50 Things You Need To Know About Commercial Insurance Flashcards
What three perils does the basic fire cover?
Explosion, lighting and fire.
How is the peril of lighting broadened in the named perils form?
Includes damage to appliances
How is the peril of explosion broadened in the names perils form?
Includes other types of explosions.
What perils does the broad form cover?
Is all risk subject to the policy conditions and exclusions.
What is professional liability insurance we use in our field as broker?
Errors and omissions.
What is included under the definition of building?
Buildings editions fixtures and fittings maintenance supplies and growing plants.
What is included under the definition of equipment?
Equipment content and tenants improvements
What is included under the definition of stock?
Stock, merchandise, and packaging, wrapping, and advertising materials.
What is the coverage amount based on For a builder’s risk
Completed value of the building
What are three exclusions under glass insurance?
Fire, war, nucular
What signs can be covered under a sign floater?
Exterior signs
What does the by-laws exclusion do?
Excludes additional costs to rebuild in compliance with the by-laws
What are two requirements that must be met before the farm building clause will pay the full amount of the Farm buildings?
Rebuilt within nine months and 200 feet from the original site
How many months worth of rental value endorsements should be insured?
12 months
What form would be used to cover stock? Where stock values are fairly consistent?
Is premium adjustment clause
What form would be best used to cover stock where sales very substantially from month to month?
Peak season Endorsement
What coverage does consequential loss consumption clause provide?
Covers loss due to failure of a Cold storage unit
What does gross earnings form cover in the Event to the loss?
Loss of earnings from the date of the loss to the date the business reopens
What does profit forms cover?
Loss of earnings from the date of the loss to the date profits return to what they were prior to the Loss
What do extra expenses cover?
Cost associated with Keeping business open at another location
What does the Contractors equipment floater cover?
Movable Equipment from site to site
What does The contractor’s equipment floater cover?
moveable equipment from site to site
What does a Tool Floater cover?
moveable tools from site to site
What does the Boiler and Machinery Policy cover?
explosion and rupture of boilers and breakdown of machinery
What does the term Floater mean?
a type of insurance that covers property that is easily moveable
What does the Supplementary Payments section of the CGL cover?
defense costs, post-judgement interest, and other litigation expenses
What is included in Theft?
Burglary and Robbery
Does Burglary and Robbery include Theft?
No
What does the 3D Policy cover?
employee dishonesty, disappearance, and destruction of property
Does the 3D Policy cover safe burglary and robbery on the premises?
Yes
What kind of losses does the Co-Insurance Clause concern itself with?
partial losses
Who are the three parties to a bond contract?
Principal, Surety, and Obligee
What do Fidelity Bonds cover?
dishonesty of employees
What does Products Liability cover?
Lawsuits resulting from goods that cause injury or damage to the purchaser like defective or dangerous products
What does Garage Liability pay for?
Garage Liability covers lawsuits resulting from the premises
What does Stated Amount Co-Insurance Clause base the amount of insurance required on?
appraisal of the property’s rebuilding cost
What is the Co-Insurance Clause formula?
did over (should x %) x loss
What are the criteria set out in the 2% Waiver of Co-Insurance?
loss must be less than $5,000 and less than 2% of the did
Why would Contingent Employers’ Liability be required?
when the employees are not covered by worker’s compensation
Why would Owners & Contractor’s Protective Liability be required?
protects against a lawsuit resulting from the negligent work of sub-contractors
Why would Blanket Contractual Liability be required?
when your business assumes the liability of others in a contract
What coverage does By-Law Endorsement provide?
it removes the exclusion and allows the insurer to pay the increased cost to rebuild made necessary due to by-laws
How does Stated Amount Co-Insurance Clause differ from the traditional Co-Insurance Clause?
based on appraisal and a specified value as opposed to percentage of rebuild
What does Completed Operations Liability cover?
liability arising from faulty workmanship
What is a Manuscript Policy?
policy written to cover a unique risk
What is a Subscription Policy?
policy where more than one insurer provides coverage
What does Burglary require?
Forcible entry
What does the care, custody and control exclusion of the CGL policy not cover?
damage to property the insured is in the care, custody, and control of, see Tenant’s Legal Liability
When does the Self-Insured Retention (liability deductible) come into play under an Umbrella
Liability Policy?
when the policy covers something the underlying policy does not
What is the territorial limit of the Umbrella Liability Policy?
worldwide
