Chapter 5- Pecuinary Flashcards
What is pecuniary insurance concerned with
Intangibles such as income, revenue or value
What is the basis purposes of legal expenses insurance
To provide indemnity for costs arising out of the need to seek legal advise or to pursue or defend a civil action
What are the two standard policy covers
- Group legal benefit policies
2. Commercial legal protection policies
Under group legal benefit policies what is employment cover
Defence of any claim brought against a member in the course of their employment
Defence and compensation awards resulting from specified legislation
Costs of claiming for compensation arising out of members employment eg wrongful dismissal
Under group legal benefit policies what are the 4 sections of cover
- Employment cover
- Personal cover
4, motor cover
- Conveyancing cover
What are commercial legal protection policies
Designed to cover firms or companies in their capacity as employers, manufacturers; property owners etc
What are the 5 main sections of commercial legal protection policies
- Employment cover- defending an action by an employee against the firm
- Criminal prosecution defence cover- defences an action brought against the company usually under health and safe ty at work legislation
3 property disputes cover
- Motor cover
- Patents, registered designs, copyright and trademarks cover
What are the 4 optional extensions for commercial legal protection policies
- Defending libel and slander charges
- Involvement in public enquiries
3, investigations by professional bodies
- Taxation proceedings
What are the limitations for legal expenses cover
No cover where legal action is pursued against advice
What are the basic features of BI
The monetary amount that needs to be insured and the time the interruption will affect the business
What is the turnover in relation to BI
Turnover is the total income arising from the activities of the business
How is the turnover broken down in regards to BI
Costs are divided between those that vary in direct proportion of the turnover and those that not vary in this way
What two items may result in a loss to the insured under BI
Net profit and fixed charges
What terms do insureds use for the addition of net profit and standing charges
‘Gross profit’
What is the ‘difference basis of cover’ under BI
Works by deducting the uninsured working expenses (the variable charges) from the turnover.
What are the two basis of fixing sums insured under business interruption
1- taking the projected turnover for the forthcoming years and assuming a worst case scenario
2- declaration linked- declare figures for the forthcoming then a one third uplift is automatically taken into account
What is increase cost of working cover
Where certain expenses will increase following loss or damage
What is a material damage warranty
A policy covering the physical damage must be in place for BI to be covered
Why does material damage warranties not always apply to engineering business interruption
Insurer knows that there are fund for completing the rebuild
Insurer will obtain the benefit of the warranties that may apply to the material damage cover
What are the three most common business interruption policies
Fire and special perils
All risks
Engineering
What are the standard perils for a business interruption policy
Same as covers under a material damage policy but can be extended to include
The explosion of ANY boilers on the premises
What are the special perils for a business interruption policy
Relating to engineering cover:
Explosion and collapse of steam pipes
Explosion of vessels
Collapse or boilers
Overheating or tubes
Overheating of boilers
What are the extensions to an all risks business interruption policy
- Specified suppliers
- Unspecified suppliers
- Specified customers
- Transit
5, prevention or access s
6, public utilities
- Notifiable disease, vermin, defective sanitary arrangements
What are the two perils covered under an engineering BI Policy
Failure of the public supply of gas, electricity etc
Sudden and unforeseen damage from an accidental cause