Eligible Classes
Class Code	Classification
11207 Equipment Rent w/ Operator 91111 Air Conditioning 91150 Appliance Installation Commercial 91155 Appliance Installation Residential 91315 Cable or Subscription TV Installation 91340 Carpentry Residential 91341 Carpentry Interior 91342 Carpentry Commercial 91343 Carpentry Wood - Shop Work 91344 Carpentry Handyman 91405 Carpet Upholstery Cleaning 91436 Ceiling/Wall Installation Metal 91523 Cleaning, Outside Bldg. 91523 Communication Equipment Installation 91560 Concrete Construction 91577 Conduit Construction 91580 General Contractor - Comm/Res 91629 Debris Removal 91746 Door Millwork Installation Metal 92101 Drilling NOC 92102 Drilling - Water 92215 Driveway Sidewalk Pave 92338 Drywall 92451 Electrical Equip, Exterior 92478 Electrical Within Buildings 94007 Excavation 94276 Fence Erection 94569 Floor Covering - No Tile 95124 Furniture Install 95410 Grading 95505 Guniting - Shotcrete 95555 GC Remodel 95647 Heat / AC 95648 HVAC Dealers, Distributors and Installation 96053 House Furnishings Installation 96409 Insulation 96410 Insulation Mech Install 96611 Interior Decorators 96816 Janitorial Commercial 97047 Landscape Gardening 97050 Lawncare Artisan Contractor 97447 Masonry 97650 Metal Erection Decorative 97653 Metal Erection Artisan Contractor 97655 Metal Erection Structural 98304 Paint Exterior 98305 Paint Interior 98344 Paperhanging 98449 Plaster Stucco 98482 Plumbing Commercial 98483 Plumbing Residential 98502 Prefabricated Building Erection 98636 Refrigeration Equipment Installation 98677 Roofing Commercial 98679 Roofing Residential 98777 Tenant Improvement Commercial 98820 Sewer Mains Construction 98884 Sheet Metal 98967 Siding and Gutter Installation 98993 Sign Erection / Repair 99004 Sign Painting 99321 Street/road Paving / Repair 99505 Swimming Pool Maintenance 99507 Swimming Pool Installation 99613 Television Cable Installation 99650 Satellite Dish Installation 99746 Tile/Stone Installation 99969 Welding 99975 Window Cleaning

Ineligible Risks

Ineligible Risks (applicable to past, present or future operations. "Past" means within the past 10 years.)

The following risks do not qualify for coverage under this program:

• New Ventures under $7,500 in premium
• Any contractor whose gross receipts include heavy commercial or industrial work .
• Any classification not on the eligible list is excluded.
• Any Contractors who sub-contract more than 80% of the work
• Architects and Engineers who currently use the license. (If they don't use it, we will exclude those operations via endorsement and can insure the client.)
• Applicants involved in heavy commercial or industrial work including , but not limited to:
  
  • Airport work involving Hangars, runways, jet-ways or baggage or security systems
  • Chemical, industrial, steam or natural gas plants
  • Computer clean rooms
  • Dams and reservoirs
  • Flood control projects
  • Food or beverage processors or distributors - refrigeration systems
  • Heavy machinery or equipment installation / repair
  • High voltage transmission lines
  • Laboratories/cryogenics - refrigeration systems
  • Pumps or turbines- over 10 HP
  • Railroads
  • Ship repair / piers / wharves /jetties
  • Water or sewage treatment plants
  • Wineries - refrigeration systems; installation of vats, tanks or other processing equipment
• Applicants who perform any structural demolition or blasting operations (structural demolition in connection with remodeling acceptable).
  • The General Contractor cannot be associated with sub-contractors performing blasting.
• Applicants whose operations involve bulk storage, handling or distribution of fuel oil, gas or petrochemicals.
• Applicants whose operations involve any hazardous material, substances or waste, including storage tanks and containers.
• Applicants whose work involves exposure to pollutants such as asbestos, lead, and chemicals.
• Applicants with more than
  • Two (2) losses in the past three years or,
  • A three year loss ratio (incurred losses/premium) exceeding 40%. An exception can be made considered for renewals, including risks previously non-renewed by us, with a single property damage loss up to $15,000 and the loss did not arise out of an excluded class or was caused by a failure to comply with safety recommendations.
• Computer Installation, Repair or Service
• Elevator installation or repair
• Exterior Insulation Finishing Systems (EIFS)
• Fire sprinkler/suppression systems installation
• Free standing wood or pellet stove installation
• Gas Stations - work related to gas pumps, gaslines, canopies, repaving, aprons
• Hospitals/Surgical Centers
• Hydronic or radiant heating
• Installation of sunrooms
• Janitorial work on new tract homes or models; floor waxing; exterior window cleaning above ground floor; cleaning supermarkets (home and interior apartment cleaning is permitted)
• Mold remediation
• Playground, grandstand, or bleacher work
• Pressure boilers and/or machinery or equipment
• Pressure washing of autos or machinery
• Retaining Walls over six (6) feet in heigth
• Sandblasting Work
• Septic Tank work including cleaning
• Solar Heating
• Street Sweepers (Parking Lot Sweepers acceptable)
• Tree Removal or trimming (above ground level)
• Water or gas main work.
• ADA work related to installation or repair of handicap chair lifts only
• Applicants or insureds who have performed incidental ineligible operations in the past but are no longer performing, or intend to perform such work in the future, can be considered with the understanding that any losses that arise out of such work will be excluded.
  • Such work will be either excluded by one of the established program exclusions or by a "Designated Work" exclusion using form CG 21 34 1 87.

