risk & liability issues affecting landscaping contractors & arborists

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Risk & Liability Issues Affecting Landscaping Contractors & Arborists

Risk & Liability Issues Affecting Landscaping Contractors & Arborists

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Today’s Agenda

• Intro to NIP Group • Industry Overview • Specific Challenges faced by contractors • Benefits of Specialized Coverage • Overview of the LandPro/TreePro Program • Things to Look For, when preparing a

submission • Summary • Q&A

About NIP

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About NIP Group

• A “top 100” business insurance and risk management intermediary

• Provide a wide range of brokerage, underwriting, and risk management services

• Entrepreneurial, innovative, and responsive • Deep knowledge of key markets • 20+ years of providing agents with

exceptional coverage, competitive commissions, and fast, efficient service

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About NIP Programs

• Develop and manage customized business insurance for industries with specialized insurance and risk management needs Custom-tailored coverage for select markets Unique underwriting, loss control, and claims service

models, valued by both clients and insurers Underwritten by major insurers such as Travelers,

Chartis, Argo, AmTrust Market-specific expertise Stability through all market cycles

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NIP’s Programs

Employment Practices Liability Insurance

GlassPro® – for Glass Dealers and Installers

GrowPro® – for Greenhouses, Garden Centers and Nurseries

HVACPro® – for AC, Refrigeration, Heating or HVAC Contractors

IrrigationPro™ – for Providers of Irrigation and Pesticides for Lawns, Crops and Golf Courses

InteriorScapePro™ – for Contractors Providing Indoor Landscaping and Plant Maintenance

LandPro®/TreePro™ – for Landscapers and Tree Services Providers

LawnCarePro™ – for Lawn Care Service Providers

LightScapePro™ – for Lightscaping Contractors

MaintenancePro® – for Cleaning and Maintenance Services

MedEdge® – Affinity program for Physician Assistants and Optometrists

PetPro™ – for Pet Care Professionals

PlumbingPro® – for Commercial Plumbing Contractors

PowerPro® – for Electrical Contractors

SignagePro® – for Sign, Display and Awning Companies

SitePro® – for Excavation, Site Prep and Paving Contractors

WorkPro – Workers’ Comp

Industry Overview

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Industry Overview

Major Green Industry Segments • Landscape and Lawn Care Services • Tree Care Services • Nurseries and Greenhouse Growers

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Industry Overview

• Residential & Commercial Risks with at least 50% of work under following classes: 99777 – Tree Care Services

• Includes pruning, dusting, spraying, repairing, trimming, or fumigating

97047 – Landscape Gardening 97050 – Lawn Care Services

• Client Mix Commercial Residential Governmental Agencies Utilities

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Industry Overview

Tree Care Services (99777) • Pruning or Trimming • Tree Removal • Tree Repair/Cabling • Stump Removal or Grinding • Other Exposures Common to Arborists

Firewood and Mulch Sales Green Waste Recycling Snow Removal

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Industry Overview

Landscape Gardening (97047) • Preparation of grounds • Installation of lawns, trees, shrubs, flowers

• Mulching • Spraying of pesticides and herbicides

• Application of fertilizers Other exposures common to landscapers • Interior landscape/plantscaping

• Nursery • Snow Removal

Construction Not Related to Buildings1

• Irrigation • Fences/Decks • Outdoor patios • Retaining walls • Masonry • Outdoor kitchens/BBQ pits • Concrete/cement work • Driveway paving

1 Limit up to 25% residential construction for risks in CA, AZ, NV

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Industry Overview

Lawn Care Services (97050) •Mow-and-Blow •Edging •Application of fertilizer •Incidental pesticide or herbicide applications (typically OTC)

•Weeding

•Incidental replacement of plants

•Replacement of mulch •Other exposures, i.e. Snow Removal

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Exposures and Hazards

Exposures Vary by Company • Company size • Products or services offered • Seasonal conditions • Relationships to customers

Typical Exposures Include • Slips, trips, falls, fire, adverse weather, natural

catastrophes • Heavy equipment hazards, work zone safety, use of

cranes, etc.

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Claim Examples

General Liability • Lawnmower throws a rock and breaks a third party’s window • The insured dug too deep, resulting in damage to underground

utility line

Errors & Omissions • Arborist cuts-down the wrong tree or overprunes it • A landscaper aerates the lawn and it immediately dies.

Pesticide or herbicide application • A woman walks by in bare feet and has resulting burns on her feet

from the pesticide that was accidentally over sprayed • A neighbor’s car finish is damaged by pesticides the landscaper

applied that had been blown by the wind.

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Claim Examples

Auto • Vehicle rented by the insured is involved in an accident caused by

the insured and requires repair. • A third party’s vehicle is damaged by a chipper that broke loose

from insured’s vehicle

IM • The chipper that broke loose from the insured’s trailer is inoperable

and requires repair or replacement. • Unknown subject broke into the insured’s storage yard and stole

insured’s mower and small tools.

