By: Tom Donnelly

Contractual Risk Transfer this is an ever evolving and challenging aspect for contractors. The hiring (upstream) contractor's problem is that they are focused on building their projects and satisfying their client's needs, and not necessarily focusing on making sure their subcontractors are providing them with the proper insurance coverage that is required for the project. That task is often handled by a clerk or project manager who is already wearing many hats.

Tips for Transferring Risk to Others

Do...
- Have knowledgeable counsel draft indemnification clauses that conform to statutory and common law limitations, and don't exceed these limitations.
- Back up indemnity provisions with insurance requirements.
- Require Additional Insured status, in addition to your contract's indemnification clause, on your subcontractor's General Liability policies and get a copy of the endorsement used to provide this coverage. This is what's considered the "belt and suspenders" approach.
- Require Additional Insured status to include coverage for both on-going and completed operations. Many Additional Insured endorsements do not provide for completed operations coverage so get a copy of the endorsement and read it. An endorsement that provides for only on-going or worse yet additional insured for premises only operations is of very little use to you.
- Keep requirements reasonable. If you're building a strip center is it reasonable to require a $50 Mil limit of insurance from your subs? It's probably just going to drive up your costs and not provide you the protection you're really after. Make sure the requirements fit the project.
- Update insurance requirements annually. Coverage forms change over time and your requirements and terminology should reflect what's going on in the market as well.
- Keep copies of all certificates of insurance indefinitely. Pollution and asbestos claims are still being filed on policies issued in the 1960s.

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By: Tom Donnelly

There has been an onslaught of information from various sources since the passage of the Patient Protection & Affordable Healthcare Act (PPACA) last month. Much of the information has been difficult to decipher and some of it can be classified as "misinformation" as some major pieces of the law will not take effect until 2014 and will most likely be modified to one degree or another. Many of the provisions will need to at least be clarified by future regulations still to be determined by the federal government.

The first rules and regulations for those provisions that are immediately effective in 2010, (retroactive to January 1, 2010), should be available from the United States Department of Labor, Employee Benefits Security Administration, and the U.S. Department of Health & Human Services, by the end of April, 2010.

There is a second set of regulations that "begin the plan year that begins six months after the date of enactment". Since the enactment date of the bill was March 23, 2010, this second set of regulations will be for those changes effective 9/23/2010, and are due out in late June or early July. Examples of effective dates for the "9/23" provisions are as follows:

October 1, 2010 for plan years that begin October 1
January 1, 2011 for calendar year plans
April 1, 2011 for plan years that begin April 1
 

The new law applies fewer requirements to employer-sponsored health plans that were in existence on March 23, 2010. These are known as "grandfathered" plans and will not be subject to some of the provisions of the law that will come down the road for employers not already sponsoring a plan.

Employers will be required to give notices to their employees in 2010 advising them of certain changes brought about by the Health Reform legislation. These notices will include availability of 2011 coverage for pre-existing conditions for children under age 19; availability of 2011 coverage for adult children under age 26; and the long-term care (CLASS Act) program effective January 1, 2011. Once the initial regulations are issued we will be able to provide more guidance to you on the timing and content of these notices.

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At our annual education seminar that will be held in Orlando from May 17th - May 21st, Casia Sinco, the Safety Program Manager for Regulatory Licensing under the State Fire Marshals Office, will be speaking on May 20th at our chapter dinner.

Casia will be covering the new electronic system better known as FCDICE and will be advising the contractors how to check their ceu's online and get their Student ID.
 

Since the inception of the State's FCDICE system for the Fire Protection Contractor a couple of years ago, we have been entering your ceu's electronically. Yes, in the past we have given you certificates, but after this renewal cycle, they will no longer exist, unless you of course need it for another profession or NICET. The system has given all of you a Student ID and it is imperative that you go online and get it and know how to look up your ceu's. Please follow the directions below and store your Student ID in your cell phone.

Go to www.floridastatefirecollege.org , enter ff********* (asterisks represent social security number) and enter "password" for your initial password or "fire1". Once you are in the system, click on "renewal" than click on "renewal evaluation". In the upper right hand corner is your STUDENT ID. If you have any problems, call the State Fire Marshals Office and ask for Donald at 850-413-3628
 

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