Describes the differences in coverage based on the insurance policy you have decided to invest in.

1. Building Wide
Insurance Coverages
Mackoul & Associates, Inc.
214 West Park Avenue | Long Beach, NY 11561 | Tel: (516) 431-9100 | Fax: (516) 431-4641

2. Building Wide
Insurance Coverages
Commercial Property
1. Building-
Covers the building from damage caused by covered perils
(ex. Fire, Wind, Lightning)
• How Determined -
Construction, Square Footage, Building Information
• Special Form vs. Broad/Basic Form -
Included unless Excluded vs. Named Perils
• Replacement Cost -
e cost to rebuild the building at today’s cost
• Actual Cash Value -
Replacement Cost minus Depreciation
• Guaranteed Replacement Cost -
Does anyone really o er this?
• Coinsurance -
It’s a penalty!!!
• Agreed Amount -
2. Business Personal Property/Contents -
Waives Coinsurance
Covers contents owned by the building or required
to be insured by contract from a covered peril
• Board Room Tables and Chairs
• Lobby Furniture
• Laundry Equipment
• Storage Bins
3. Loss of Business Income -
Covers loss of income from a covered peril
• Maintenance Fees
• Other lost income such as laundry machines,
parking garages and rent from commercial occupants
Di erences in Conditions -
Back-up of Sewers & Drains- Water that backs up from a sewer or drain.
•
Broad Form Water - Leakage or seepage into the building, back-up of sewers and drains and underground water mains.
•
Flood - Flood, surface water, waves, overflow of a body of water and/or the spray from the water. May also include back up of sewers and
•
drains, and underground water mains.
Earthquake - Earthquake and Volcanic Eruption.
•
Ordinance or Law -
•
Coverage A - Loss to the Undamaged Portion of the Building - Value of the undamaged portion of the building
Coverage B - Demolition Cost - Cost to demolish the undamaged portion of the building
Coverage C- Increased Cost of Construction - Cost to bring the building up to code in the event of a claim
4. Other Factors -
Mold- Clean up costs triggered as a result of a covered claim
•
Certi ed Acts of Terrorism- Elect or reject?
•
Mackoul & Associates, Inc.
214 West Park Avenue | Long Beach, NY 11561 | Tel: (516) 431-9100 | Fax: (516) 431-4641

3. Building Wide
Insurance Coverages
General Liability
1. Occurrence/Aggregate-
Maximum to be paid in any one occurrence / Maximum to be paid
in any policy year
• Bodily Injury - Injury to someone
• Property Damage - Damage to someone’s property
• Personal Injury and Advertising Liability -
Libel, Slander & Defamation of Character
• Products & Completed Operations -
Defective Product or Faulty Workmanship
2. Fire Damage or Tenants Legal Liability -
• Does not apply to a co-op or condominium.
• Covers fire damage to space rented or leased by
the insured.
3. Medical Payments -
First aid, ambulance, etc.
4. Hired/Non-Hired Auto Liability -
• Auto’s hired or non-owned.
• A requirement of the Commercial Umbrella.
5. Employee Bene ts Liability -
Covers lawsuits for negligent acts or omissions
in regards to employee benefits
(Group Health, Group Life, etc.)
6. Garage Keepers Legal Liability -
Coverage for automobiles le in custody.
7. Other Factors -
Mold - ird party lawsuits resulting from a covered incident.
•
Lead - A necessity or icing on the cake?
•
Certi ed Acts of Terrorism - Necessary?
•
Admi ed vs. Non-admi ed -
•
No recourse with State Insurance Department
Not eligible for Guaranty Fund
Not subject to rate and form filing requirements
Mackoul & Associates, Inc.
214 West Park Avenue | Long Beach, NY 11561 | Tel: (516) 431-9100 | Fax: (516) 431-4641

4. Building Wide
Insurance Coverages
Systems Breakdown (Boiler & Machinery) -
• Covers physical and financial damage from covered equipment failure, such as the cost to repair, time
and labor, work done to limit the loss/speed restoration, spoiled products and recovery expenses
• Covers equipment such as: heat and hot water boilers, air conditioning systems, electrical distribution
systems, elevators and security systems
Crime/Employee Dishonesty/Fidelity Bond -
• Theft of funds or property by an employee or board member.
Managing Agent Rider - why needed?
•
Commercial Umbrella -
• Provides excess coverage over:
General Liability, Directors & O cers Liability and Employers Liability
No, it does not provide extra building coverage!!!
•
Retained Limit - Not a deductible.
•
Directors & O cers Liability -
• 70% of all D&O lawsuits are lodged in New York, New Jersey, Florida, Texas and California
• 65% of all coops and condos in New York City know of a situation that could lead to a suit against the board.
• A suit against the Board naming each Director places that person in financial jeopardy because their personal assets are at stake
• All lawsuits must be defended regardless of merit and legal expenses are very costly.
• Legal expenses for discrimination lawsuits range from $100,000 to $500,000
• Many D&O lawsuits are not for monetary damages!!!
• Court requests are made for “Injunctive Relief and Declaratory Judgment,” yet still must be defended.
Most common D&O lawsuits involve allegations of:
•
Wrongful Termination
Discrimination (Race, Religion, and Employment)
Defamation of Character
Breach of Contract
Renovations
Noise
Subleasing
Pets
• Not all policies are created equal!!! Quality of coverage is paramount
• Management firms needs to be an insured under the contract
Environmental Policies -
Pollution - Lead, asbestos, and other pollutants
1.
Site speci c - Fuel tank
2.
Workers Compensation -
1. Sickness or injury as a result of the job
2. Required by New York State
3. Based upon payroll and job classification
New York State Disability -
1. Sickness or injury as a resulting off the job
2. Required by New York State
Mackoul & Associates, Inc.
214 West Park Avenue | Long Beach, NY 11561 | Tel: (516) 431-9100 | Fax: (516) 431-4641