The most the insurer will pay for loss or damage in any one occurrence is the limit of insurance stated in the policy declarations.
This is the amount of a loss which must be paid by the insured before the coverage will respond to a loss. Different deductible amounts are available and apply to each occurrence.
Any written charge or lawsuit, including a charge filed with the Equal Employment Opportunity Commission or similar state or local entity having jurisdiction over employment disputes, delivered to or served on the Insured seeking damages or other relief for a Wrongful Employment Practice.
Property Insurance is any type of insurance that indemnifies an insured party who suffers a financial loss because property has been damaged or destroyed. Property is considered to be any item that has a value. Property can be classified as real property or personal property.
In Commercial Property Coverage forms, Real Property includes permanent attachments to land, such as buildings, completed additions, permanently installed machinery and equipment, etc. Personal Property is all property that is not real property. The Building and Personal Property coverage form is used to insure almost all types of commercial property. The insuring agreement in the Building and Personal Property coverage form promises to pay for direct physical loss or damage to covered property at the premises described in the policy when caused by or resulting from a covered cause of loss. The following is a brief outline of coverages and how they are used within the Commercial Building and Personal Property coverage form.
Personal Property Coverage includes property located in or on the building or in the open (including in a vehicle) within 100 feet of the legal boundaries of the described premises, consisting of: furniture and fixtures, machinery and equipment, stock, all other personal property owned by you and used in your business, labor, materials or services furnished or arranged by you on personal property of others, your use interest as tenant in improvements and betterments. Improvements and betterments are fixtures, alterations, installations or additions made a part of the building or structure you occupy but do not own, and which you acquired or made at your expense but cannot legally remove. This coverage also includes leased personal property for which you have a contractual responsibility to insure, and personal property of others.
Inflation can increase the costs associated to repair or replace your property. This can affect construction costs including costs of materials and supplies. With inflation guard, the policy limit increases gradually during the policy term so that the property limit keeps up with the pace of inflation.
This refers to normally dry areas which have been temporarily covered in whole or in part by overflowing inland or tidal waters. Most property policies do not cover flood losses. Your policy may contain an exclusion for many types of water-related losses. We suggest that you review your form for limitations. Discuss the need for optional coverage with your Crane representative.
Debris Removal coverage is included in the building and/or personal property limits shown in the policy. This coverage will pay the costs to remove debris after a covered loss to property. The maximum limit provided for this coverage is 25% of the amount of loss not to exceed the limit of insurance. The policy provides for a nominal additional amount in excess of this coverage, but may not be adequate. This additional amount can be increased.
Business Income is the net profit or loss that would have been earned or incurred if the suspension of the business had not occurred. Business Income insurance pays the actual loss of business income sustained by the insured because of a necessary suspension of the insured's operation during the period of restoration following a covered loss. When the “including extra expense” form is provided, this also includes any normal operating expenses that must continue during the suspension of the business. The suspension must result from direct physical loss or damage to real or personal property. Coverage is provided against the same causes of loss covered under the insured's property policy.
Extra Expenses are any expenses over and above those that would have been incurred during normal operation of the business. Extra expense can include expenses incurred to avoid or minimize the suspension of operations, expense to repair or replace property, and expense paid for overtime work to speed up the restoration of the business.
A policy may contain a coinsurance clause requiring that the limit of coverage be a minimum percentage (usually 80%) of the insurable value of your property. If the amount of insurance carried is less than what is required by this clause, any claim payment may be reduced by the same percentage as the deficiency. For example, covered property worth $100,000 may require a minimum of 80%, or $80,000, of coverage for compliance with the policy’s coinsurance requirement. If only $60,000 of coverage is carried (25% less than the required $80,000), then any loss payment would be reduced by 25%.
The term peril is used when discussing losses. A peril is a cause of loss. There are three Causes of Loss forms typically used to insure commercial property:
Basic Form: This form covers the “specified” perils of fire, lightning, explosion, windstorm, hail, smoke, aircraft or vehicle damage, riot or civil commotion, vandalism, sprinkler leakage, sinkhole collapse, and volcanic action.
Broad Form: This form includes all of the Basic Form perils and adds water damage, weight of snow, ice or sleet, breakage of glass and coverage for falling objects.
Special Form: This form provides the broadest coverage and is the most common coverage form used. The Special Form covers all causes of loss, except those specifically excluded.
