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The Chubb Difference - Chubb Group of Insurance Companies

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					                                                                                   business insurance
                                                                                           real estate



Real Estate: The Chubb Difference
no two properties are alike.
no two insurance companies are alike either.
                      Take a look at the Chubb difference in the response to these
                      potential claims.

                      PROPERTY

                      Event
                      an electrical fire occurred in a nonsprinklered, low-rise office building. although the
                      fire department was on site quickly, the fire burned out of control, and the building was
                      a total loss. When the building owner contracted to have the building rebuilt, it was
                      discovered that the municipality had an ordinance in effect stating that all commercial
                      buildings must be sprinklered.

The Chubb Difference
chubb’s Customarq property policy provided replacement cost to rebuild the building, including the cost to
comply with the ordinance or law, up to the policy limit.

Event
a sprinkler pipe burst on the third floor of an office building. the building sustained considerable water
damage on the first three floors. the building owner sustained $750,000 in physical damage loss to the
building and loss of rental income.

The Chubb Difference
Customarq’s broad, all-risk property/income perils, including pipe burst, helped protect the building
owner and paid for the damage to the building. Once the building was restored, it took six months to find
replacements for the tenants who had moved out, which resulted in a significant loss of income. chubb’s
business income insurance includes an unlimited period of indemnity and provides protection as long as it
takes to restore the business to the level that would have existed had no loss occurred.

Event
a fire damaged a leeD®-certified building. there was damage to the building, including damage to solar
panels and compact fluorescent lighting. the total loss was $325,000.

The Chubb Difference
chubb’s broad replacement cost provision paid to repair or replace the property including the building, solar
panels and lighting.

Event
a blackout in the county caused a power failure in a retail shopping center. When the power was turned back
on, a power surge damaged the center’s electrical system.

The Chubb Difference
the center’s owner sustained loss of the electrical system and loss of rents since the buildings needed to be
closed for 90 days during the repairs. chubb’s property policy paid for the replacement of the electrical system
and the loss of rents.
GENERAL LIABILITY
Event
an office tenant was seriously injured by a contracted maintenance worker. a subsequent lawsuit alleged
that the insured was negligent in its hiring and security practices. the property was owned by a newly formed
partnership of the named insured.

The Chubb Difference
chubb’s Customarq General liability policy provided protection arising from the acts of independent
contractors hired negligently and paid the $275,000 claim. in addition, the policy insured the newly
formed partnership.

Event
a guest of an office tenant fell and injured his back when exiting a malfunctioning elevator. the building owner
had a signed indemnity agreement in favor of the elevator service contractor.

The Chubb Difference
chubb’s Customarq General liability insurance includes insurance for the liability of another assumed by the
named insured in an oral or written contract. therefore, chubb paid the injured party’s $250,000 claim against
both the building owner and the elevator service company.

Event
a real estate management company was renting space from others for its own use. an employee left a faucet
running all night, causing extensive water damage to the occupied rented building.

The Chubb Difference
chubb’s Customarq General liability insurance included the liability for damage to rented premises on an all-
risk basis (not limited to fire) and paid the $75,000 claim.

EQUIPMENT BREAKDOWN
Event
each building within a retail-shopping complex has cooling towers as part of its heating and ventilation
system. a ground fault failure of the utility’s 69,000-volt system created a surge that caused various circuit
breakers in the buildings to trip, including those used for the operation of the cooling towers’ motor driven
pumps. as a result, there was no water circulation. the outside temperature was below freezing, and the water
in the system caused the coils to freeze and split.

The Chubb Difference
chubb’s Customarq property policy included insurance for mechanical breakdowns and responded to the
replacement of the coils, at a cost of $150,000.

Event
an elevator service company was called to a 12-story office building when employees noticed a large amount
of oil coming from one of the hydraulic elevators. it was determined that the hydraulic cylinder sustained
a large crack and required replacement. the cause of the occurrence was the loss of hydraulic oil due to
electrolysis of the unprotected hydraulic cylinder.

The Chubb Difference
chubb’s Customarq property policy included insurance for mechanical breakdown and responded to the
replacement of the hydraulic cylinder for $79,000. in addition, the policy paid for the costs incurred to rent a
crane, buy roofing material and clean up the oil spill, which added $25,000 to this mechanical
breakdown claim.

Event
a generator was started as part of a building’s monthly testing regimen. shortly after starting, the diesel
generator began to shake and vibrate violently. Personnel began to see wires flying out of the generator along
with smoke and fire, and the generator was immediately shut down. the cause of the problem was an insulator
in the exciter. it broke off, causing a field coil to unravel and short out the generator.
The Chubb Difference
chubb’s Customarq property policy includes insurance for electrical failure and paid the $126,000 cost for the
generator to be partially rewound.

