Vacancy/Occupancy Clauses; Protective Safeguards Endorsements

Adjusting Today Basis for Institutes CE Courses The Institutes, the leader in providing knowledge solutions for risk management and the property/casualty insurance industry, offers continuing education courses based on technical information compiled from issues of Adjusting Today. The courses — “Valuing a Property Insurance Claim” and “Natural Disasters: Coverage Issues”— include seven modules each and are approved for credit by insurance departments in most states. They are offered to property insurance producers, adjusters or both, depending on the state, for up to three continuing education credit hours per course. More information is available at Robert Prahl has more than 30 years of experience in the insurance business, primarily in claims and claims training. He began his career as an adjuster in the New York metropolitan area and eventually became a claims manager and claims training director. He has written extensively on insurance issues, having authored two text books for the Insurance Institute of America and previously served as a columnist for Rough Notes magazine, an insurance trade publication. Robert J. Prahl, CPCU ____________________ 1 Protective Safeguards Endorsements to Property Insurance Policies May Pose Unanticipated Risks for Landlords, Tenants, and Others, August 1, 2009, Charles D. Calvin, Rikke A. Dierssen-Morice, Charles S. Ferrell, Faegre & Benson, LLP, Attorneys at Law. 2 This case was discussed in the March 2010 issue of Malecki On Insurance, Volume 19, Number 5. 3 Expressed simply, a summary judgment is a determination made by a court without a full trial. Such a judgment may be issued as to the merits of an entire case, or of specific issues in that case. Any party may move for summary judgment; it is not uncommon for both parties to seek it. If the court denies the summary judgment, the litigation may continue, a party may withdraw, the parties settle, or another summary judgment or later motion ends the lawsuit. ABOUT THE AUTHOR was not entitled to summary judgment3 on this ground. This case was settled prior to depositions for $55,000. Conclusion Admittedly, there are cases when a court will rule in favor of an insured with a protective safeguard device or service that was inoperable, where extenuating circumstances exist. But such cases appear to be rare. This should be a warning to commercial insureds as well as to agents and brokers, that they need to understand — and the latter needs to explain — the implications of this endorsement if the safeguards device is not installed or is inoperable at the time of loss. Insureds should keep detailed records concerning when and how safeguard devices have been serviced and maintained. Being able to demonstrate a consistent maintenance schedule for such devices, while not a guarantee that the insured will prevail should a safeguard device fail or become impaired, may at least reduce the risk that a loss will occur. CORPORATE OFFICE 126 Business Park Drive Utica, New York 13502 800.382.2468 Outside U.S. (315) 797.3035 FAX: (315) 272.2054 Copyright © 2014 Adjusters International, Inc. Adjusters International ® and the AI logo are registered trademarks of Adjusters International, Inc. Follow Adjusting Today on Facebook & Twitter: ADJUSTING TODAY is published as a public service by Adjusters International, Inc. It is provided for general information and is not intended to replace professional insurance, legal or financial advice for specific cases. ADJUSTINGTODAY Adjust ingToday. com View our entire catalog of back issues, download PDF versions, subscribe and contact the editor. WEB ADDRESSES PUBLISHER Ronald A. Cuccaro, SPPA EDITOR Sheila E. Salvatore AT14 3045