The replacement cost of an item, less the accumulated depreciation for age and condition.
Important Note Regarding Valuation: Values used in this proposal are only estimates. We suggest you obtain a professional appraisal of your property to determine the correct values to insure.
When the agreed value option is used the coinsurance requirement is removed and the insurer agrees to cover losses to property for its agreed value. For example, suppose the property is insured for $100,000 and the agreed value is also $100,000. If a loss occurs, any loss up to $100,000 is fully covered. When this option is used the insured and the insurance company agree on the value of the property before the policy is issued.
Most commercial property insurance policies include a coinsurance clause which requires the insured to carry an amount equal to at least a specified percentage of the property. If a loss occurs, and it is determined that the amount of insurance carried is less than the amount required, a penalty could be levied on the insured.
Inland Marine policies are divided into two categories; filed and non-filed. Filed policies are characterized by a large number of potential insured’s and reasonably similar loss exposures. The rates and forms of filed policies must be filed with the state insurance department. Non-filed policies are characterized by a relatively small number of potential insured’s, and diverse loss exposures or both. The rates and forms for non-filed policies are not filed with the state.
“ALL RISK” CAUSE OF LOSS FORM
“All Risk” Cause of Loss Form covers direct physical loss or damage to covered property subject to policy terms, conditions and/or exclusions.
REPLACEMENT COST VALUATION
This valuation method pays for the cost to replace or rebuild damaged property, regardless of the depreciated value of that damaged property.
This coverage protects your business from claims arising from alleged damage caused by personal injury or property damage. It is written to include protection for all your daily operations, products you sell or the services you render. These costs can include judgments, attorney's fees, court costs, etc. Most liability forms provide automatic coverage for any new operations begun during the policy year.
When a limit of insurance is shown under “Coverage Description”, the Commercial General Liability Policy provides the insurance protection needed to pay damages for bodily injury or property damages for which the insured is legally responsible. In addition, the policy can provide coverage for liability arising from personal and advertising injury and medical expense. It can cover accidents occurring on the premises or away from the premises. Coverage is provided for injury or damages arising out of goods or products made or sold by the named insured. The insured is the named insured and the employees of the named insured. However, several individuals and organizations, other than the named insured, may be covered, depending upon certain circumstances specified in the policy. Unless otherwise stated, the policy provides supplemental payments for attorney fees, court costs and other expenses associated with a claim or the defense of a liability suit, in addition to the limits shown.
The General Aggregate Limit is the most money the insurer will pay under a certain coverage for all claims occurring during the policy term.
Coverage is provided for damages arising out of ownership or occupancy of the insured premises which the insured may become legally obligated to pay. This also covers damages arising out of operations performed by the insured business.
Products coverage is provided for damages arising out of products manufactured, sold, handled or distributed by the insured. Completed Operations covers damages occurring after operations have been completed or abandoned, or after an item is installed or built and released for its intended purpose.
Personal Injury means injury other than bodily injury. Coverage is provided for injury resulting from offenses such as false arrest, malicious prosecution, detention or imprisonment, the wrongful entry into, wrongful eviction from and other acts of invasion, or rights of private occupancy of a room. Coverage for libel and slander is also provided in the policy.
This coverage pays for damages done in the course of oral or written advertisement that disparages, libels or slanders a person's or organization's goods, products or services. Coverage for these offenses is provided under advertising injury coverage only if they occur during the course of advertising the named insured's own goods, products or services.
Each occurrence is considered to be an accident, which could include continuous or repeated exposure to the same harmful conditions. An occurrence can also be a sudden event, or a result of a long term series of events.
OCCURRENCE FORM
Currently, there are two major approaches used to provide coverage in the insurance industry; claims-made and occurrence forms. Under the occurrence form, an accident or negligent act is covered if it occurs when the policy is in effect, even if the claim is made or some consequence of the accident occurs after the termination date.
The claims-made policy form covers claims made against the insured during the policy term. A claim made after the policy expires is not covered by a claims-made policy unless the claim is covered by an extended reporting period.
PREMISES/OPERATIONS COVERAGE
This coverage provides protection from claims arising out of products sold or distributed by you, or out of operations performed for you by someone else, after the operations have been completed.
