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ENC2024-0025
J THREE BY BERKSHIRE HATHAWAY How THREE Meets Your Insurance Requirements Your vendor has purchased a THREE policy from Berkshire Hathaway Direct Insurance Company (BHDIC). The THREE policy form is novel it's three pages long and does away with much standard insurance industry jargon. It grants coverage across multiple lines, and does not contain many of the standard exclusions. As such, many endorsements that are needed to "add back" coverage are unnecessary as those items are never excluded in the first place from the grant of coverage. We have worked with RealPage to memorialize examples of these for your records, and for that reason, you will find a copy of this document in place of any required endorsement. In reviewing a THREE policy, you should be aware that the policy's "Summary Page" is legally equivalent to a "Declarations Page" and is part of our policy form. The policy does not have any job site or other location restrictions on coverage. We can also confirm there are no residential exclusions associated with a THREE policy. We created THREE to make it easier to know what is covered, and to do away with many technical distinctions of add -backs and carve -outs. While the product is novel, THREE is backed by Berkshire's superior financial strength, as BHDIC is Rated A++ by AM Best. General Liability Requirements: The policy form 3PG 00 01-01/21 contains an automatic additional insured provision. If there is a written agreement/contract signed by our insured prior to the commencement of work that requires additional insured status for ongoing operations, additional insured status is granted on a blanket basis equivalent to CG 20 10 04 13. In addition, the coverage is primary and non- contributory as required and a waiver of subrogation is included when required equivalent to CG 20 01 04 13 and CG 24 04 10 93. The policy form 3PG 00 01-01/21 contains an automatic additional insured provision. If there is a written agreement/contract signed by our insured prior to the commencement of work that requires additional insured status for completed operations, additional insured status is granted on a blanket basis equivalent to CG 20 37 04 13. In addition, coverage is primary and non- contributory as required and a waiver of subrogation is included when required equivalent to CG 20 10 04 13 and CG 24 04 10 93. The THREE policy itself does not distinguish between ongoing/completed operations, and does not have any job site or location restrictions on work. si THREE BY BERKSHIRE HATHAWAY Auto Liability Requirements: The policy form 3PG 00 01-01/21 contains an automatic additional insured provision. If there is a written agreement/contract signed by our insured prior to the commencement of work that requires additional insured status for auto liability, additional insured status is granted on a blanket basis equivalent to CA 20 01 10 13. In addition, the coverage is primary and non- contributory as required and a waiver of subrogation is included when required equivalent to CA 04 49 11 16 and CA 04 44 03 10. Workers Compensation Requirements: The policy form 3PG 00 01-01/21 contains an automatic waiver of subrogation provision. If there is a written agreement/contract signed by our insured prior to the commencement of work that requires a waiver of subrogation, waiver of subrogation is granted on a blanket basis equivalent to WC 00 03 13. Pete Shelley President, BHDIC Brad Rosen Counsel, BHDIC THREE BY BERKSHIRE HATHAWAY © 2020 Berkshire Hathaway Direct Insurance Company, dba THREE. All rights reserved. THREE P.O. Box 34987 Omaha. Nebraska 68134 Laurie McGinley From: Abraham Han <ahan@cjpia.org> Sent: Thursday, February 29, 2024 1:08 PM To: Laurie McGinley Subject: RE: La Quinta Insurance Question: Towers Electric You don't often get email from ahan@cjpia.org. Learn why this is important EXTERNAL: This message originated outside of the City of La Quinta. Please use proper