Assignment task:
Complete the following assignment in groups of no more than 4. Note the due date for the case study and refer to your detailed class schedule for the submission requirements. The length of your paper should be dependent on your answer but must be detailed enough to explain your answer using concepts discussed in this class. This assignment is worth a total of 5% of your final grade.
Late submission penalties apply.
The William Schiller Mfg. Co.
The Williams Schiller Mfg. Co. is a major manufacturer of air-conditioning equipment. It manufactures, under the famous "WILLCHILL" label, a wide range of air-conditioners and associated equipment for industrial, commercial and domestic use.
It has a plant in a small Canadian city which employs about 800 persons. The plant is surrounded by a protective fence and has a main gate manned by security guards. Parking is provided for employees and visitors. There is a shipping dock where transport trucks are loaded and unloaded. The plant is also serviced by a railway sidetrack.
It is primarily an assembly plant, but some fabrication work is performed. Parts such as electric motors are purchased from other manufacturers. There is an employee cafeteria, a first aid station and a company nurse. The company sponsors employee baseball and hockey teams.
WILLCHILL products are distributed and sold across Canada, with some export business to the United States, and to some Caribbean countries. The company has a network of sales personnel and agents, and operates sales offices in several major cities. Most of the sales are to firms in the construction business, but there are also substantial sales of domestic air-conditioners. The firm is also developing sales of automobile air conditioning units. The company does extensive advertising.
You are an insurance broker handling the WILLCHILL account, and since the company does not have its own risk manager, you are expected to perform this function.
1. Identify ten (10) liability exposures that this client may have.
2. Outline a proposed liability insurance program for our client. Explain in detail the basic coverages, and indicate the relevant exclusions from the Commercial General Liability policy.
3. Your proposed insurance program has been accepted and is now in place. The following incidents occur during the period of insurance. In each case explain how your insurance policy(ies) would respond.
a. The insured sold a large air-conditioning unit to be installed in a new hotel being built on a Caribbean island. There were persistent problems with its operation resulting in a month's delay in the opening of the hotel. The insured is being sued in Canada for loss of revenue.
b. Several of the automobile air-conditioning units sold to a car manufacturer malfunctioned. The car manufacturer was concerned enough to recall 500 cars. It demands that your insured pay the costs of the recall.