PRODUCTS/COMPLETED OPERATIONS COVERAGE
FIRE LEGAL LIABILITY
This limit provides coverage for legal liability for that portion of the premises rented to the insured. The standard limit is $50,000, which can be increased. Special Note: Damage to portions of a building not occupied by the insured is automatically covered under the “Each Occurrence” limit.
MEDICAL PAYMENTS
Medical payments coverage pays medical expenses resulting from bodily injury caused by an accident on premises owned or rented by the insured, or locations next to such property, or when caused by the insured's operations. These payments are made without regard to the liability of the insured, and made at the insured’s option. The standard limit is $5,000 which can be increased.
This endorsement is available for an additional premium upon receipt of a written request from the first named insured after the end of the policy period. It begins when the Basic Tail Reporting Period ends and restores the aggregate limits of liability shown on the declaration page at the end of the policy period. This limit will apply to claims first received and recorded during the Supplemental Extended Reporting Period. The Extended Reporting Periods do not extend the policy period or change the scope of coverage provided. They apply only to claims for bodily injury or property damage that occurred before the end of the policy period (but after the Retroactive Date, if any, shown in the Declarations).
The earliest date for which coverage is afforded under a claims-made form. Usually the effective date of the first year of such policy form provided to the insured. Claims must take place after this date and before the end of the policy period for coverage to apply.
Employee dishonesty is considered to be a criminal act committed by an employee acting alone or in collusion with others. There must be intent by the employee to cause the employer a loss and to obtain a financial benefit for the employee or someone else.
Coverage is provided for dishonest acts of employees of the named insured only. Coverage insures against loss of money, securities, and property other than money and securities. The blanket form provides coverage for dishonest acts of all employees. The limit for blanket coverage applies per loss, regardless of how many employees are involved. The scheduled form provides coverage only for the dishonest acts of employees specifically listed in the policy. On the scheduled form, a separate limit applies to each employee listed on the schedule.
Forgery is generating a document or signature that is not genuine. Alteration is changing a document in a manner that is neither authorized nor intended. This form insures against loss caused by the forgery or alteration of a covered item drawn against the insured's accounts. A covered item might be a check, draft, promissory note, bill of exchange or similar instrument.
Theft means any act of stealing. Disappearance is unknown causes of loss. Disappearance lacks the elements of knowing if the crime was a theft, burglary or robbery. Destruction is the loss of certain property, it is usually the result of another cause of loss.
There are two coverages that are provided. The first coverage covers money and securities against loss by theft, disappearance, or destruction inside the premises. The second covers money and securities outside the premises in the care and custody of a messenger.
Robbery is the taking of property from a person by the threat of personal injury to that person. Safe Burglary is a specific kind of burglary that means the taking of property from a safe or vault which shows visible signs of forcible entry.
This form covers property other than money and securities inside and outside the premises. Property other than money and securities is covered while outside the premises and only in the care and custody of a messenger. Coverage inside the premises is for loss or damage resulting from robbery of a custodian or from safe burglary. A custodian is the named insured or a partner or employee of the insured.
Covers property other than money and securities inside the premises. It also covers damage to the insured's premises resulting from a covered cause of loss.
Computer fraud is a specialized kind of theft where a computer is used to steal property from it's rightful owner. This form covers money and securities and property other than money and securities.
Extortion is the surrender of property away from the premises as a result of a threat of bodily harm to someone who is, or allegedly is, being held captive, or to obtain something from another by means of coercion, intimidation, threats, or violence. This form covers money and securities and property other than money and securities.
There are two coverages provided. The first covers property other than money and securities inside the premises for loss caused by actual or attempted theft. The second covers robbery outside the premises, covers property other than money and securities while it is in the care and custody of a messenger.
A provision applying with regard to Hardware only that has not been leased or purchased within a certain time period preceding and prior to the loss. In the event that one or more items of covered equipment are totally lost or damaged by a Covered Cause of Loss, the company will sometimes allow an additional percentage over the replacement cost of the property as an allowance for the purchase of new equipment with upgraded processing or performance characteristics.
REPORTING FORM
This Builders Risk form provides coverage whereby the total contract values of each “installation operation” to be covered by the policy each month are reported on a quarterly basis to the company. Premiums are charged based on these reports. Failure to provide timely and accurate reports may result in a reduction in payment at the time of a loss or total lack of coverage. The total contract value includes the value of any labor and materials and your profit, if any, as shown in your contract. Total value also includes the value of any temporary structures, cribbing, false work, scaffolding, construction forms, fences and signs covered by the policy.