judgement and caution when opening attachments, clicking links or responding to requests for information. Hi Laurie, Good catch! Sounds good and no worries! I'll stand by. Have a great rest of the week and weekend! Thanks, Abraham Han, ARM Senior Fisk Manager Da€iforrlia J0iril Powers Insurance Authority 8081 Moody Street_ La Palma, CA 90623 t 562.467.3778 rat 552.455.9640 C A I. r F 0 R N I A ahanQrj#ia.org cjpia.cr0 From: Laurie McGinley <Imcginley@laquintaca.gov> Sent: Thursday, February 29, 2024 12:24 PM To: Abraham Han <ahan@cjpia.org> Subject: RE: La Quinta Insurance Question: Towers Electric *CAUTION: External Sender. Do not click links or open attachments unless you recognize the sender and know the content is safe.* Hi Abe, That makes sense. I did see this highlighted language in the certificate: The policyt;}rm 3PG W 01-01/21 cutsrains an Automatic Wl�-Aiulsai insweLlprovision. Iftlsare is a written agreemetsC'coAtract signed by our insw-ed prior to die commencement of work that t-,,,quires additional insured status for onSoiug operations_ additional insured status is granted on a blznkct basis cquivalout to CO 20 10 04 13. In addition. the coverage is primary and non- contributory as requircd and a waive of subrogation is inchidcd whcn requirA Cquivalent to CG 20 (1 l 04 13 and C'G 24 04 10 1�3. We will reach back out to them to see if we can get clarification or additional policy information, and I will let you know if we have further questions. Thank you so much for your time and quick responses!! Have a great upcoming weekend if we don't speak before. Laurie McGinley I Deputy City Clerk City Clerk's Office City of La Quinta 78495 Calle Tampico - La Quinta, CA 92253 Ph. 760.777.7123 Main: 760.777.7000 www.laquintaca.gov From: Abraham Han <ahan@cipia.org> Sent: Thursday, February 29, 2024 12:10 PM To: Laurie McGinley <Imcginlev@laquintaca.gov> Subject: RE: La Quinta Insurance Question: Towers Electric You don't often get email from ahan@cipia.org. Learn why this is important EXTERNAL: This message originated outside of the City of La Quinta. Please use proper judgement and caution when opening attachments, clicking links or responding to requests for information. Hi Laurie, Thanks for checking in. I only had one other regional risk manager hear of THREE. She mentioned that the one thing the policy did not address for her member agency was an endorsement for primary/non-contributing (i.e., coverage provided by permittee is primary and insurance maintained by the City shall not be required with it). Since that seemed to be a sticking point in her experience, I think that primary/non-contributing portion might be good to double check. Other than that, it is a bit difficult to say whether the policy would suffice. If there is a policy or even a draft policy available, I could take a quick glance. However, I believe you previously mentioned that only the two attachments were provided. Thanks, Abraham Han, ARM Senior Risk Manager California .taint Powers Insurance Authority 8081 Moody Street. La Palma, CA 90623 t 562.467.8778 m 552.455.9840 :-A i I F 47 R -N[ A ahan Cjpia.org cjpia.or0 000 From: Laurie McGinley <Imcginley@lag uintaca.gov> Sent: Thursday, February 29, 2024 11:59 AM To: Abraham Han <ahan@cipia.org> Cc: Laurie McGinley <Imcginley@laquintaca.gov> Subject: RE: La Quinta Insurance Question: Towers Electric *CAUTION: External Sender. Do not click links or open attachments unless you recognize the sender and know the content is safe.