www.rcabc.org  l  11 RCABC UPDATE In addition to a mandatory watch time, some policies may stipulate the minimum number of fire extinguishers required per floor as well as the need to ensure there are no flammables within a specified distance of the hot work. Also beware of poli- cies that require the entire surrounding area to be covered with sand or hosed down with water before hot work is performed. These policies exist in the marketplace! It’s critical that you, and everyone involved in a project, is aware of the warranties around hot work/torch-on operations. These conditions should be posted on the job site and strictly adhered to. Inadequate Insurance Due to the increased cost of being insured for torch-on work, there are instances where Roofing Contractors have not disclosed to their insurance provider the fact that they perform torch-on work and are only insured for cold operations. This obviously presents a huge exposure to the General Contractor in the event of a loss stemming from torch-on operations. Make sure your Roofing Contractor’s Liability Policy includes hot work/torch-on operations. Basis of Loss Settlement Some Roofing Liability policies are being issued on a “Claims Made” basis. Such a policy presents an increased risk to everyone relying on the Liability policy. When it comes to Loss Settlement, there are two types of Liability policies – Occurrence Basis or Claims Made Basis – and it’s critical that you’re aware of what is stated on a Roofing Contractors’ policy. An Occurrence Basis policy protects from incidents that occur during a policy term, regardless of when a claim is filed. An Occurrence policy will respond to claims reported even after a policy has been cancelled, as long as the incident occurred during the period in which coverage was in force. Claims-Made policies provide coverage for claims only when both the incident and the resulting claim happens during the period the policy is in force. This type of policy exposes everyone to risk, unless the Roofing Contractor continues to pay for and carry insurance continuously. Claims made after the coverage period ends will not be covered, even if the incident occurred while a policy was in force. If it’s reported after the policy expires or is cancelled, there is no coverage. If a Roofing Contractor fails to renew their Claims-Made Liability insurance and an incident then occurs, Liability could fall to the Owner, Design Authority, Consultant or General Contractor. It’s in your companies’ best interest to ensure that your Roofing Contractor’s coverage is on an Occurrence, not Claims-Made, basis. Insurance and RCABC Membership The importance of securing detailed confirmation of insur- ance from Roofing Contractors cannot be overstated. RCABC Membership requirements include a $5M minimum coverage limit and evidence of hot work endorsement. Contractor Members provide proof of insurance to RCABC Administration annually, and policy terms and limits required of members are reviewed every three years. As an Association of the province’s most successful roofing contractors, we are constantly inves- tigating new and better ways to make members attractive to insurers and instill confidence in our customers. It’s Chaos Without Us