NIP’s LandPro®/TreePro

TM

An Overview

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The Solution

The Complete Coverage Solution • Commercial General Liability

• Property

• Contractors’ Equipment

• Crime

• Business Auto

• Umbrella

• Workers’ Comp (via WorkPro)

• ISO-Based

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The Solution

Commercial General Liability • AmTrust North America

Experienced and Dedicated Claims Adjusters Fully Automated Systems Available 24/7/365

Standard Coverages • General Liability up to $1M / $2M • Property up to $1M • Inland Marine up to $1M • Umbrella Liability up to $5M • Crime up to $100k • Workers’ Comp (Statutory Limits)

Specialized Coverages • Blanket additional insured including Primary Wording • Blanket additional insured with completed operations

(available for qualifying risks.) • Waiver of Subrogation is included • Per project aggregate • Limited Pollution Liability Extension Endorsement • Pesticide or Herbicide Applicators Endorsement • Landscapers or Arborist Workmanship Error –

Property Damage • Now includes consulting services

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The Solution

Business Auto Standard Coverage • Liability

• Symbol 1 (for qualifying risks)

• PIP • UM/UIM • Comprehensive and collision

• For scheduled and hired vehicles

• Optional Coverages • Rental Reimbursement • Towing and labor • Pollution buyback • Drive other car

Enhanced Coverage Endorsements • Blanket Waiver of Subrogation • Blanket Additional Insured • Employee Hired Auto • Employee as Insured • Personal Effects Coverage • Waiver of Deductible – Glass • Auto Loan Lease Gap Coverage • Unintentional Errors or Omissions • Lessors As Insureds • Hired Auto Physical Damage Coverage • Electronic Equipment • Rental • Primary & Non-Contributory Wording if required by contract

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The Solution

Property, Equipment, & Crime Property • Building • Contents • Time element

Additional benefits including • Accounts Receivable • Computer Breakdown • Demolition and Increased Cost of Construction • Extra Expense • Fine Arts • Fire Department Service Charge • Inventory and appraisal • Money or Securities • Newly Acquired Building & Business Personal Property • Other People’s Property • Outdoor Property • Personal Belongings • Pollutant Cleanup or Removal • Random Attack – Hacking Event or Computer Virus • Sewer Backup or Overflow • Temporary Location • Valuable Records Research

Contractors’ Equipment • Scheduled • Unscheduled equipment/misc tools • Leased/ Rented Equipment • Replacement cost for items less the 5 years of age • Coverage for cranes and tub grinders • Installation Floater

Crime • Employee Dishonesty • ERISA • Forgery or Alteration • Theft, Disappearance, destruction • Robbery and Safe Burglary

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The Solution

Ineligible Exposures • Logging Operations • 100% Consultation work • Demolition work • Subcontracted work greater than 50% • Agricultural Crop Spraying • Aircraft spraying of any kind • Snow/ice removal - predominantly • Street or road snow/ice removal • <75% utility line clearing • Work for new tract housing developments • Work for new multi-unit residential units

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Why NIP?

• Over 20 years of green industry experience • Custom coverage designed to fill gaps left by

standard programs • Expert claims handling from a dedicated claims

director • Experienced underwriters who understand your

client’s business • Flexible payment plans

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NIP’s LandPro®/TreeProTM Program

Submission Content • ACORD Applications for all lines requiring quote • Completed LandPro/TreePro Supplemental Questionnaire (Package and/or WC) • 4 Years Currently-Valued Loss Runs • Current Driver List and MVRs • Target Pricing • Copy of snow contract if requested (only for other than private single family)

Worker’s Comp • Description of Safety Initiatives, hiring practices, return-to-work, drug-testing, etc. • Exp. Mod. Worksheet (if available)

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NIP’s LandPro®/TreeProTM Program

Our Primary Carrier Partner AmTrust North America

Claims Staff with an average of 20+ years of experience

Adjusters that maintain low workloads, for effective claims management

A Fully Automated Claims System

24/7/365 Centralized Call Center

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Other Considerations

Admitted vs. Non-Admitted Carriers • LandProTreePro is underwritten only by Admitted

carriers with “A” ratings by A.M. Best Classification Limitation Endorsement

• Only covers insured for operations specifically described in the description of hazards section of GL policy

GL is usually 100% minimum earned • Markets have occasionally reduced it to 90%, even 80

Summary

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Summary

LandPro/TreePro provides • Outstanding coverage, tailored to specific needs of

landscaping contractors and arborists • Strength and reputation of AmTrust

• Backed by 20+ years of experience in providing specialized programs tailored to the unique needs of select classes of business

• Stability through all market cycles • NIP awarded “Best Practice Designation” by TargetMarkets

Questions?

Thank You!

FOR MORE INFO

Melissa Dreyer mdreyer@nipgroup.com (800) 446-7647 x 294 - telephone