ENVIRONMENTAL LIABILITY
Event
During a severe storm, a 15-story office building sustained water damage. the HVac equipment
malfunctioned, creating an environment conducive to mold growth. Within days, a noticeable odor permeated
the office building. significant property damage occurred when tenants’ rugs, drapes and furnishings were
reportedly contaminated.

The Chubb Difference
the real estate owner was found liable for damage. chubb’s environmental liability insurance paid for the
property damage, as well as the remediation costs to mitigate the mold growth. the claim was settled
for $650,000.

Event
a tank failure caused the release of 1,000 gallons of heating oil into the basement of a managed building.
contamination was widespread and resulted in the damage of a tenant’s furniture inventory. cleanup of the
spill and repair of damaged equipment required the building to shut down operations for one week.

The Chubb Difference
chubb’s environmental liability policy paid the $200,000 property damage, as well as $125,000 for remediation
costs. additionally, the management firm incurred a $100,000 claim for business interruption and extra
expense due to loss of rents.

UMBRELLA & EXCESS
Event
an apartment manager considered an application from a biracial couple and denied their application based
on a falsified credit check. the couple sued the apartment owner claiming discrimination based on race. the
apartment owner’s primary general liability definition of personal injury did not include discrimination and
denied the claim.

The Chubb Difference
Given the lack of primary liability insurance for discrimination in the insured’s underlying liability program,
chubb’s umbrella policy for the apartment owner responded by dropping down pursuant to the terms of
coverage b to pay the $200,000 claim.

Event
a tenant in a condominium complex fell down an improperly lit interior stairwell, sustaining multiple
permanent injuries. the tenant sued the condominium owner for negligence. a jury found the condominium
owner negligent and awarded $3,500,000 for injuries, pain and suffering.

The Chubb Difference
Given the size of this claim, chubb’s umbrella policy, under coverage a, responded to pay the amount of loss
in excess of the primary general liability policy.

Event
a senior partner driving a company-owned vehicle to a client meeting ran a red light and hit an oncoming
vehicle. the operator of the oncoming vehicle suffered multiple permanent injuries and sued the real estate
management firm for pain and suffering. the real estate management firm was found liable for $1.7 million.

The Chubb Difference
chubb’s umbrella policy responded to pay the amount of loss in excess of the primary auto liability policy.
WORKERS COMPENSATION
Event
a long-term employee tripped on a cracked sidewalk outside corporate headquarters. the employee suffered
a foot fracture and required an air cast for two months.

The Chubb Difference
in addition to paying the claim, chubb provided the insured with a thorough slip-and-fall loss prevention
program, which included an analysis of the loss, review of exposures, testing of floor characteristics and
an evaluation of current management practices and procedures. a recommendation for improvement was
developed to address the cause of this injury and to help avoid future losses. in addition, via the internet,
chubb’s claimView tool gave the client’s producer an up-to-the-minute “snapshot” of his claim.

Event
a 26-year-old maintenance worker climbed up a ladder to replace a light fixture at a mall. He fell and broke his
leg in two places. He required extensive physical therapy during his period of recovery.

The Chubb Difference
through the use of cHubbFirst, chubb’s first-notification-of-loss reporting system, the client was able to
report the claim quickly and easily via a toll-free number.
chubb’s return-to-work program identified tasks that could be performed by the injured employee, which
helped enable him to return to the workplace while he regained his previous work capacity and thus reduced
the workers compensation claim.

AUTOMOBILE
Event
a president of a real estate firm flew to another city to investigate a potential acquisition. While there, he
rented an automobile and was involved in an accident that resulted in a total loss to the rental vehicle.

The Chubb Difference
the real estate firm’s commercial automobile policy from chubb paid for any liability for injuries to others and,
with the purchase of Hired car Physical Damage protection, also paid the direct damage to the
rented automobile.

Event
an employee operating her own vehicle to conduct a site survey crossed a median and struck an oncoming
vehicle, causing multiple fatalities. the employee had minimal personal automobile limits, and the real estate
firm was sued by the estates of the deceased.

The Chubb Difference
the real estate firm was found liable for $1 million. chubb’s commercial auto policy responded and paid
the claim.




                Chubb Group of Insurance Companies | www.chubb.com

                chubb refers to the insurers of the chubb Group of insurance companies underwriting coverage: Federal insurance company, Vigilant
                insurance company, Great northern insurance company, Pacific indemnity company, northwestern Pacific indemnity company, texas
                Pacific indemnity company, executive risk indemnity inc., executive risk specialty insurance company, chubb custom insurance
                company, chubb indemnity insurance company, chubb insurance company of new Jersey, chubb national insurance company,
                chubb lloyds insurance company of texas. not all insurers do business in all jurisdictions. this literature is descriptive only. actual
                coverage is subject to the language of the policies as issued.
                Form 84-01-0003 (rev. 12/12)                                                                          Printed on recycled paper

				
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posted:10/6/2013
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