The Vector Program provides general liability coverage for specified classes of trade contractors. The

program was designed to meet the needs of small to mid-sized subcontracting companies doing business

within the trades and construction industry. The Vector program does not cover contractors who hold an

active or inactive General Contractor’s or Builder’s License or contractors acting in the capacity of a General

Contractor, Builder, Project Manager or Developer. The scope of work is limited to the customary and

routine activities described in the selected classification.

Coverage applies only to the operations included in the classification of operations selected.

The policy excludes coverage and/or supplementary payments for defense or expense cost under any part of

the policy arising out of:

A. Operations which are not customary to the classification of operations shown in the

Policy Declarations;

work;

dwelling work prior to the certificate of occupancy;

Risk Canceled or Non-Renewed By Other Company - Refer to Company for prior approval. We

ask that full information regarding the reason for cancellation or non-renewal and the conditions

or preventive steps taken by the insured be submitted for our consideration.

Financial Underwriting - In some cases, we may request financial statements to determine the

acceptability of the risk. Businesses should be successfully operated for at least three years,

exhibit sound financial condition and have experienced management. Risk with fair, marginal or

poor ratings, should be referred to the Company.

Additional Insureds

All additional insureds must be approved by the Company and must be endorsed to the

policy. Additional Insured Endorsement Forms are only to be issued by the Company.

Special wording, including Primary Wording and Waiver of Subrogation is not

acceptable.

Audit Basis - General Liability premiums and exposures are subject to final audit. Earned

premium for the exposure will be determined at the end of the policy period.

A. Classification of Risk

Based on the applicant’s business operation and work performed, choose the eligible

classification(s) which describes the operation. Coverage applies only to operations that are

customary to the Classification(s) shown on the Policy Declarations. The applicant’s scope of

work is limited to the customary and routine activities described in the Classification(s) that are

selected. Any changes in the contractor’s business operations must be submitted to the Company

for approval and endorsement to the policy. Contractors performing work in more than 3

classifications or unrelated classifications are not eligible. Handyman risks are not eligible.

Contractors that hold a General Contractor’s or Builder’s license or otherwise acting in the

capacity of a general contractor, builder, project manager or developer are not eligible, whether

active or inactive. Misrepresentation of information will result in flat cancellation or voiding of

coverage. Questions regarding proper classification of business operations should be referred to

Company.

Subcontract Labor

Total payroll or cost for all sublet work must not exceed 10% of total receipts.

If the insured sublets any work, the insured must obtain Certificates of Insurance indicating

general liability including products and completed operations coverage with limits not less than

$100,000.

Operations performed by subcontractors without adequate insurance shall be classified and rated

under the specific classification of each operation in the same manner as though work was

performed by the insured’s own employees.

Incidental Sales Non-Related to Installation, Service or Repair shall not exceed 15% of total

receipts.

Time In Business - Business should be successfully operated for at least three years. Start-up

operations or new in business will be considered by providing information regarding prior

employer and three or more years prior experience in the same particular trade.

Prior Insurance - Prior expiring insurance is a trademark of a well run, financially sound business.

See General Liability rate section for rate modification for prior general liability coverage that may

apply. To qualify for discount, proof of prior insurance must be included with each new

application. Proof must be in the form of a General Liability declarations page,

renewal/nonrenewal notification or cancellation notice from prior carrier in applicant’s trade name

indicating an expiration or cancellation date less than 30 days from effective date of Bankers

policy. Prior coverage must have been in effect for at least six months.

The following risks are NOT eligible for coverage under the Vector Program:

1. Contractors that hold a General or Building Contractors license (B - License) whether active or

inactive.

2. Contractors acting in the capacity of a general contractor, builder, project manager or developer.

3. Contractors that work or have worked on NEW residential construction prior to:

a. The occupancy and possession of the property by the owner or tenant; or

b. The issuance of a certificate of occupancy; or

c. The notice of completion with appropriate State, County, City or Local agency; or

d. The final permit issued by the appropriate State, County, City or Local official or employee;

4. Applicant that has ever been named in a lawsuit alleging construction defects;

5. Applicant that has or had a negligent claim made against them for any construction defects, products

liability or other negligent claim;

6. Risks that perform exterior work on buildings exceeding three stories in height.

7. Risks that have an annual payroll in excess of $300,000.

8. Risks that have annual gross receipts in excess of $1,000,000.

9. Risks that work outside the state of domicile.

10. Risks that sublet more than 10% of their work to others.

11. Risks with less than 3 years’ experience in selected trade(s).

12. Risks engaged in the renting or leasing of equipment to others.

13. Risks engaged in selling or manufacturing if products sold under the insured’s name.

14. Risks that perform work on boats or ships.

15. Risks involving removal of any asbestos.

16. Risks sponsoring sporting or social events.

17. Risks that perform roofing work, including installation or repair of roof flashings, shingles, roof

coatings or paint.