Wrecking--Buildings or Structures

What Does GL Code 99986 Cover?

ISO GL class code 99986 covers businesses engaged in the demolition or wrecking of buildings and other structures. This class specifically includes operations involving the dismantling, razing, or removal of structures, often requiring specialized equipment and adherence to strict safety protocols. It encompasses the entire process from site preparation to debris removal, classifying the inherent general liability exposures.

Who Uses This Class Code?

This code applies to demolition contractors, wrecking companies, structural dismantling specialists, and businesses involved in the controlled implosion or deconstruction of buildings. It also includes firms that perform interior demolition, selective demolition, or site clearing as part of larger construction or redevelopment projects.

Common GL Claims for This Class

Common GL claims for wrecking and demolition businesses include property damage to adjacent structures from falling debris or uncontrolled collapse, bodily injury to third parties or passersby due to inadequate site security, and environmental contamination claims from improper handling of hazardous materials discovered during demolition.

Coverage Tips for Code 99986

• Ensure adequate contractual risk transfer: Always require subcontractors to carry their own GL insurance with sufficient limits and name your company as an additional insured to protect against their negligence.
• Verify proper permitting and regulatory compliance: Demolition projects in Florida often require specific permits and adherence to environmental regulations; non-compliance can lead to significant fines and liability claims.
• Secure specific coverage for explosion, collapse, and underground (XCU) hazards: Standard GL policies may exclude these critical coverages for demolition work; ensure your policy explicitly includes XCU to cover risks like accidental explosions or structural collapses.
• Implement robust safety programs and training: Given the high-hazard nature of demolition, a comprehensive safety plan and ongoing employee training can significantly reduce the frequency and severity of claims, impacting your premiums.