Elementos que inciden en la adecuada prestación de servicio al ciudadano

(1) Form/Limits. Liability insurance may be written on a combination of primary and excess limits to meet the total requirement. Policy is to be written on an occurrence coverage basis.

(2) Scope of Coverage. Written on an umbrella basis in excess over and no less broad than the liability coverages referenced above.

(3) Coverage Period. Inception and expiration dates will be the same as the CGL insurance.

(4) Following Form. Coverage must “drop down” for exhausted aggregate limits under the liability coverages referenced above; and must contain “follow form” statement.

(5) Limits Allocated to Project. Aggregate limit of insurance per location endorsement.

(6) Waiver of Subrogation. Policy to provide that subrogation is waived as to same persons as to which subrogation is above required to be waived as to the CGL policy.

(7) Additional Insureds. Umbrella policy shall list as additional insureds and shall cover such persons as additional insureds as they are required above to be listed as additional insureds on the CGL policy.

Permitting both primary and umbrella policies to satisfy the liability limits affords the insurance purchaser the opportunity to choose the most cost-effective combination of policies.

(8) Notice. Contain a provision for 30 days’ prior written notice by insurance carrier to the Landlord required for cancellation, non- renewal, or substantial modification.

See Appendix Form A.2 ISO CU 24 19 12 01 Lessor – Additional Insured and Loss Payee.

[e. Liquor Liability

(1) Minimum Limits. Tenant shall carry liquor liability insurance with limits no less than the following:

$___________ per occurrence. $___________ general aggregate. (2) Coverage. Such insurance shall be provided on an occurrence-based policy and cover liability arising out of

operations of Tenant at the Property. Defense shall be provided as an additional benefit and not included within the limit of liability.] [f. Environmental Liability

(1) Minimum Limits. Tenant shall carry environmental liability insurance with a limit of no less than $___________ .

30 (2) Coverage. Such insurance shall be provided on an

occurrence-based policy and cover liability arising out of

operations of Tenant at the Property. Defense shall be provided as an additional benefit and not included within the limit of liability. Such insurance shall include coverage for mold, fungus and related bacteria.]

e. Other

Tenant shall carry such other insurance as Landlord deems necessary or as required by Landlord’s Lender.

I.A.2. Property Insurance.

Tenant shall provide the following property insurance:

See Endnote III Property Insurance.

a. Commercial Property Insurance.

(1) Form. ISO form CP 10 30, or equivalent, covering (a) Tenant’s Rebuilding Obligations and (b) all of Tenant’s furniture, fixtures, equipment and other business personal property located at the Premises.

See allocation to Landlord at Supplement to Insurance Addendum ¶I.B.2 below of the responsibility for insurance of Tenant’s improvements and betterments under Landlord’s property policy. Most Landlord-drafted/biased leases allocate this

insurance responsibility to the Tenant.

See App. Form B.4 Building And Commercial Property Coverage Form ¶ A.1.b(6) specifying that a tenant’s “use interest as tenant

in improvements and betterments” are part of the Covered Property of an ISO property insurance policy. Further, the landlord’s ownership interest in tenant improvements and betterments are part of the Landlord’s Covered Property. ¶A.1.a.(5).

However, not all property policies are worded the same as the ISO property insurance policy. (1) A tenant’s property policy may state that it covers tenant’s personal property and be silent as to its use interest in tenant improvements that are owned by the landlord pursuant to a lease provision that transfers ownership of tenant alterations and improvements to the landlord. In cases of policy silence at to tenant improvements as to which tenant only has a “use interest”, the insurer may deny coverage. A New York court held for the tenant under such circumstances in Sigola Mf., Inc. v. Dairyland Ins. Co., 124 A.D.2d 654 (N. Y. App. Div. 1986). (2) A landlord’s property policy may explicitly state that improvements and betterments are covered under the landlord’s policy only if they are located within property occupied by the landlord and not within a tenant’s premises. (3) Even if both landlord’s and tenant’s policies state that they cover tenant improvements (the landlord’s ownership interest, and the tenant’s use interest), the policies may provide that they do not cover except on an excess basis the property if there is “other insurance”. The language in such “other insurance” provisions vary, but they typically require that in the event of a loss, any other applicable policy must respond first. The court in Travelers Lloyds Ins. Co. v. Pacific Employers Ins. Co,

602 F.3d 677 (5th _{Cir. 2010) held that in such case both the}

tenant’s insurer and the landlord’s insurer must share the cost.

(2) Insureds. Landlord and Tenant, as their interests may appear. See Endnote I.C.3 Parties to the Policy. See Endnote III.A Property Insurance.

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See App. Form B.6 CP 12 19 Additional Insured – Building Owner issued by ISO in November 2008 ISO. This endorsement is issued in cases where the Tenant is purchasing the policy and is used to designate a building owner as the Named Insured on the tenant’s property policy covering the building. It is the insureds who receive the loss payment under a property policy. Thus it is unnecessary to specify that the Landlord in such case is also a loss payee. The ISO CP 12 19 Building Owner Additional Insured Endorsement does not provide for notice of cancellation to be given to the landlord/additional insured. Further, the cancellation provision in the ISO common policy conditions states that notice of cancellation is given only to the first named insured. Thus, the tenant’s property policy provides notice of cancellation will only be given to the tenant. In Scottsdale Ins. Co. v. Mason Park Partners, LP, 2007 WL 2710735 (5th Cir. – Tex. 2007) the

landlord learned the hard way that it needed to follow up and obtain a corrected additional insured endorsement on the tenant’s property policy. Although the landlord was designated as an additional insured on the liability portion of the package policy, the additional insured endorsement on the property policy stated that the name and address of the loss payee was “to follow”. It never did and the insurance company did not send notice of cancellation of the property portion of the policy prior to the fire that destroyed the Taste of Katy restaurant. The court found “Nothing in the loss payable provision or anywhere else gave Scottsdale notice that (landlord) was the intended loss payee”. In addition to issuing the additional insured endorsement to the property policy, the landlord should also have obtained an endorsement to the property policy requiring notice of cancellation be given to it of policy cancellation. The standard property policy only requires notice of cancellation be sent to the first named insured.

See App. FormB.5 ISO CP 12 18 06 07 Loss Payable Provisions, Optional Clause F Building Owner Loss Payable Clause. In November 2008 ISO amended its CP 12 18 Loss Payable Provisions endorsement to permit a building owner to be designated as a loss payee under a Building Owner Loss Payable option, as an alternative to using the CP 12 19. Under the Building Owner Loss Payable option, covered loss to the building is adjusted with the building owner and loss to betterments is adjusted with the tenant, unless the lease stipulates otherwise. Notice of cancellation is not granted to the building owner.

See App. Form B.6 ISO CP 12 19 06 07 Additional Insured - Building Owner, an endorsement to a tenant’s property policy to designate its landlord as a Named Insured as to the building.

(3) Required Endorsements as to Coverage/Limits. As determined by Landlord, but may include Business Income and Extra Expense; Rental Value; Glass; Law and Ordinance; Terrorism; and Signs.

See Endnote III.G-I Ordinance Or Law Coverage, Glass Insurance, and Sign Insurance.

(4) Waiver of Subrogation. Waiver of subrogation by insurer as to the Landlord and other persons as may be designated by Landlord to Tenant.

See Endnote III.A.2b Property Insurance – Waivers Of