SOFT COSTS
a. Additional interest expense on money you borrowed to finance “installation operations”; b. Additional real estate and property taxes; c. Additional advertising and promotional fees; d. Additional legal and accounting costs and fees; e. Additional commissions, fees and administrative expenses for the renegotiation of leases; f. Additional engineering, architect and consulting fees; g. Additional building inspection fees and charges; h. Additional administrative expenses; and i. Any other additional fees, charges or expenses added to this clause by endorsement.
VALUATION
The value of your property will be the least of the following amounts: 1.) The actual Cash Value of the property; 2.) The cost of reasonably restoring that property to its condition immediately before the loss; 3.) The cost to replace that property with substantially identical property. The value of property for which you are liable will be the least of amounts 1., 2. or 3., aforementioned, or 4.) The amount for which you are liable.
The liability coverage of the commercial auto policy provides protection against legal liability arising out of the ownership, maintenance, or use of a covered automobile. The insuring agreement will pay damages because of bodily injury or property damage for which the insured is legally responsible because of an automobile accident resulting from the ownership, maintenance, or use of a covered auto. The insuring agreement also states that in addition to the payment of damages for which the insured is legally liable for, the insurer also agrees to defend the insured for all legal defense cost. The defense cost is in addition to the policy limits. The limit of insurance applies to each accident.
The insuring agreement states that the insurer will pay all reasonable and necessary medical and funeral expenses incurred by an insured because of bodily injury caused by an accident. The insured is the named insured, the insured's employees and guests, and any other person occupying a covered auto. These payments are made without regard to fault. Optional higher limits are available.
This insuring agreement pays for bodily injury to an insured who is injured by an uninsured motorist, a hit-and-run driver, or a driver whose insurer becomes insolvent. These benefits are paid under the named insured's policy. Optional limits may be purchased up to your limit of liability.
This coverage is added to supplement the Uninsured Motorist Coverage, the coverage applies only when the other driver has liability limits at the time of an accident, but the liability limits carried may be insufficient to pay for damages for which the driver is responsible. This is when the insured's underinsured motorists coverage would apply and payment for the difference could be made. The two coverages are mutually exclusive and do not overlap or duplicate each other.
This coverage provides protection against loss or damage to a covered auto or a non-owned auto resulting from the impact with another vehicle or object. Collision losses are paid regardless of fault.
Comprehensive coverage provides protection against loss or damage to a covered auto resulting from loss other than a collision or upset. This coverage also provides for supplemental payments for transportation expenses in the event of total theft of a covered auto or a non-owned auto. Coverage begins forty-eight hours after the theft.
This provides coverage against loss from fire, lightning, or explosion; theft; windstorm, hail, or earthquake; flood; mischief or vandalism; and sinking, burning, collision or derailment of a conveyance transporting the covered auto.
This endorsement pays the lesser of all necessary and actual expenses or, the maximum payment stated in the policy for any one day or any one period incurred for the rental of an auto because of a loss to one of your covered autos that carries physical damage coverage. Payment applies in addition to the otherwise applicable amount of coverage you have on a covered auto and begins 24 hours after the loss. This coverage will not apply if there are spare or reserve autos available to you for your operations.
When this coverage is added, the insurer pays for towing and labor costs each time a covered auto or non-owned auto is disabled, up to a stated amount.
Personal Injury Protection (PIP) is an endorsement that adds no-fault benefits. No-Fault means that in the event of an automobile accident, each party collects from his or her own insurer regardless of fault. The PIP endorsement is only available in certain states with No-Fault Laws. The endorsement applies only to bodily injury and not to property damage. (The state of Michigan is the exception to property damage.) No-Fault Laws vary widely from state to state.
Contingent coverage for damage to a vehicle that you have on temporary hire. It is supplemental to, not instead of, the owner's own policy. The coverage provides the same forms of insurance usually provided on your own vehicles.
Coverage is provided for any auto, including autos owned by the insured, autos the named insured hires or borrows from others, and other non-owned autos used in the insured's business.
Coverage is provided for all autos owned by the named insured. The owned auto symbol is used for liability insurance only.
Only the private passenger “autos” you own. This includes those private passenger “autos” you acquire ownership of after the policy begins.
