coverages

Mackoul & Associates, Inc. 214 West Park Avenue | Long Beach, NY 11561 | Tel: (516) 431-9100 | Fax: (516) 431-4641

Building Wide Insurance Coverages

Commercial PropertyBuilding1. - Covers the building from damage caused by covered perils (ex. Fire, Wind, Lightning) • How Determined - Construction, Square Footage, Building Information• Special Form vs. Broad/Basic Form - Included unless Excluded vs. Named Perils• Replacement Cost - � e cost to rebuild the building at today’s cost• Actual Cash Value - Replacement Cost minus Depreciation• Guaranteed Replacement Cost - Does anyone really o� er this?• Coinsurance - It’s a penalty!!!• Agreed Amount - Waives Coinsurance

Mackoul & Associates, Inc.214 West Park Avenue | Long Beach, NY 11561 | Tel: (516) 431-9100 | Fax: (516) 431-4641

Building WideInsurance Coverages

Business Personal Property/Contents - 2. Covers contents owned by the building or required to be insured by contract from a covered peril • Board Room Tables and Chairs• Lobby Furniture• Laundry Equipment• Storage Bins

Loss of Business Income 3. - Covers loss of income from a covered peril• Maintenance Fees• Other lost income such as laundry machines, parking garages and rent from commercial occupants

Di� erences in Conditions - • Back-up of Sewers & Drains- Water that backs up from a sewer or drain. • Broad Form Water - Leakage or seepage into the building, back-up of sewers and drains and underground water mains. • Flood - Flood, surface water, waves, overfl ow of a body of water and/or the spray from the water. May also include back up of sewers and drains, and underground water mains.• Earthquake - Earthquake and Volcanic Eruption. • Ordinance or Law - Coverage A - Loss to the Undamaged Portion of the Building - Value of the undamaged portion of the building Coverage B - Demolition Cost - Cost to demolish the undamaged portion of the building Coverage C- Increased Cost of Construction - Cost to bring the building up to code in the event of a claim

Other Factors - 4. • Mold- Clean up costs triggered as a result of a covered claim• Certi� ed Acts of Terrorism- Elect or reject?



General LiabilityOccurrence/Aggregate1. - Maximum to be paid in any one occurrence / Maximum to be paid in any policy year • Bodily Injury - Injury to someone• Property Damage - Damage to someone’s property• Personal Injury and Advertising Liability - Libel, Slander & Defamation of Character• Products & Completed Operations - Defective Product or Faulty Workmanship

Fire Damage or Tenants Legal Liability 2. - • Does not apply to a co-op or condominium. • Covers fi re damage to space rented or leased by the insured.

Medical Payments - 3. First aid, ambulance, etc.

Hired/Non-Hired Auto Liability4. - • Auto’s hired or non-owned. • A requirement of the Commercial Umbrella.

Employee Bene� ts Liability - 5. Covers lawsuits for negligent acts or omissions in regards to employee benefi ts (Group Health, Group Life, etc.)

Garage Keepers Legal Liability - 6. Coverage for automobiles le� in custody.

Other Factors - 7. • Mold - � ird party lawsuits resulting from a covered incident.• Lead - A necessity or icing on the cake?• Certi� ed Acts of Terrorism - Necessary?• Admi� ed vs. Non-admi� ed -

» No recourse with State Insurance Department» Not eligible for Guaranty Fund» Not subject to rate and form fi ling requirements



Systems Breakdown (Boiler & Machinery) - • Covers physical and fi nancial damage from covered equipment failure, such as the cost to repair, time and labor, work done to limit the loss/speed restoration, spoiled products and recovery expenses• Covers equipment such as: heat and hot water boilers, air conditioning systems, electrical distribution systems, elevators and security systems

Crime/Employee Dishonesty/Fidelity Bond - • Th eft of funds or property by an employee or board member.• Managing Agent Rider - why needed?

Commercial Umbrella - • Provides excess coverage over: General Liability, Directors & O� cers Liability and Employers Liability • No, it does not provide extra building coverage!!!• Retained Limit - Not a deductible.

Directors & O� cers Liability - • 70% of all D&O lawsuits are lodged in New York, New Jersey, Florida, Texas and California• 65% of all coops and condos in New York City know of a situation that could lead to a suit against the board. • A suit against the Board naming each Director places that person in fi nancial jeopardy because their personal assets are at stake• All lawsuits must be defended regardless of merit and legal expenses are very costly.• Legal expenses for discrimination lawsuits range from $100,000 to $500,000• Many D&O lawsuits are not for monetary damages!!!• Court requests are made for “Injunctive Relief and Declaratory Judgment,” yet still must be defended.• Most common D&O lawsuits involve allegations of: » Wrongful Termination » Discrimination (Race, Religion, and Employment) » Defamation of Character » Breach of Contract » Renovations » Noise » Subleasing » Pets• Not all policies are created equal!!! Quality of coverage is paramount• Management fi rms needs to be an insured under the contract

Environmental Policies - 1. Pollution - Lead, asbestos, and other pollutants2. Site speci� c - Fuel tank

Workers Compensation - 1. Sickness or injury as a result of the job2. Required by New York State3. Based upon payroll and job classifi cation

New York State Disability - 1. Sickness or injury as a resulting off the job2. Required by New York State

Building Wide Ins Coverages

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