[RPPTL-constructionlaw] FW: Insurance and Surety Committee

Sun Dec 10 10:57:53 PST 2017

For those of you who called in for the Insurance and Surety Committee’s presentation on Friday, please see below and attached.  Also attached is the most recent issue of Insurance Matters! and the brochure for the ISC’s upcoming Fundamentals of Insurance speaker series.

Scott P. Pence | Carlton Fields
Board Certified in Construction Law by The Florida Bar
Direct: 813.229.4322 | Fax: 813.229.4133
4221 W. Boy Scout Blvd., Ste. 1000
Tampa, Florida 33607-5780
bio<http://www.cfjblaw.com/spence/> | vcard<http://www.cfjblaw.com/FCWSite/Features/_Attorneys/vCard.aspx?attorney=7> | linkedin<http://www.linkedin.com/in/pencescott>

From: liability_insurance-bounces at lists.flabarrpptl.org [mailto:liability_insurance-bounces at lists.flabarrpptl.org] On Behalf Of Pence, Scott
Sent: Sunday, December 10, 2017 1:17 PM
To: liability_insurance at lists.flabarrpptl.org
Subject: [Liability Insurance] Insurance and Surety Committee

Folks,

I hope you are having a good weekend and enjoying this cooler weather.

Please see below and attached from Steven Goodfellow, who spoke to us Friday on “The Most Dangerous and Common Insurance Coverage Mistakes”.  I’m also reattaching Mr. Goodfellow’s bio in case you want to reach out to him with any questions.

I’m also attaching the most recent issue of Insurance Matters! which, among other things, contains a very good article by our own Claramargaret Groover on the Recent Changes to AIA Standard Form Construction Insurance Provisions.

Finally, just a quick reminder that we will have one more meeting in 2017, on December 18th, which will be the first of our 6-part “Fundamentals of Insurance” speaker series where Cary Wright will present An Overview and Discussion of Commercial General Liability Insurance.   Attached is the brochure for that speaker series.  I will send a final reminder along with materials for the December 18th presentation prior to that meeting.

Regards,
Scott

Scott P. Pence | Carlton Fields
Board Certified in Construction Law by The Florida Bar
Direct: 813.229.4322 | Fax: 813.229.4133
4221 W. Boy Scout Blvd., Ste. 1000
Tampa, Florida 33607-5780
bio<http://www.cfjblaw.com/spence/> | vcard<http://www.cfjblaw.com/FCWSite/Features/_Attorneys/vCard.aspx?attorney=7> | linkedin<http://www.linkedin.com/in/pencescott>

From: Steve Goodfellow (BIRM) [mailto:steve.goodfellow at ioausa.com]
Sent: Saturday, December 09, 2017 5:42 PM
To: Pence, Scott
Subject: Power Point - Devastating Claims

Scott,

I thoroughly enjoyed being with you and your committee.  I am attaching the Power Point with a few comments/take-aways from each subject.

1.)     Sexual Harassment:  Purchase Employment Practices Liability including Third Party Discrimination and Sexual Harassment!.   Actually, the better buy is Directors and Officers Liability including this coverage, even for smaller, privately held companies;

2.)    Family Ties:  Reinforcing the need for Private Directors and Officers as indicated above;

3.)    The 39 Year Old Claim:  This case emphasized the need to seek coverage even if the policy is long expired.  However, once again, Private Directors and Officers coverage may have responded if coverage was not perfected.  Also, environmental impairment liability would respond if purchased prior to the sale of the property;;

4.)    Company Owned Autos:  Very common problem when owners choose to have their company buy the insurance n the family autos.  Must add Broad Form Drive Other Car Coverage and name every single family member of driving age by name and insure for liability and physical damage.

5.)    Preparation (H)urricane;  We didn’t get to this one, but the point of the discussion is to prioritize the wind and hail coverage purchasing decisions when Named Storms are an issue, such as in Florida;

6.)    Unemployed Employees:  Many companies today using payroll services (there are many) such as ADT that provide not only payroll services, but act as a Preferred Employer Organization (PEO).  By contract, every employee of the client becomes an employee of the PEO for the purposes of buying worker’s comp and benefits.  In this situation, the client MUST by an “if any” worker’s comp policy in its own name to cover those uninsured persons and events such as the case described.

7.)    Privacy Breach: explains all of the coverages that are easily packaged to protect your clients against hackers and cyber extortionists;

8.)    SCO hires LMC (Shopping Center Owner hires Larry, Moe and Curly):  We didn’t get to this one, but the moral of the story is that the best coverage available for the owner/developer is a Construction Wrap, but if too small, then require the contractor to provide Owner’s and Contractors Protective coverage.

9.)    Miscellaneous Topics;  These are three topics that I feel would be of vital interest to your committee, two of which would be very intriguing to the trusts and estates committee:

a.       Terrorism:  TRIA, the government program, has not paid 1 cent since its origin following 9/11/2001.  It’s a terrible buy.  Rather, buy coverage that includes domestic terrorism with an easily defined trigger.  A few programs, one of which is exceptional.  About the same price as TRIA;

b.      Lifestyle Investment:  IOA recently bought a company that has designed an extraordinary program for helping High Net Worth individuals

create wealth and retirement income through leverage and reduce the cost of insurance.  Our Chairman used this service and was so impressed that we bought the company.  The 3rd example shows how it works and still provides a 19.43% internal rate of return.  This example assumes the insured is age 50 and dies at 89 after taking $1,100,000 annual income from age 66 to death.  Premium was only $90,000 per year for 15 years plus significant borrowing.  The policy itself pays off all loans and interest at the end of the 15th year;

c.       Retirement Through Insurance Waivers;  IOA presents a captive program for apartment Owners.  By attaching a page to the lease, the Owner permits tenants to waive the requirement to provide $100,000 liability insurance for $11 per month.  $7.00 per month goes into the

owners mini-captive tax free, which can be owned personally.  Example is 5,000 units, 85% participate (typical) producing $6,000,000 plus investment income for Owner after 20 years.

Scott, I welcome discussions if anyone wishes to call or email:  404-271-3006 (Atlanta cell, but live in Orlando area);  Steve.goodfellow at ioausa.com<mailto:Steve.goodfellow at ioausa.com>.

With kindest regards,
Steve
Steve C. Goodfellow Ph.D., CPCU
Vice President, National Accounts
Winter Garden, FL 34787
404-271-3006
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