Oak Tree Insurance
503.635.3303 | 800.394.9899
5335 Meadows Rd. Suite 101 - Lake Oswego, OR 97035
Fax:(503)635-7491  info@oaktreeins.com
 







  
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 KNOWLEDGE AND NOTICE OF OCCURENCE
If an insured’s employee or agent fail to notify the carrier of any covered accident
that they have knowledge of it will not invalidate the coverage afforded under the
policy with respects the insured.
IMPORTANT INFORMATION REGARDING LEASED VEHICLES
If you have just entered into a lease agreement, please take a moment to read and understand this information. Contractual leasing agreements vary greatly from company to company. Your lease agreement is a contract which you will probably be held to by law.
Often leasing contracts hold you responsible for damage or theft to the car -- far beyond the actual cash value of the vehicle. Insurance companies offer comprehensive and collision coverage’s on an actual cash value basis only, as determined by NADA or similar books. Therefore, it is possible to be legally responsible to the leasing company for more than the amount the insurance company will pay you in the event of a loss. The balance, if any, will be your responsibility.
Please be very careful when entering into any contractual agreement, and fully understand your responsibilities stemming from such.
LEASEHOLD INTEREST COVERAGE
Leasehold Interest insurance provides coverage for a tenant in the event his or her lease is terminated. The lease may be terminated due to (1) a clause in the lease specifying that the lease is terminated in the event of property damage causing the premises to be unavailable for tenancy, or (2) condemnation of the leased premises. It is a form of "time element" coverage that serves to provide coverage for the difference between the old rental and a new, likely more expensive rental.
 LIABILITY COVERAGE EXTENSIONS
(1) Knowledge of Accident
It is hereby understood and agreed that knowledge of an accident by the agent, servant, or employee of the insured shall not in itself constitute knowledge by the insured, unless the insured shall have received such notice from its agent, servant, or employee.
(2) Notice of Accident
It is further agreed that failure of any agent, servant, or employee of the insured (other than the insured) to notify the company of any accident of which he/she has knowledge shall not invalidate the insurance afforded by this policy as respects the named insured.
(3) Unintentional Errors or Omissions
Coverage afforded by this policy shall not be invalidated or affected by any inadvertent errors, omissions, or improper descriptions of premises, elevators, or other descriptions mentioned in this policy.
(4) Broadened Named Insured Wording
These coverage’s will automatically apply to ". . . any affiliated, associated, allied or subsidiary company or entity (including subsidiaries thereof), now held or hereinafter acquired or constituted . . ."
(5) Liability Waiver of Subrogation
Carrier agrees that it shall accept no rights of subrogation against any grossly negligent employee or executive officer of any named insured.
(6) Voluntary Workers' General Liability
The word "insured" has been amended to include these individuals for General Liability coverage’s.
LIQUOR LIABILITY INSURANCE
Liquor liability insurance provides coverage for bodily injury or property damage for which an insured may be held liable by reason of the following:
  • Causing or contributing to the intoxication of any person;
  • Furnishing alcoholic beverages to a person under the legal drinking age or under the influence of alcohol; or
  • Violating any statute, ordinance, or regulation relating to the sale, gift, distribution, or use of alcoholic beverages.
This coverage applies only if the insured is involved in the following activities:
  • Manufacturing, selling, or distributing alcoholic beverages;
  • Serving or furnishing alcoholic beverages for a charge, whether or not such activity requires a license or is for the purpose of financial gain or livelihood; or
  • Serving or furnishing alcoholic beverages without a charge, if a license is required for such activity.
 Loss of Use :Insurance which compensates the policyholder for the inability to use property destroyed or damaged by an insured peril. For example, if a car is stolen, loss of use insurance will pay or contribute to the cost of hiring a substitute car.
 LOSS OF MAINTENANCE FEES COVERAGE
This coverage protects the association against the loss of maintenance fees when occupancies have been interrupted or impaired by the occurrence of any insured peril.
This is a form of Business Interruption insurance for the association. It assures continuous income while the building is untenantable.
MEDICAL PAYMENTS -- GENERAL LIABILITY
A general liability coverage in which the insurer reimburses without regard to the insured's liability, the insured and others (as specifically provided in the policy) for medical and funeral expenses incurred by such persons as a result of bodily injury or death sustained by accident under the conditions specified in the policy.
EXPLANATION OF NAMED PERIL VERSUS ALL RISK
A "peril" is defined as a cause of damage or loss. To be covered for damage or loss under a "basic” contract, the damage or loss must be caused by a peril that is "named" or listed in the contract. Consequently, if damage or loss is caused by a peril that is not named, there is no coverage. In addition, the contract's exclusions must also be considered in determining coverage.
