Insurance Coverage – The Designated Premises Trap
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Insurance Coverage – The Designated Premises Trap
Tip Provided By:
Don Stroud, CIC, AAI
Hartsfield and Nash Insurance Agency, Inc.
PO Box 1108
Wake Forest, NC 27587
919-556-3698
www.hartsfieldnash.com
Many infrared consultants go about their daily tasks assuming that their insurance providers are taking care of their interests so that they do not have to worry about potential liabilities. Depending upon one’s business, a Designated Premises endorsement can create a significant gap in coverage.
There is an endorsement that some insurance carriers “quietly” slip onto property and liability policies. The “Designated Premises” endorsement is a form that severely limits your liability coverage. The wording of this form does exactly what it implies. This endorsement limits your coverage for liability situations to the premises listed on the declarations page of your insurance policy. This can create several complications with respect to protecting your hard-earned assets.
The first is that you very simply do not have any coverage for lawsuits or issues arising from situations that take place anywhere other than your primary office location. This means that you only have liability coverage for things that happen at your office. If you are at a client location and you injure someone or damage their property, you would not have any coverage to defend you in a lawsuit or to pay for any damages that are levied against you.
This is the primary danger of the “Designated Premises” endorsement. If your work requires that you travel to client locations you should make certain that it is NEVER included on your liability policies. In addition to a general liability gap in coverage, your professional liability insurance could also be affected.
In order to best determine insurance needs, a Thermographer should consult with an insurance professional who can provide the best guidance on insurance options.