* Hi Abe, I wanted to see if you were able to obtain any additional information on the "THREE" document? The applicant is anxious for our response. Thank you! Laurie McGinley I Deputy City Clerk City Clerk's Office City of La Quinta 78495 Calle Tampico - La Quinta, CA 92253 Ph. 760.777.7123 Main: 760.777.7000 www.laquintaca.gov From: Laurie McGinley Sent: Wednesday, February 28, 2024 3:47 PM To: Abraham Han <ahan@clpia.org> Subject: RE: La Quinta Insurance Question: Towers Electric Hi Abe, No other documents were provided — thank you for looking into this! Laurie McGinley I Deputy City Clerk City Clerk's Office City of La Quinta 78495 Calle Tampico - La Quinta, CA 92253 Ph. 760.777.7123 Main: 760.777.7000 www.laquintaca.gov From: Abraham Han <ahan@cipia.org> Sent: Wednesday, February 28, 2024 3:44 PM To: Laurie McGinley <Imcginlev@laquintaca.gov> Subject: RE: La Quinta Insurance Question: Towers Electric You don't often get email from ahan@cipia.org. Learn why this is important EXTERNAL: This message originated outside of the City of La Quinta. Please use proper judgement and caution when opening attachments, clicking links or responding to requests for information. Hi Laurie, I have never seen something like that. At first glance, it looks like there could be issues. However, I will ask around to see if it might suffice. Were there any other documents provided (aside from the two attachments in your email)? In particular, I'd be curious to review the Berkshire Hathaway's policy forms (if they have already been provided). Thanks, Abraham Han, ARM Senior Risk Manager California Jaint PiDwers Insurance Authority 8081 Moody Street. La Palma, CA 90623 t 562.467.8778 m 562.455.9840 i I r L) R N I A ahan cjpia.org I'- . , . ,� cjpia.org From: Laurie McGinley <Imcginley@lag uintaca.gov> Sent: Wednesday, February 28, 2024 2:44 PM To: Abraham Han <ahan@clpia.org> Cc: Laurie McGinley <Imcginley@laquintaca.gov> Subject: La Quinta Insurance Question: Towers Electric *CAUTION: External Sender. Do not click links or open attachments unless you recognize the sender and know the content is safe.* Hi Abe, Our Associate Engineer, Amy Yu, sent the below email and attachments. I have never seen a document explaining why the insurance carrier (Berkshire Hathaway) doesn't need to provide endorsements, however, the letter seems to confirm the endorsements apply to the policy. The City is requesting insurance in order to issue an encroachment permit to Towers Electric (named insured). Will this letter suffice in place of endorsements? Please give me a call if you'd like to discuss or if you have any questions. Thank you!! Laurie McGinley I Deputy City Clerk City Clerk's Office City of La Quinta 78495 Calle Tampico - La Quinta, CA 92253 Ph. 760.777.7123 Main: 760.777.7000 www.laquintaca.gov From: Amy Yu <Ayu@laguintaca.gov> Sent: Wednesday, February 28, 2024 1:34 PM To: Monika Radeva <mradeva@laquintaca.gov>; Laurie McGinley <Imcginlev@lag uintaca.gov> Subject: Insurance - Towers Electric Hi Monika or Laurie Can you let me know if the attached insurance endorsements are good. His insurance company said that the information at the bottom of the certificate is enough to cover the endorsements. They also sent him the attached document explaining why that is. Thank you 0 Amy Yu I Associate Engineer City of La Quinta - Public Works J4 16 a, W"a 78495 Calle Tampico - La Quinta, CA 92253 (;ALIFOKNIA ! Ph. 760.777.7047 Main: 760.777.7000 www.laquintaca.gov www.playinlaquinta.com From: Edgar Torres <info@towerselectricians.com> Sent: Wednesday, February 28, 2024 12:35 PM To: Amy Yu <Avu@laquintaca.gov> Subject: Re: ISSUED Encroachment Permit ENC2024-0025 - Replace IID Vault Lid on Hwy 111 and Costco Dr - Towers Electric My insurance company said that the information at the bottom of the certificate is enough to cover the endorsements. They also sent me a document explaining why that is, I attached it. On Tue, Feb 27, 2024 at 3:09 PM Amy Yu <Ayu@laquintaca.gov> wrote: Hi Edgar, Do you have the three endorsements? Please email them to me. Thank you O General Liability — Additional Insured Endorsement (for ongoing and completed operations) O General Liability — Primary / Non-contributory Endorsement O Workers' Compensation —Waiver of Subrogation Endorsement Amy Yu I Associate Engineer ta 0"Cra City of La Quinta - Public Works CALIFORNIA 78495 Calle Tampico - La Quinta, CA 92253 Ph. 760.777.7047 Main: 760.777.7000 www.laquintaca.gov www.playinlaquinta.com