In a "special” contract, it is not necessary to name or list the insured perils since the intent is to cover all risk of damage or loss. Here, too, the contact's exclusions must be considered; however, the "special” form of coverage provides a much greater coverage quality.
Note that "special” coverage should not be construed to mean "all loss" coverage. Certain types of loss are definite and therefore not insurable.
NON-OWNED AND HIRED AUTO
Coverage is for policies written with limits of liability of $1 million or more. It provides coverage for rental or borrowed autos as long as the insured does not own any private passenger vehicles, pick-up, panel truck or van and the use does not exceed 30 days
 
OCCURRENCE (CGL)
This term means an accident, including continuous or repeated exposure to conditions, which results in bodily injury or property damage neither expected nor intended from the standpoint of the insured.
 ORDINANCE OR LAW COVERAGE
(1) Coverage for Loss to the Undamaged Portion of the Building.
Pays for the loss of value of an undamaged portion of the existing building which must be demolished and/or removed to conform with municipal ordinance, code, etc.
(2) Demolition Cost
Pays for the cost of demolition of the undamaged portions of the building necessitated by the enforcement of building, zoning or land use ordinance or law.
(3) Increased Cost of Construction
Pays for any increased expenses incurred to replace the building with one conforming to building laws or ordinances, or to repair the damaged building so that it meets the specifications of current building laws or ordinances.
OPERATION OF BUILDING LAWS
Most communities have building or zoning laws to regulate the standards for type of construction, fire protection, electrical wiring, and plumbing, and to regulate the type of occupancy allowed in the city and certain other areas. Under "grandfather" provisions usually included in these laws, buildings that do not meet the standards generally are permitted to remain only because they were erected before the laws in question were passed.
Most laws, however, provide that if a nonconforming building is damaged or destroyed, it must be brought up to code before it can be reoccupied. Many laws also provide that if a building is damaged beyond a certain proportion of its value -- 50% is a common measure -- it may not be repaired, but must be demolished and, if replaced, replaced by a structure that meets the building or zoning requirement.
Although there are almost countless situations where the operation of such laws is applicable, some common examples are high-rise buildings that must be equipped with automatic sprinkler systems, buildings with electrical wiring meeting less than minimum code, and frame buildings in congested areas zoned for brick or fireproof construction. The effect of the operation of building laws is to almost always result in more costly repair than repair without such requirements.
In virtually all property insurance policies, a building owner's exposure to loss resulting from the enforcement of building or zoning laws is effectively excluded by language identical or nearly identical to that found in the Standard Fire Policy. The Standard Fire Policy specifies that recovery shall be "without allowance for any increased cost of repair or reconstruction by reason of any ordinance or law regulating construction or repair."
The effect of this exclusion is to leave the following basic exposures uninsured:
  • The actual expense of tearing down the undamaged portion of a building if a law or ordinance dictates demolition and disposal of the resulting debris.
  • The loss of the value of the undamaged portion of a building.
  • The difference between the value of the building as it stands -- the insurable value of the building -- and its value if rebuilt to code. Even when insurance is written on a replacement cost basis (i.e., without deduction for depreciation), this exposure exists because the replacement cost referred to in the insurance is that required to restore the original building, not an improved and more expensive version of the original building.
  • An extended loss of business income, extra expense, or additional living expense.
OWNERS' OR CONTRACTORS' PROTECTIVE LIABILITY COVERAGE
This insurance coverage provides for payment on behalf of the insured of all damages the insured becomes legally obligated to pay due to bodily injury or property damage caused by an occurrence rising from the following:
  • Operations performed for the named insured by independent contractors.
  • Acts or omissions of the named insured in connection with his/her general supervision of such operations.
This does not include maintenance and repair at premises owned by or rented to the named insured, or structural alterations at such premises that do not involve changing the size of or moving buildings or other structures.
 PERSONAL INJURY LIABILITY COVERAGE
This insurance coverage protects against false arrest, detention or imprisonment, or malicious prosecution; libel, slander, defamation, or violation of right of privacy; and wrongful entry, eviction, or other invasion of right of private occupancy.