Only those “autos” you own that are not of the private passenger type (and for Liability Coverage any “Trailers” you don’t own while attached to power units you own). This includes those “autos” not of the private passenger type you acquire ownership of after the policy begins.
Only those “autos you own that are require to have No-Fault benefits in the state where they are licensed or principally garaged. This includes those “autos” you acquire ownership of after the policy begins provided they are required to have No-Fault benefits in the state where they are licensed or principally garaged.
Only those “autos” you own that because of the law in the state where they are licensed or principally garaged are required to have and cannot reject Uninsured Motorist Coverage. This includes those “autos” you acquire ownership of after the policy begins provided they are subject to the same state uninsured motorists requirement.
Only those “autos” described in Item Three of the Declarations for which a premium charge is shown (and for Liability Coverage and “trailers” you don’t own while attached to any power unit described in Item Three). You must report all new acquisitions to your agent immediately.
Only those “autos” you lease, hire, rent or borrow. This does not include any “auto” you lease, hire, rent, or borrow from any of your “employees”, partners (if you are a partnership), members (if you are a limited liability company) or members of their households.
Only those “autos” you do not own, lease, hire, rent or borrow that are used in connection with your business. This includes “autos” owned by your “employees” partners (if you are a partnership), members (if you are a limited liability company), or members of their households but only while used in your business or your personal affairs.
The conduct of an Insured with respect to a current, prospective or former employee that allegedly culminated in:
(1) Wrongful termination (including constructive discharge) of an employee
(2) Violation of any state, federal or local civil rights, anti-discrimination law, or fair employment practices law (including, by way of example of federal laws, but not limited to Title VII of the Civil Rights Act of 1964 and the amendments thereto, the Age Discrimination in Employment Act, the Fair Labor Standards Act, Family Medical Leave act of 1992, the Uniform Services Employment and Re-employment Rights Act and the Fair Credit Reporting Act.
(3) Commission of a common law tort arising out of and in the course of employment except to the extent that the tort allegedly results in bodily injury or property damage.
A provision found in many claims-made policies specifying that the policy will not cover injuries or damages which occurred prior to the retroactive date even if the claim is first made during the policy period.
Policies written on a claims-made basis cover claims reported or filed during the year the policy is in force for any incidents which occurred that year or during any previous period if the incident occurred on or after the retroactive date.
Equipment Breakdown insurance covers direct damage to covered property when caused by a covered cause of loss. Covered property means any property that is owned by the named insured or is in the named insured's care, custody, or control and for which the named insured is legally liable. Covered cause of loss means a sudden and accidental breakdown of the insured's boiler, machinery or equipment or any part of the equipment described in the policy. Equipment Breakdown insurance is necessary because commercial property policies exclude explosion of steam boilers and breakdown of machinery.
The standard Equipment Breakdown (Boiler and Machinery) policy contains three extensions of coverage. These three extensions are:
1) Expediting Expense coverage pays the reasonable extra cost incurred to expedite progress after a loss;
2) Water Damage coverage provides for damage to covered property as a result of an accident to covered air conditioning vessels and piping; and
3) Defense Cost and Supplemental Payments which would apply when the insurer is defending the insured against claims or suits alleging liability for damage to property of others.
Expediting Expenses and Water Damage coverages have separate limits but are included in the policy limit. Defense Costs and Supplementary Payments are payable in addition to the policy limit.
When referenced on the policy, Equipment Breakdown Coverage also includes:
Oftentimes, coverage can be extended to include business income, extra expense, and stock spoilage caused by a covered accident.
When this form is purchased, coverage is provided for boilers, fired or unfired pressure vessels, refrigeration or air conditioning equipment, and any mechanical or electrical equipment. Manufacturing and processing machinery and equipment may be included. This form can provide blanket coverage over many types of equipment or limited to specific types of equipment.
This coverage can be written under the small business form to cover boilers and pressure vessels, including or excluding air conditioners/compressor units. Due to the very limited nature of coverage provided under this form, this may not be appropriate for most businesses.
This coverage is also written for smaller businesses. Many insured’s refer to this form as the comprehensive form for small business since it covers a broader range of equipment. Coverage is provided for boilers, fired or unfired pressure vessels, refrigeration or air conditioning equipment, and any mechanical or electrical equipment excluding production or process machinery. Since production and process machinery is excluded under this form, many clients will need to purchase the comprehensive coverage form described to obtain adequate coverage.
