Protecting Your Assets

Insurance for the Diplomatic Community

Martin KolesAquilan Worldwide Risk Management LLC131 Alta Ave., Yonkers, NY 10705718-830-5311; diplomat@mkoles.com

ScopeWhy you need insurance

What types of insurance are available

How much insurance is required important to have for special circumstances

Strategies for getting the best coverage and price

CAVEATEMPTOR(let the buyer beware)

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Insurance PolicyDeclarations

Who is insured and for how much

Insuring AgreementWe promise to pay

ConditionsYour obligations

ExclusionsWhat is not covered

For Information

Only

Who is Insured

Insurance Company

How Much Insurance

Types of Insurance

How Are You Protected

Description of Operations

Your Name and Address

Policy Period

Certificates of Insurance

Designated PremisesContractual Limitation

Medical PaymentsWater Damage

Mold & MildewAsbestos

Wind or HailFlood

Common Exclusions

Insurance Industry Performance

Why You Need InsuranceREQUIRED BY LAW

Autos - Workers Compensation

REQUIRED BY CONTRACTPremises Lease - Leased Equipment

PROTECT GOVERNMENTAL ASSETSBuildings – Homes – Contents – Art - Extra Expense

PROTECT PERSONAL ASSETSYour Possessions

LEGAL PROTECTIONDefense and Indemnification

Commercial Personal Life / Health

Property Homeowners Personal Health

Casualty Auto Group Health

Auto Personal Articles Employee Benefits

Workers Compensation Special Needs

Special Events

FireWindstorm

Water DamageTheft

Explosion

Smoke

Sprinkler Leakage Snow & Ice

Property Insurance

Special Form Loss to covered property from all causes except those that are specifically excluded.

Replacement CostThe cost to replace the damaged property with materials of like kind and quality with out any deduction for depreciation

CoinsuranceA penalty assessed upon a loss if the amount of insurance purchased is not at least equal to s specified percentage of the total replacement value

Agreed ValueSuspends the coinsurance clause. You and the insurance company agree the amount is insurance is sufficient settlement.

Extra Expense Coverage for the additional cost incurred to continue operations while the property is being repaired

Equipment BreakdownCoverage for loss to mechanical or electrical breakdown of equipment including resulting extra expense. Generally added by endorsement or a separate policy.

www.irmi.com/online/insurance-glossary

Property Terms

All Risk WorldwideValuable Articles

Liability Insurance

Immunity?Persons enjoying immunity from the

jurisdiction of the host country’s laws are nonetheless obligated to respect those laws.

While you may have full criminal immunity and may not be arrested, you

can be sued.

Does not extend to your landlord.

If you lease premises, your landlord will require liability protection as a condition of

occupancy.

If you lease equipment, the lessor will require loss protection.

Don’t sign any lease until it is reviewed by your attorney and insurance representative.

Tenant shall obtain and keep in full force and effect a policy of comprehensive general public liability and property damage insurance on an occurrence basis with a broad form contractual liability endorsement. Such policy shall provide that Tenant is named as the insured. Landlord, Landlord’s managing agent and any Lessors and any Mortgagees shall be added as additional insureds. Such policy shall include a provision under which the insurer agrees to indemnify and hold Landlord, Landlord’s managing agent, and such Lessors and Mortgagees harmless from and against all cost, expense and/or liability arising out of or based upon any and all claims, accidents, injuries and damages. In addition, the policy will not be cancelled by the Tenant unless replaced on the same date, without any lapse in coverage, with an insurance policy offering protection to the Landlord and the named insureds in accordance with the provisions of this Lease. In addition, upon receipt by Tenant of any notice of cancellation or any other notice from the insurance carrier which may adversely affect the coverage of the insureds under such policy of insurance, Tenant shall immediately deliver to Landlord a copy of such notice. The minimum limits of liability under the policy of insurance required to be carried shall be a combined single limit with respect to each occurrence in an amount of not less than $5,000,000 for injury (or death) to persons and damage to property, which amount shall be increased from time to time to that amount of insurance which in Landlord’s reasonable judgment is then being customarily required by prudent landlords of first-class non-institutional office buildings. All insurance required to be carried by Tenant pursuant to the terms of this Lease shall be primary and be effected under valid and enforceable policies issued by reputable and independent insurers permitted to do business in the State and rated in Best’s Insurance Guide, or any successor thereto as having a general policyholder rating of “A” and a financial rating of at least “VIII”.

Liability Insurance

to protect the landlordagainst all claims and damages

amount $5 Million

on a primary basis

with a reputable insurance company

Sample Simple Lease

Overly restrictive language

Excessive Limits of Insurance

Impossible Conditions

Outdated Terminology

Illegal Practices

Commercial Lease Pitfalls

The 1978 Diplomatic Relations Act and the Foreign Missions Act require that all motor

vehicles owned and operated in a US jurisdiction by a member of the foreign

diplomatic community carry liability insurance coverage at all times.

Liability $300,000 combined single limit or Split limits of $100,000 personal injury per

accident and $100,000 property damage per accident

XYZ

Applies to business autos and individual owned autos.

Auto Insurance

COVERAGE LIMITBodily Injury and Property Damage $300,000 Per AccidentMedical Payment $1,000 Each PersonPersonal Injury Protection (no fault) $50,000 Per PersonAdditional No Fault $25,000 Per PersonUninsured Motorist Protection $100,000 Per AccidentUnderinsured Motorist Protection $100,000 Per AccidentCollision Actual Cash Value After $1,000 deductibleOther Than Collision Actual Cash Value After $1,000 deductibleTowing & Labor $50 Per DisablementRental Reimbursement $40 Per Day

The Auto Policy

Workers CompensationForeign Governments are not required to provide  workers’ compensation coverage* for the individuals working in America for those foreign governments as long as they are performing strictly governmental work for the foreign government and are not engaged in any commercial activity for that foreign government.

Example: A US citizen working for the Consulate performing strictly governmental work  and not engaged in any commercial activity would not be required to be covered by a workers’ compensation policy.Please note that any individuals from a foreign government that are working on a commercial venture in must be covered by a workers’ compensation insurance policy.

* In New York State

Conference

Election Venues

Builder’s Risk

Art Shows

Special Circumstance Insurance

Personal Insurance

Strategies for SuccessInsurance companies have no loyalty to you

Agents vs Brokers

Evaluate your needs and design the policy you need

Bring on the competition

It’s not just the cost- negotiate coverage

• Caveat Emptor• Read Your Policy• Required for Autos, Leases, Certain

Workers• Recommended for Offices, Homes,

Possessions• Provides Legal Defense• Engage Competition

Insurance for the Diplomatic Community