50 Things You Need To Know About Commercial Insurance

Question 1

What three perils does the basic fire cover?

Answer 1

Explosion, lighting and fire.

Question 2

How is the peril of lighting broadened in the named perils form?

Answer 2

Includes damage to appliances

Question 3

How is the peril of explosion broadened in the names perils form?

Answer 3

Includes other types of explosions.

Question 4

What perils does the broad form cover?

Answer 4

Is all risk subject to the policy conditions and exclusions.

Question 5

What is professional liability insurance we use in our field as broker?

Answer 5

Errors and omissions.

Question 6

What is included under the definition of building?

Answer 6

Buildings editions fixtures and fittings maintenance supplies and growing plants.

Question 7

What is included under the definition of equipment?

Answer 7

Equipment content and tenants improvements

Question 8

What is included under the definition of stock?

Answer 8

Stock, merchandise, and packaging, wrapping, and advertising materials.

Question 9

What is the coverage amount based on For a builder’s risk

Answer 9

Completed value of the building

Question 10

What are three exclusions under glass insurance?

Answer 10

Fire, war, nucular

Question 11

What signs can be covered under a sign floater?

Answer 11

Exterior signs

Question 12

What does the by-laws exclusion do?

Answer 12

Excludes additional costs to rebuild in compliance with the by-laws

Question 13

What are two requirements that must be met before the farm building clause will pay the full amount of the Farm buildings?

Answer 13

Rebuilt within nine months and 200 feet from the original site

Question 14

How many months worth of rental value endorsements should be insured?

Answer 14

12 months

Question 15

What form would be used to cover stock? Where stock values are fairly consistent?

Answer 15

Is premium adjustment clause

Question 16

What form would be best used to cover stock where sales very substantially from month to month?

Answer 16

Peak season Endorsement

Question 17

What coverage does consequential loss consumption clause provide?

Answer 17

Covers loss due to failure of a Cold storage unit

Question 18

What does gross earnings form cover in the Event to the loss?

Answer 18

Loss of earnings from the date of the loss to the date the business reopens

Question 19

What does profit forms cover?

Answer 19

Loss of earnings from the date of the loss to the date profits return to what they were prior to the Loss

Question 20

What do extra expenses cover?

Answer 20

Cost associated with Keeping business open at another location

Question 21

What does the Contractors equipment floater cover?

Answer 21

Movable Equipment from site to site

Question 22

What does The contractor’s equipment floater cover?

Answer 22

moveable equipment from site to site

Question 23

What does a Tool Floater cover?

Answer 23

moveable tools from site to site

Question 24

What does the Boiler and Machinery Policy cover?

Answer 24

explosion and rupture of boilers and breakdown of machinery

Question 25

What does the term Floater mean?

Answer 25

a type of insurance that covers property that is easily moveable

Question 26

What does the Supplementary Payments section of the CGL cover?

Answer 26

defense costs, post-judgement interest, and other litigation expenses

Question 27

What is included in Theft?

Answer 27

Burglary and Robbery

Question 28

Does Burglary and Robbery include Theft?

Answer 28

No

Question 29

What does the 3D Policy cover?

Answer 29

employee dishonesty, disappearance, and destruction of property

Question 30

Does the 3D Policy cover safe burglary and robbery on the premises?

Answer 30

Yes

Question 31

What kind of losses does the Co-Insurance Clause concern itself with?

Answer 31

partial losses

Question 32

Who are the three parties to a bond contract?

Answer 32

Principal, Surety, and Obligee

Question 33

What do Fidelity Bonds cover?

Answer 33

dishonesty of employees

Question 34

What does Products Liability cover?

Answer 34

Lawsuits resulting from goods that cause injury or damage to the purchaser like defective or dangerous products

Question 35

What does Garage Liability pay for?

Answer 35

Garage Liability covers lawsuits resulting from the premises

Question 36

What does Stated Amount Co-Insurance Clause base the amount of insurance required on?

Answer 36

appraisal of the property’s rebuilding cost

Question 37

What is the Co-Insurance Clause formula?

Answer 37

did over (should x %) x loss

Question 38

What are the criteria set out in the 2% Waiver of Co-Insurance?

Answer 38

loss must be less than $5,000 and less than 2% of the did

Question 39

Why would Contingent Employers’ Liability be required?

Answer 39

when the employees are not covered by worker’s compensation

Question 40

Why would Owners & Contractor’s Protective Liability be required?

Answer 40

protects against a lawsuit resulting from the negligent work of sub-contractors

Question 41

Why would Blanket Contractual Liability be required?

Answer 41

when your business assumes the liability of others in a contract

Question 42

What coverage does By-Law Endorsement provide?

Answer 42

it removes the exclusion and allows the insurer to pay the increased cost to rebuild made necessary due to by-laws

Question 43

How does Stated Amount Co-Insurance Clause differ from the traditional Co-Insurance Clause?

Answer 43

based on appraisal and a specified value as opposed to percentage of rebuild

Question 44

What does Completed Operations Liability cover?

Answer 44

liability arising from faulty workmanship

Question 45

What is a Manuscript Policy?

Answer 45

policy written to cover a unique risk

Question 46

What is a Subscription Policy?

Answer 46

policy where more than one insurer provides coverage

Question 47

What does Burglary require?

Answer 47

Forcible entry

Question 48

What does the care, custody and control exclusion of the CGL policy not cover?

Answer 48

damage to property the insured is in the care, custody, and control of, see Tenant’s Legal Liability

Question 49

When does the Self-Insured Retention (liability deductible) come into play under an Umbrella Liability Policy?

Answer 49

when the policy covers something the underlying policy does not

Question 50

What is the territorial limit of the Umbrella Liability Policy?

Answer 50

worldwide