This endorsement can be written to provide coverage on either a “Valued” or an “Actual Loss Sustained” basis. When the actual loss sustained option is used, the coverage pays only for the insured’s actual loss of income. If coverage is written using the valued option, the insured is able to collect a predetermined amount of coverage for each day the business is interrupted because of an accident to an insured object. The coverage is subject to a per accident limit and a deductible that can be expressed as either a specified time period or a dollar amount. When the valued form is used the daily amount of insurance is paid regardless to the actual amount of loss.
This endorsement pays for the extra expense of maintaining operations after an accident to a covered object until normal operations can be restored. This endorsement excludes coverage for loss of income. Optional coverage for loss of income including extra expense is available.
This endorsement covers loss due to spoilage of specified property from lack of power, light, heat, steam or refrigeration, which results from an accident to an insured item.
Coverage can be written with more than one deductible. The insured can choose one deductible for a group of covered items and a different deductible for all other items. If a loss occurs involving more than one covered item, the higher deductible would apply.
Umbrella liability insurance provides excess liability coverage over several of the insured's primary liability policies. Most umbrella liability policies provide coverage that is broader than the insured's primary policies. An excess liability policy may be what is called a following form policy, which means it is subject to the same terms as the underlying policies; it may be a self-contained policy, which means it is subject to its own terms only; or it may be a combination of these two types of excess policies. Umbrella policies have three functions: (1) To provide additional limits above the each occurrence limit of the insured's primary policies; (2) To take the place of primary insurance when primary aggregate limits are reduced or exhausted; and (3) To provide broader coverage for some claims that would not be covered by the insured's primary insurance policies, which would be subject to the policy retention. Most umbrella liability policies contain one comprehensive insuring agreement. The agreement usually states it will pay the ultimate net loss, which is the total amount in excess of the primary limit for which the insured becomes legally obligated to pay for damages of bodily injury, property damage, personal injury, and advertising injury.
This amount is the most an insurer will pay under Part II for all claims arising from any one accident, regardless of how many employees are involved in the accident. The standard limit is $100,000 for any one accident, which can be increased.
This is the aggregate limit the insurer will pay under Part II for all claims sustaining bodily injury by disease during the policy period. The standard policy limit is $500,000, which can be increased.
This amount is the most an insurer will pay under Part II for damages due to bodily injury by disease to any one employee. The standard limit of liability for each employee is $100,000, which can be increased.
This provides workers’ compensation coverages if the insured expands operations into other states not declared at the time the policy is issued or renewed. If the insured elects this coverage and operations begin in a state listed under other states, the insurer provides the same coverage as if the state was declared in the policy at the time of policy issuance. This does not apply to the monopolistic states of OH, WV, WA, ND, and WY. The insured must report operations at new locations as soon as possible.
Workers’ compensation laws of most states exempt some types of employment from workers’ compensation benefits. This endorsement amends the standard policy to provide coverage for employees with exempted occupations from the workers’ compensation act. When the endorsement is added it does not make employees subject to the workers’ compensation law, but it obligates the insurance company to pay on behalf of the insured, an amount equal to the compensation benefits that would be payable to those employees if they were subject to the workers’ compensation law of that state.
This is a federal act which is similar to the state workers’ compensation act. The federal act was designed to provide workers’ compensation benefits to employees who work in maritime employment upon the navigable waters of the United States and who are usually considered outside the scope of state workers’ compensation laws. When the USL&H endorsement is added to the standard policy it applies to work done in the states scheduled on the policy and extends the definition of the workers’ compensation law to include the USL&H benefits.
In some states, workers’ compensation law allows an insured to include or exclude Executive Officers and Partners, or both, from coverage. Adding this endorsement can designate the individuals not covered under the policy.
This is a factor that deals with the rating of the policy. The Experience Modification figure is based on the insured's loss experience. The factor is used to increase or decrease the manual rates of insurance.
There are five states that require all workers’ compensation insurance to be placed with their state fund. No private insurer is allowed to write Workers’ Compensation Coverage in the five states. The states are North Dakota, Ohio, Washington, Wyoming and West Virginia. If you have employees or operations in a monopolistic state, you will need optional supplemental Employers Liability coverage.