4 - Commercial Insurance Coverages Flashcards
(36 cards)
Business owners can be legally liable for four (4) losses to third-parties:
- bodily injury
- property damage
- personal injury
- advertising injury
The Commercial General Liability (CGL) is designed to protect a business against potential law suits over the negligent acts of the business. The policy covers two (2) significant areas of liability:
- Premises and Operations Exposure
- Products Liability and Completed Operations
The Commercial General Liability policy comes in 2 forms:
- Occurence Form
- Claims-Made Form
The premium for the Supplemental Extended Reporting Period (SERP) may not exceed _______ of the original annual premium for the base policy.
-200%
In Crime Coverage Forms, “burglary” must include all of the following
- Unlawful entering
- Visible damage to the exterior of the building
- forced exit
Under the Commercial General Liability (CGL) policy, if the insured receives notice of a claim or suit, he or she must:
-Notify the insurer
Judicial Bonds include:
- Fiduciary Bonds
- Court Bonds
- Public Official Bonds
- License and Permit Bonds
Under Workers’ Compensation, if a worker is disabled for 22 days, how many days of benefits will be paid?
-22 days
The Self Insured Retention (SIR) in the Commercial Umbrella:
-is paid only when the Commercial Umbrella is primary coverage
The removal of a safe from a building during a break-in is referred to as which of the following?
-safe burglary
Included in the basic premium for the Garage Policy are all of the following:
- Premises and Operations
- Products and Completed Operations
- Automobile Liability
Under the Commercial General Liability (CGL) Claims-Made form, the Basic Extended Reporting Period covers Claims-Made after the end of the policy period if the loss is reported within how long after the end of the policy period?
-60 days
The Commercial Umbrella policy is designed to:
-cover the insured’s liability for losses to third parties that the insured is responsible for
The Business Auto Policy (BAP) can be used to insure all of the following
- Trucks
- Trailers
- Semis
Crime Coverage Form A:
-coverage for loss of money or property due to the dishonest acts of an employee
Crime Coverage Form B:
-coverage for forgery or alteration of an insured’s checks, drafts, promissory notes
Crime Coverage Form F:
-covers loss of and loss from damage to money, securities and other property by computer fraud committed by someone outside of the insured’s premises
Which of the following would automatically be included in the Business Auto Policy (BAP)?
-Overturn (Collision Coverage)
The Basic Extended Reporting Period in a Claims-Made policy will allow how long of an extension to file claims in the policy?
-5 years
Commercial General Liability (CGL) Coverage B covers which of the following risks?
This provides liability coverage in case the insured has “infringed” on the rights of others. For example, the insured may have used copyrighted material in an advertisement.
How soon after the end of a Commercial General Liability (CGL) Claims-Made policy period will the Supplemental Extended Reporting Period (SERP) have to be purchased if the insured would like this coverage?
-30 days
A Fidelity Bond is considered to be akin to __________ protecting the employer from employees.
-crime insurance
Loss of consortium is the legal right of the injured employee’s spouse to sue the employer for loss of the employee’s companionship. This is not covered by _______
-Workers’ Compensation
The Commercial General Liability (CGL) policy covers all the following
- medical payments
- personal and advertising injury
- bodily injury
