Yesterday's Wall Street Journal article outlines a tragic elevator incident resulting in one fatality and several injuries. This event should spark the interest of all building owners to examine how their own "contractual risk management program" will be effective in insulating the Building Owner against such events. Many organizations have programs in place that purport to obtain indemnity and insurance from vendors but in practicality, it is often overlooked and almost never audited for compliance. When it comes to Elevator Maintenance Companies many attempts to provide a separate "Owners & Contractors Protective" policy (OCP) in lieu of extending their own coverage and affording the more traditional "additional insured" status.
In a disturbing ruling by the Georgia Court of Appeals on October 5th 2011, the interpretation of language in an OCIP Program sponsored by the Atlanta Hartsfield Jackson International Airport was held to create a third-party beneficiary relationship for the estate of the injured worker. The contract stated the city's OCIP was "to provide one master insurance program that provides broad coverages with high limits that will benefit all participants involved in project".