General Information

The Contractors Program is designed for contractors engaged in building construction, maintenance, or repair; contractors with a special trade; and service contractors who provide a service but do not build or construct. Contractors may sub-contract up to 80% of their gross annual receipts. The program is NOT intended for "paper" general contractors.

Contractors License

A valid contractor's license is required for those trades where licensure exists. We will accept unlicensed Handyman Repair provided individual contract jobs do not exceed $500.00 in cost.

• A handyman is defined as a one-person operation with no employees, no sub-contracting, 100% repairs, and not specializing in any trade.

Contractors who also hold a license for a trade that is ineligible for the program cannot be considered due to the exposure of past, present or future work performed under that license. We can reconsider if:

• A. The insured can provide a statement that they have performed no work under that license for the past 10 years,
• And de-activate it with the Contractors License Board.

Eligibility

Applicants who meet the following eligibility requirements may be submitted:

• Contractors involved in residential home building.
• Applicants who own other non-contracting or ineligible contracting businesses, including risks not covered under this Policy, subject to:
  • Operating under the same legal entity name, will be acceptable with an exclusion for such operations:
    • ISO Exclusion CG 21 00 07 98 applies to non-contracting operations and,
    • CG 21 53 01 96 applies to other contracting operations.
• Applicants involved with OCIP/Wrap up projects will have such operations excluded under our policy.
• Applicants must have a minimum of:
  • Two (2) years experience in the trade(s) to be covered;
  • Information outlining the insureds qualifications, and
  • Explanation will be required where the length of trade experience is unclear.
• Applicants who sub-contract no more than 80% of their gross receipts.
• We will consider General Contractors who build no more than seventy-five (75) custom single-family homes per year as long as they do not subcontract more than 80% of their gross receipts.
  • "Custom homes" are those constructed for a specific owner.
  • " Speculative homes ", or " owner-builder " residences, occupied or intended for occupancy by the applicant less than one year are NOT eligible.

Sub-Contractors

• Any contractor using sub-contracted work must meet the following criteria:
  • The sub-contractor must hold a valid contractors license for the trades to be performed
  • The sub-contractor must provide evidence of General Liability coverage for limits equal to or greater than the insured (minimum $1,000,000 CSL Occurrence and Aggregate for roofing sub-contracting)
  •   The sub-contractor must provide evidence of Workers' Compensation covering its employees, if applicable

  The sub-contractor must name our insured as an Additional Insured for General Liability coverage, including primary wording.

General Program Information

Coverage

The following coverages and limits of liability are available.

Limits Of Liability

Coverages Option 1 Option 2   General Aggregate   1,000,000   2,000,000   Products & Completed   Operations   1,000,000   1,000,000   Each Occurrence   1,000,000   1,000,000   Personal & Advertising Injury   1,000,000   1,000,000   Fire Legal Liability   excluded   excluded   Medical Payments   5,000   5,000

Forms

Policy Form: The 2004 ISO Commercial General Liability Form is used.
Endorsement Forms: ISO and Company endorsement forms are used.

Territory

Arizona, California, Colorado, Nevada and Oregon

Policy Term

Policies are issued for a maximum term of 12-months.

Applications

New - All Fully completed and signed:

• Ullico Supplemental Application

Renewal - All Fully completed and signed:

• Supplemental Application is required for each renewal to advise any change in operations, change in coverage or change in limits during the policy term.
  
  • All applications must be signed by the applicant and producer where indicated. All yes or no questions requiring an explanation must be answered.

Quotation, Binding and Submission Requirements

We will provide a quote for the Producer upon receipt of a fully completed submission. Quotes generated by the Producer are premium indications only and are not binding.

• All risks and premiums are subject to Underwriter approval.
• Binding authority is not extended.
• Complete application information must be submitted for written confirmation of binding of coverage to be issued.
• The Producer must fax, mail, and/or email the following information to the underwriter in order for us to consider binding coverage:
  
  • Completed and signed applications as described.
  • 3-years currently valued (within the past 60 days) loss runs are required for both Quote and Bind Requests
  • Copy of the Contractors license with explanation of any discrepancies;
    • No coverage can be bound if the license is suspended or expired.
      
  • A written request to bind coverage, stating the desired effective date.
  • Evidence of a deposit payment made by applicant for the amount of the deposit plus fees.
    
• Deposit of 25% of annual premium plus fees is required upon inception and is fully earned.

Additional Insured Endorsements

Additional Insured Endorsements are available for the premiums shown in the charts below. We must approve additional insured endorsements prior to binding. We need a description of the project and the work being performed by our insured.