 PESTICIDE OR HERBICIDE APPLICATOR COVERAGE
Normally there is a pollution exclusion in a liability insurance policy that states that the insurance does not apply to bodily injury or property damage rising out of the discharge, dispersal, release, or escape of smoke, vapor, soot, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste materials, or other irritants, contaminants, or pollutants into or on land, the atmosphere, or any watercourse or body of water. However, pesticide or herbicide applicator insurance affords coverage to the named insured in the following situations:
  • Where such discharge, dispersal, release, or escape is sudden and accidental, or
  • If the operations of the named insured are being conducted away from premises owned by or rented to the named insured and the bodily injury or property damage occurs away from such premises, and if such operations meet all standards of any statute, ordinance, regulation, or license requirement of any federal, state, or local government having application to such operation.
PLATE GLASS COVERAGE
This insurance coverage provides "special" protection, except for the perils of war, nuclear reaction, and fire. (Fire is covered under the building policy.) This coverage is for full replacement cost and covers the expense of repairing frames, installing temporary plates, or boarding up openings.
POLLUTANT CLEANUP AND REMOVAL
This is an aggregate first party coverage that applies to your expense in extracting "pollutants" from land or water at your location, if the release of the pollutants is caused by or results from a covered loss.
POLLUTION LEGAL LIABILITY COVERAGE
Coverage’s
  1. Pays on your behalf all sums you are legally obligated to pay as a result of emission, discharge, release, or escape of any contaminants, irritants, or pollutants into or on land, the atmosphere, or any water course or body of water, provided this results in "environmental damage."
  2. Additionally pays to reimburse your expense for reasonable and necessary cleanup costs incurred in the discharge of a legal obligation validly imposed through governmental action, provided such expense is incurred because of "environmental damage."
  3. Pays for defense of any claim or suit that is the subject of this insurance.
Coverage Response
"Claims made" coverage response (i.e., responds only to claims first made during the policy period and only for incidents that have occurred after the effective date of this coverage).
Pollution” Environmental damage" is defined in the policy as” the injurious presence in or on land, the atmosphere, or any water course or body of water of solid, liquid, gaseous, or thermal contaminants, irritants, or pollutants."
 PRODUCTS LIABILITY
The liability for bodily injury or property damage incurred by a merchant or manufacturer as a consequence of some defect in the product sold or manufactured or the liability incurred by a contractor after he has completed a job as a result of improperly performed work. The latter described part of products liability is called Completed Operations.
 PRODUCTS AND COMPLETED OPERATIONS AGGREGATE
Liability arising out of the insured's products or business operations conducted away from the insured's premises once those operations have been completed or abandoned. An aggregate limit in an insurance policy stipulates the most it will pay for all covered losses sustained during a specified period of time, usually one year.
 PROPERTY MANAGEMENT ERRORS AND OMISSIONS LIABILITY
("MISTAKE LIABILITY") COVERAGE
Coverage Type
  1. Liability -- Pays on your behalf all sums you become legally obligated to pay by reason of any act, error, or omission rising out of services you render or failed to render. Such services include arranging for property maintenance, renting or leasing, construction, alteration, land development, etc.
  2. Defense and Settlement -- Pays for defense of any claim or suit that is the subject of this insurance.
Examples
  • Mishandling of accounting and financial matters
  • Mismanagement
  • Exceeding authority under the contract
  • Failure to perform under the contract
  • Failure to obtain certificates of insurance from contractors for Workers' Compensation insurance, resulting in owner being liable for the premiums
  • Giving incorrect property values, resulting in uninsured losses or excessive premiums
  • Failure to maintain an adequate amount of insurance
Important Coverage Feature
Intentional acts of employees (current and/or terminated) are covered.
RENT COVERAGE
This insurance coverage protects building owners against loss of income when rentals have been interrupted or rental value has been impaired by the occurrence of any of the insured perils.
Essentially this is Business Interruption insurance for the landlord. It assures continuous income while an insured building is un-tenantable.
REPLACEMENT COST COVERAGE
This form of insurance provides coverage on the basis of full replacement cost without deduction for depreciation on any loss sustained, subject to the terms of the co-insurance clause. This coverage applies to both building and contents items as specified on the face of the policy.
No deduction is taken for depreciation in arriving at the proper amount of insurance needed to comply with the co-insurance clause.
SELLING PRICE CLAUSE
This applies to the value of goods which have been damaged or destroyed by an insured peril. The purpose is to insure the profit that would have been incurred through a sale. It defines the insurable value of merchandise which has been sold, but not delivered, at the amount at which it was sold, less any charges not incurred.
 DEFINITION OF SUBROGATION
An insurance carrier may reserve the "right of subrogation" in the event of a loss. This means that the company may choose to take action to recover the amount of a claim paid to a covered insured if the loss was caused by a third party. After expenses, the amount recovered must be divided proportionately with the insured to cover any deductible for which the insured was responsible.
 
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