Coverage Summary

Self-Insurance Programs

As of October 1, 2005, HARRP members fully self insure their exposures without recourse to reinsurance on excess insurance.

The coverage limits are $1 million per occurrence and in the aggregate for auto liability and $2 million per occurrence and in the aggregate for general liability, errors and omissions liability and employment practices liability.

Through the act of self-insuring its exposures, HARRP and its members maintain direct control over the adjustment, defense and settlement of the claims. This independence from the traditional insurance industry carries with it the responsibility to control costs in order to enjoy favorable rates.

Excess Property Insurance HARRP purchases excess property coverage for losses exceeding $2,000,000. For 2006, the limit of such excess property coverage is $63 million above the self insured coverage.

There is no coverage for flood or earthquake damage.

Coverage Comparison

COVERAGE	COMMERCIAL INSURANCE	HARRP
Outdoor Property	$1,000 covered for 5 perils	$10,000 covered for 7 perils
Property in open	100 feet from building	500 feet from building
Rain snow ice to property in the open	Excluded	Covered
Fire department charges	$1,000	Unlimited
Debris Removal	$10,000 if caused by covered peril	25% of damaged property for covered perils
Vacancy	60 days	No limit
Property Value	Subject to coinsurance penalty for under reporting	Covered at agree amount plus 25%
Valuation	Coverage at value stated	Up to 125% of stated Value
Glass breakage	$100 each pane/$500 maximum	Up to property limits
Seepage & leakage	14 days	No limit
Property loss reporting	180 days for Replacement Cost	Reasonable time for Replacement Cost
Water damage from frozen pipes	Excluded	Resulting water damage is covered
Property in transit	$1,000	$10,000
Ordinance Law Coverage	Must be added for extra cost	Included on all covered properties (free)
Errors & Omissions (E&O)	Must Apply & buy separately	Included if purchased and member insures the site with HARRP (same application)
E & O claim reporting period	60 days after policy expires	90 days after policy expires
Employment Practices Liability	Must Apply & buy seperately	Included with purchase of E & O based on "employee" headcount
Employee Dishonesty	Sold separately, separate cost	Included with liability coverages (free)
Liability Coverage	Starts at $1,000,000	$2,000,000
Medical payments absent liability	$5,000 maximum	Excluded unless HA caused injury
Cancellation of Coverage Notice	30 days	60 days
Dividend Payments to Clients	Some mutual insurers do	Yes. $4,000,000 for policy years 1987 to 1992!
General Liability Basic Limits	1 million/2million	2 million/2million
Equipment Breakdown (Boiler & Machinery)	Covers Accidental Breakdown of electrically operated equipment. Must be purchased at a separate policy for an additional premium.	Effective 2008 Covers Accidental Breakdown of electrically operated equipment. Covered on HARRP insured locations (free on HA owned locations)
Auto Limits	1 million/2million	1 million/1million