Chapter 2 Flashcards
What is the definition of target stock?
Some goods are referred to as target stock and present a higher theft risk. They are relatively small in volume and high in value, not easily traceable with a ready secondhand or black market available. This usually includes wine, spirits cigarettes and tobacco but may also include items such as audiovisual equipment, jewellery and precious metals or stones
What is the typical cover level provided for target stock?
Typically cover is provided up to £1000 but these limits can usually be increased subject to an additional premium
What is the definition of capital additions?
This clause provides automatic cover for additions or alterations to the buildings, tenants improvements or general contents. A limit of 10% some insured subject to a maximum of £500,000 usually applies
What example would affect claim be rejected from an insurer?
If entry was gained without the use of force or violence either by using a key, by means of a trick, by hiding on the premises while they are open for business, by gaining entry into an unlock premises. The cover would be accepted if violent means we used to exit the property after
What are the cover limits for non-– negotiable money on a commercial policy?
Non-negotiable money (crossed checks, credit card and counterfoils etc) £250,000
What are the cover limits for money Claims on a commercial policy
During business hours, in a bank night safe or in transit £2500-£10,000
Out of business hours in a locked safe £1000-£2000
Out of business hours not in a lock safe £500
At the residence of the principal all that of an authorised employee £500
From a vending machine £300
The term money is defined in the policy and has a wide meaning what does this include?
Cash Bank and currency notes Cheques Postal and money orders Postage stamps National insurance cards Luncheon vouchers Travellers checks
The cover on a commercial policy for personal accident/assault includes what?
This cover provides monetary compensation to the principal or employees if they are assaulted by thieves. Provision is in the form of a lump sum of £10,000 in the event of death, loss of limbs or permanent total disablement. Our weekly benefit of £100 per week for a maximum of 104 weeks he’s paid in the event of temporary disablement
What is the age limit for personal accident/assault cover?
16 to 65 or 70 years applies
What are typical exclusions on a commercial policy?
Loss destruction or damage to any computer equipment
Wear and tear or gradual deterioration
Faulty or defective disc design materials or workmanship
Mechanical or electrical breakdown
Unexplained losses, fraud or dishonesty
Theft involving the principal, partners, directors, employees or household members
Escape of water, malicious damage when the premises are unoccupied
Changes in the water table and frost damage
Money losses due to clerical accountancy error
In regards to business interruption cover what is the maximum indemnity or restoration period that applies
12 to 36 months usually applies
In most cases there is a 48 to 72 hour waiting time before cover commences
What are some typical exclusions on a business interruption insurance
Broken items resulting from a covered event or loss
Flood or earthquake damage
Undocumented income that is not listed in a businesses financial records
Loss of the value of supply utilities
Communicable diseases
Employers liability insurance is compulsory bylaw therefore it is included a standard cover on a commercial package policy. What is the minimum level of cover for employers liability?
The usual limit of indemnity is £10 million however the minimum amount of cover which is compulsory is £5 million
What is the only standard exclusion to the employers liability cover
The only standard exclusion is offshore work. UK employers are not required to cover any employees who are based abroad
What is the definition of products liability?
This covers liability arising from goods sold or supplied which cause injury or damage to customers all their property
