Coatings Care® — Insurance Program Frequently Asked Questions

Is NPCA endorsing a new insurance program?
Yes. Beginning Nov. 1, 2004 NPCA members in operational* compliance with Coatings Care ® became eligible for a discount of up to 5 percent on Commercial General Liability and Commercial Automobile coverage when placed through Coatings Industry Services, Inc.

Why did NPCA take this step?
The association wanted to pursue the paint and coatings industry's interest in maintaining affordable company insurance and consistent, adequate, appropriate coverage for critical business risks.

This effort takes advantage of innovative, industry-wide practices and programs, like Coatings Care®, that embody the industry's commitment to sound risk management practices in devising formal endorsements and/or insurance vehicles. It also fosters existing relationships with CIS, Inc. an independent carrier, and XL Environmental, underwriting organizations that have familiarity with the coatings industry and its practices.

How does the discount work?
The credit applies only to the Coatings Care® Operational program*, and compliance with Coatings Care® will be verified by XL Insurance, the underwriter. Also, the amount of the 5 percent credit applicable will be determined by the underwriter, based on the degree of compliance with Coatings Care® on a case-by-case basis.

Is this program industry-wide?
No. Only NPCA member companies that have demonstrated an operational program* in compliance with Coatings Care® are eligible.

I currently have commercial auto and general liability insurance. Can I still receive the discount?
Companies that currently have commercial auto and general liability coverage must wait until their current policy expires to be eligible for the discount beginning on the inception date of their renewal, if eligibility is satisfied.

* It is important to note that implementation of Coatings Care® at the “operational level” will vary from company to company depending on the various processes and operations within that particular facility.

The Coatings Care® program has five management practice codes which include: Product Stewardship, Environmental Management, Transportation & Distribution, Community Responsibility, and Security. For each of these codes there are defined “levels of implementation”:

• Awareness - for developing an understanding of the program requirements,
• Developmental - for the initial effort to establish an appropriate response to identified program requirements,
• Operational - for completing the effort to meet program requirements, and
• Re-evaluating - for seeking continuous improvement in performance.

If a company has evaluated each code, determined what aspects apply to their business, and implemented each of the management practices that do apply to the business from initial “Awareness” through initial “Developmental” steps and put in-place appropriate “Operational” program elements, they are implementing Coatings Care® at an operational level.