Chapter 5 - Commercial Property Insurance - Miscellaneous Forms

Question 1

Three ways to insure legal and contractual responsibilities of Bailees for customer goods

Answer 1

1. add the value of the customer’s property to amount of insurance purchased for “stock”
2. purchase a separate policy to insure their legal liability for loss to customers’ property (e.g. Cloakroom Liability Policy / Warehousehousemen’s legal liability)
3. purchase a separate policy which pays even when bailee is negligent (pays even when bailee is not negligent)

Question 2

Inland transportation Insurance

Answer 2

Provides insurance against loss during transit. Parties having responsibility are owners and/or carriers

Question 3

Three types of carriers responsibility

Answer 3

Common Carrier
Contract Carrier
Private Carrier

Question 4

Define Bill of Lading and Bill of lading used by Common carrier

Answer 4

Bill of lading is used by common carriers to indicate liability for a specific shipment

Question 5

Standard (Ordinary) Bill of Lading

Answer 5

Liability based on kilo/pound, which may be less than the actual value of goods

Question 6

Valued Bill of Lading

Answer 6

Value as declared to the carrier by the owner or shipper. This type of liability increases owner’s responsibility , thus demands a higher transportation rate

Question 7

Released Bill of Lading

Answer 7

All liability removed from carrier, usually used when value of goods is minimal, or value of goods exceeds that provided by the standard tariff. Benefit of this is lower transportation rates and easy claim settlement

Question 8

Common Carrier

Answer 8

Provides transportation needs of public (airlines, railroads, moving companies)

Duty Owed Exception:
- Acts of God
- Public Enemies
- Public Authorities
- Inherent Vice
- Neglect or Default of Shipper

Question 9

Contract Carrier

Answer 9

Provides transportation services to certain customers for charge

Question 10

Private Carrier

Answer 10

Provides transportation for own goods (includes goods entrusted to bailees or lessees). Both carrier s and owners need insurance to cover their extent of

Question 11

Transportation Floater (Broad Form)

Answer 11

Covers owned goods and goods insured is responsible for, and goods sold but not delivered.

Perils excludes jewelry, furs, inadequate packaging, improper handling, inherent vices, infestations.

Provisional premium paid, refund or additional premium paid on expiry

Settlement is invoice cost, no invoice

Question 12

Transportation Floater (Limited Form)

Answer 12

Named perils form

Question 13

Motor Cargo Riders

Answer 13

Insures goods while transported by insured’s own vehicle

Question 14

Trip Transit Policy

Answer 14

Insures goods for single trip or all risks or named perils

Question 15

Truckman’s Liability Cargo Rider

Answer 15

Insurance for carriers either all risk or named perils. Main advantages of this form over private insurance company include:
1. prompt recovery of losses
2. broader Basis of Settlement
3. broader coverages
4. lower cost
5. no need to insure each shipment separately

Question 16

Tool Floater

Answer 16

Off premises coverage for tools (scheduled or blanket), 100% coinsurance requirement.

Exclusion:
1. loss or damage due to power surge
2. mysterious dissapperance (equipment left in construction site)

Question 17

Contractor’s Equipment Floater

Answer 17

insures all types of moveable equipment (scheduled or blanket) (owned, rented, leased). Option to add additional tools like welders or power tools.

Three automatic coverage for newly acquired equipment:
1. insures equipment similar to other equipment
2. coverage is provided for max 30 days from acquisition
3. Amount of insurance is limited

Question 18

Builder’s Risk Insurance

Answer 18

Standard form has no coverage for CoC (Broad or Named Perils Coverage). Can insure single or all projects. Form insures 3 types or categories of property:
1. All materials owned by insured or others
2. Landscaping costs including value of trees, plants
3. Temporary buildings: trailer, scaffolding, excavation work

Exclusion:
1. Contractors tools and equipment
2. Costs of making good, faulty material
3. flood or earthquake (available under endorsement)

Coverage ceases when left unattended for 30 days or when building is ready for use. Limit of insurance is on the completed value

Question 19

Jeweler’s Block & Furrier’s Block

Answer 19

For Jewellers and dealers who deal with furs

Question 20

Define Catastrophe Limit

Answer 20

The maximum amount insurer will pay for any one disaster

Question 21

Define Bailee for Hire

Answer 21

One who has temporary custody of personal property of others for purpose other than sale and for which they make a charge

Question 22

Released Bill of Lading

Answer 22

All liability for goods is removed from carrier. Used when value of goods exceed that provided by the standard tariff