Scheduled & Multiple Project Additional Insured Endorsement Forms& Rates
UL CG 10 20 06 06	$250 Blanket Additional Insured
CG 2010 (07/04)	$250 Each Additional Insured and Project   $250 Multiple Projects* (GC)   $250 Multiple Projects* (All Other)
CG 2010 (11/85)	COMMERCIAL ONLY! $500 Each Additional Insured

*[Applicable only for maintenance, service or repair work under a master contract with the additional insured.]

Other ISO Additional Insured endorsements are available for landlords, lenders, leasing companies and governmental entities for permits.These endorsements may be issued at a flat $250 per endorsement subject to Underwriter approval.

Sub-Contracted Work

Please refer to the Sub-Contractor Insurance requirements.
An exclusion of work performed by Sub-Contractors will apply if those conditions are not met.

Waiver of Transfer of Rights of Recovery Against Others

Subrogation entitles an insurance company to recover the amount due an insured from a third party who caused the loss. When these rights are waived the Company gives up this opportunity. Because the right of subrogation is important, we want to protect that right, however, we recognize there are instances where contracts require the Insured's policy waiving subrogation rights as a condition of the contract award. We will waive rights of subrogation for designated persons or organizations when required, subject to the following:

• No blanket waivers.
• Each entity must be specifically listed in the waiver endorsement.
• Entity must be acceptable as an Additional Insured.
• A 15% charge of the premium (subject to a $250 minimum) will be charged per entity.

Cancellations

 Any cancellations will result in a 25% minimum earned of the annual policy premium.

Pro Rata Cancellation
The policy is cancelled pro rata and the return premium is rounded to the next higher whole dollar when cancelled:

• At Company's request
• Cancelled and rewritten in the same Company

Short Rate Cancellation

The policy may be cancelled short rate when cancellation is at the Insured's request and/or for non-payment of premium. The original policy or a signed cancellation release is required. The deposit premium and/or minimum premium is fully earned regardless of the cancellation method.

Flat Cancellation

The policy may be cancelled flat when cancella­tion is due to non-recipt of premium. The return of the original policy is required. The deposit premium and/or minimum premium is fully earned.

Non Payment of Premium

The Policy will be cancelled without notice if premium is not received within 14 days of original inception date of the policy. The return of the original policy is required. The 25% deposit premium is fully earned.

Audits

The annual premium is an estimated premium and may be subject to a midterm or final audit at the conclusion of each policy period. A self-audit may be used at the Company's option. Some policies may require quarterly or semi-annual audits. In the event the insured does not complete the self-audit and return to the company within 30 days, the Company will increase the annual estimated premium 100%. The Company may elect to do a physical audit of the Insured's records.

Inspections

Certain risks may require inspections as determined by the Company or its designated Underwriter. Inspections are generally completed within 30-60 days of the effective date of coverage. Outstanding recommendations or adverse conditions must be completed or resolved and documented within the time allotted by the Underwriter or the policy will be cancelled.

Commissions

As provided for in your Producer Agreement.

Premium Computation

Premium is computed using our Internet based quote system. Premiums for endorsements adding or deleting coverage effective after the policy inception date will be computed pro-rata and rounded to the nearest whole dollar.

Premiums require a deposit of 25% of annual premium upon inception that is fully earned at inception. An exception exists for Minimum Premiums which require a deposit of 100% of annual premium upon inception that is fully earned at inception. Minimum Premiums are the lowest amounts for which a policy may be written for each full year of coverage. Schedule rating does not apply to minimum premiums. Minimum premiums for limits up to and including are as follows:

Annual Minimum Premiums
Liability Limit	Minimum Premium
$1,000,000/1,000,000	$2,500
$1,000,000/2,000,000	$2,500

Deductibles

The deductible applies to Bodily Injury and/or Property Damage Liability claims on a per claim basis. The Company's obligation to pay damage on behalf of the Insured or to defend the Insured applies only to the amount of damages in excess of the deductible amounts stated in the policy, not to exceed the limits of insurance applicable to each occurrence.

Deductible Amounts

The standard deductible of $5,000 applies to all eligible classes. The minimum deductible is $2,500. The maximum deductible is $10,000.

Deductibles of $15,000 up to $25,000 are available for risks that generate $1 Million or more in Gross Receipts and are financially sound. These exceptions are subject to Company Approval. Please refer such requests to your Underwriter.

Loss Control

Loss control is a vital part of any successful risk management program. Under this program, the Underwriter reserves the right to conduct a loss control survey under certain circumstances, including but not limited to:

• Determining the eligibility of an applicant, insured, or policyholder for a loss control survey consistent with Company guidelines or requirements.
• Performing loss control surveys as required by Company for any Policy written under this Program.
• Performing loss control surveys required to be performed by Company by applicable law or regulation for any Policy written under this Program.
• Performing an underwriting review of the results of the loss control survey including follow-up and pursuit of outstanding reports.
• Communicating as appropriate loss control survey recommendations to the applicant, policyholder, or applicable sub-producer including follow-up and pursuit of outstanding reports;
• Initiatiing appropriate underwriting action resulting from loss control surveys consistent with Company provided guidelines.

 

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 Edition 10/27/07