Please see below for our frequently asked questions.
Will policy insure against first and third party claims?
Yes, our policy provides first and third-party coverage for pollution. First Party: Discovery of Pollution Conditions on, at, under or migrating from a covered location. Third Party: Loss resulting from a Pollution Condition on, at, under or migrating from a covered location and claim is made and maintained against the Certificate Holder.
Will the carrier subrogate?
Yes the carrier can subrogate: Section V. Conditions. Item K. Subrogation states the Company shall be subrogated to all the Certificate Holder's rights of recovery against any person or organization.
Are Punitive Damages Covered?
Yes. Punitive, exemplary, or multiplied damages are covered where allowable by law.
Are limits shared with other group members?
No. There are no shared limits. Each insured have their own limits.
Does each insured receive their own policy?
Yes, each individual receives a copy of the group policy, with their corresponding certificate. The Certificate, which looks like a declaration page, will display the name insured, address, policy period, limit of liability and a schedule of covered locations. Each Certificate holder has their own limits which are not impaired by claims presented by other certificate holders.
If we have a pollutant escape from an underground storage tank that we were not aware of, will the policy provide coverage?
Coverage is afforded for both unknown and scheduled tanks. There is coverage for "phantom" tanks which are unknown to the Certificate Holder.
Do all tanks qualify for this coverage?
Only tanks 20 years old and newer can be scheduled. However if the pollution is caused by an unknown tank, the policy will provide coverage, regardless of age. Age limitation is for KNOWN tanks only.
Will your umbrella sit excess of a builder/developer on an association board?
Yes, we do not restrict builder/developers from coverage. This is a significant enhancement from some other programs. However, no coverage will be provided for any new construction. Construction defects will be excluded on the policy.
Do you have any height restrictions for Associations?
Yes. We have in-house authority for buildings up to 35 stories. Buildings exceeding 35 stories are referred to carrier for consideration.
Does my insured receive their own policy?
Yes, each individual association is given their own policy containing an individual policy number. It includes the associations name(s), address, underlying limits, and applicable coverages with all endorsements attached. Each association will have their own limits. The limits are not shared; so long as the members' primary Commercial Liability coverage has a per location limit (without CAPs), our policy will follow form -- right up to the full excess limit for each and every location!
Is there a common anniversary date for the program?
No, each insured will receive a policy which corresponds to their underlying expiration dates for concurrency.
My insured is currently coming out of another program with a common anniversary date, any suggestions as to handle this?
We can issue either a short term or long term policy to enable your client to have their policies run concurrent.
Why is there a membership fee?
The membership fee goes to the cost of licensing, administration and registering the different programs in the various states approved.
How do we know a Purchasing Group is permitted in our client's state(s)?
Preferred Property Program® is registered in all states except GA. Our Compliance Department maintains current information about Purchasing Groups filing requirements and handles all necessary paperwork on behalf of the Groups and their members.
Is there a Self Insured Retention?
Our policy is excess only form and we follow the primary underlying policies, unless specifically excluded. However our policy does not provide coverage B.
Is Employment Practices Legal Liability Covered?
Yes, under coverage A (follow form section), when EPLI coverage is provided under a scheduled D & O policy. This coverage is available for Community Associations only (no apartment or Lessor Risk policies) and this coverage is not available in our Chubb Group of Insurance Companies $25Mil excess of $25Mil layer.
Will Spinnaker Ins/Spinnaker Specialty write over any underlying policy?
All underlying policies must have an A.M. Best rating of A-7 or better. Lloyds of London and any of its affiliates are not acceptable in the program.
Are Timeshares/Resorts eligible?
No. Timeshares types of risks are currently not eligible for the program.
Is there coverage for the Property Manager?
Yes. The Property Manager is protected for their Errors and Omissions while acting at the direction of the named insured. Property Managers should have their own Professional Liability policy to protect against their own Errors and Omissions.
Is Hired Non Owned Auto coverage automatically covered?
That depends on a few factors: When HNOA exposures are for private passenger vehicles, light or medium trucks only; yes, coverage will be provided. Risks with HNOA exposures of heavy trucks, passenger vans or passenger buses must have an underlying auto policy with minimum limits of $1,000,000; or HNOA sub-limit of $1,000,000 on the GL policy in order to be covered. If no auto policy or sub-limit in place, risk must be referred to the carrier for approval. Kindly indicate type of HNOA exposure when submitting application.
