Ains 21 common types of PL and CL Flashcards
Indemnitor
The party that will be held responsible for any loss.
Personal insurance policies: name the 4 types
1: property insurance
2: Liability insurance
3: life insurance
4: health insurance
Property Insurance
protects an insured’ sassiest by covering the cost of repairing or replacing property that is damaged, lost, or destroyed.
Liability Insurance
Provides payment on behalf of the insured for injury to others or damage to others
Property for which the insured is legally responsible. Also covered the cost to defend the insured agains claims or suits.
Life Insurance
Replaces the income-earning potential lost through death. Also pays expenses related to an insured’s death.
Heath Insurance
Protects individuals and families from financial losses caused by sickness and accidents. Disability insurance is a form of health insurance that replaces an insured’s income if the insured is unable to work due to illness or injury.
Homeowners policy
Covers most of the property and liability loss exposures that arise out of residential property ownership and occupancy, as well as property and liability loss exposures that individuals and families may have while they are away from their residences.
Protects an insured’s home and it contents for damage caused by fire, wind, and other causes of loss, most include coverage for the theft or destruction of the homes contents. In addition includes personal liability coverage for allegations of negligence.
Personal auto policy (PAP)
Covers an individual or family against loss exposures arising out of the ownership, maintenance, or use of automobiles. Covers liability losses occurring from bodily injury to another person or damage to the property of others that results from an auto accident. Covers from a collision, while Other Than Collision (also known as comprehensive coverage) coverage covers the vehicle for fire, theft, wind, contact with animals, and other causes of loss.
Watercraft policy
The personal liability coverage in the homeowners policy and the auto liability coverage in the PAP exclude or limit coverage for most watercraft and so may need a separate personal watercraft policy that covers both legal liability and physical damage.
Personal umbrella liability policies
Juries often award large sums of money in liability cases. This may require some insured’s to have higher limited of insurance than those available under personal liability or personal auto coverage, so personal umbrella liability policies provide an additional layer or liability coverage. Typical policy range is from 1 mil to 2 mil.
Life and Health Insurance
Main purpose of life insurance is to replace the income-earning potion all of a family’s primary wage earner who died. Also helps to pay for expenses related to the insured’s death.
Term Life Insurance
Lasts for a defined period of time and does not accrue cash value
Permanent life insurance
Offers lifetime protection and does accrue cash value over time
Commercial Package Policy (CPP) and Businessowners Policy (BOP)
Provides business owners with property, crime, and liability coverages. In the past, a business owner would have had to purchase several separate policies, rather than just one, to get all of the necessary coverages.
Commercial property insurance
Covers damage to buildings and/or contents resulting from fire, vandalism, and other causes of loss. Coverage is generally limited to property located on or near the insured’s premises.
Ocean Marine Insurance, or Wet Marine
Covers ships and their cargo against losses like fire, lightning, and “Perils of the sea”
Inland Marine or Dry Marine Insurance
Cargo transported by land. Covers mobile equipment and property used away from the insured premises by commercial enterprises. Protects goods in domestic transit and property used in transportation and communication as well as property used on job sites such as backhoes and other mobile equipment.
Commercial Crime Insurance
Protects the insured against theft of job-site, such as cash registers, computers, and inventory. Also insures money that might be stolen in a robbery during business hours or in a burglary that occurs while the business is closed, and can cover theft of employer property by employees.
Commercial General Liability (CGL)
Covers any of the common liability loss exposures faced by an organization, including its premises, operations, and products. Broad protection against claims alleging that the insured is legally liable for bodily injury or damage to the property of others.
Professional Liability Insurance
Covers professionals such as accountants, attorneys, or consultants fro harm resulting from errors or omissions arising out of their professional practices. Also covers doctors or professional trainers for injury to their customers or patients that results from their errors or omissions.
Environmental liability insurance
Offers business owners protection against environmental damage that may occur as a result of business operations. This type of coverage is desirable for business because CGL will not cover most pollution-related claims.
Commercial Umbrella Liability Coverage
Similar to personal umbrella coverage and provides additional limits beyond those provided by the CGL, commercial auto, and other policies and protects the insured in the event of a large liability loss.
Workers Compensation INsurance
Pays for the cost of medical care, lost wages, and other state-mandated benefits when employees are injured on the job or acquire a job-related illness such as asbestosis. These benefits are payable regardless of who caused the injury or illness and in return for this no-fault coverage, the employee generally loses the right to sue their employer.
