Chapter 19 - Business Property and Liability Insurance Flashcards
Commercial Property Insurance
Coverage for losses to real and personal business property. As commonly used, the term applies to policies that cover losses from most perils other than those that relate to crime, transportation, and equipment breakdown. Numerous forms cover various classifications of property from specified perils or on an open-perils basis.
Business Income Insurance
Insurance that covers business losses after the occurrence of a direct physical damage loss that results in the suspension of business operations. The Three basic types of losses covered include net income, normal ongoing business expenses, and extra expenses.
Extra Expense Insurance
Commercial insurance that provides coverage for expenses to avoid or minimize the suspension of operations following damage to property
Burglary
The removal of property from inside a premises by a person who enters or leaves the premises unlawfully as evidenced by marks of forcible entry or exit
Robbery
The removal of property from one person by someone else who has either caused harm or threatened to cause harm to the person. It also includes situations in which property is taken in an unlawful act that a person has witnessed.
Theft
A broad term that encompasses robbery, burglary, shoplifting, and any other act of stealing
Computer Fraud
The use of a computer to fraudulently transfer property from its rightful owner to someone else
Inland Marine Insurance
A specialized type of insurance used for goods in transit, property held by bailees, mobile equipment and property, property of certain dealers, and instrumentalities of transportation and communication
Difference in Conditions (DIC) Insurance
A separate insurance policy that provides open-perils coverage to fill in the gaps left by the insured’s other commercial property insurance policies
Commercial General Liability (CGL) Insurance
Commercial liability insurance designed to cover a wide variety of liability loss exposures that can face an organization, including premises, business operations, products, completed operations, contractual, and contingent liability.
Worker’s Compensation Insurance
Insurance under which the insurer agrees to pay all compensation required by workers’ compensation laws
Employers Liability Insurance
A type of liability Insurance that protects an employer when it can be sued because of injuries to employees. Usually accompanies workers’ compensation coverage.
Professional Liability Insurance
Insurance that protects against liability for the failure to use the degree of skill expected of a person in a particular occupation
Directors and Officers (D&O) Liability Insurance
Insurance that covers directors and officers of a corporation and that is purchased by a corporation. The policy covers directors and officers for their personal liability as directors and officers that results from wrongful acts, and it also covers reimbursement to the policyowner for any sum that it is required or permitted by law to pay to the directors and officers as indemnification
Employment Practices Liability Insurance
A liability policy that covers against specified employment practices, such as discrimination, sexual harassment, and wrongful termination
