risk & liability issues affecting landscaping contractors & arborists
DESCRIPTION
Overview of the landscaping and tree service industries, specific challenges and benefits of specialized coverage.TRANSCRIPT
WEBCAST
Risk & Liability Issues Affecting Landscaping Contractors & Arborists
Risk & Liability Issues Affecting Landscaping Contractors & Arborists
Page 2
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
Page 4
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
Page 5
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
Page 6
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
Page 8
Industry Overview
Major Green Industry Segments • Landscape and Lawn Care Services • Tree Care Services • Nurseries and Greenhouse Growers
Page 9
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
Page 10
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
Page 11
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
Page 12
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
Page 13
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.
Page 14
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.
Page 15
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
Page 17
The Solution
The Complete Coverage Solution • Commercial General Liability
• Property
• Contractors’ Equipment
• Crime
• Business Auto
• Umbrella
• Workers’ Comp (via WorkPro)
• ISO-Based
Page 18
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
Page 19
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
Page 20
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
Page 21
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
Page 22
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
Page 23
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)
Page 24
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
Page 25
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
Page 27
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?
