Chapter 6 Flashcards
What is commercial motor insurance?
Goods carrying vehicles, agricultural/forestry, passenger carrying and special types
Excludes driving other cars, personal accident and benefit
What is covered under commercial property insurance?
- Fire and special perils
- All risks
- Theft
- Glass
- Money
What is covered under property - fire and special perils?
Standard fire cover - fire (excluding explosion, earthquake), lightening and explosion (boiler/gas domestic purposes)
Special perils that. can be added include explosion, aircraft, riot and civil commission, malicious damage, earthquake, storm and flood, escape of water, sprinkler leakage, subsidence ground heave and landslip
What are the standard exclusions under property - fire and special perils?
War, radioactive contamination, terrorism, NI, pollution, marine, more specifically insured, sonic bangs and cyber risks
What is covered under property - all risks?
Everything not specifically excluded - all loss, damage or destruction of property insured is recoverable asa long as insured accidentally by insured
What is excluded under property - all risks?
- Absolute: war, pollution, contamination, consequential loss
- Gradually operating: corrosion/rust and wind/rain
- Aspects of cover that can be written into the policy eg money or glass
- More appropriate to another class
What is covered under property - theft?
Includes force and violence breaking in or our - removes cover for entry by key, trick or concealment
Extensions: breakage of glass, replacement locks, temp removal and full theft (no force or violence)
What is excluded under property - theft?
Collusion, fire, cash, livestock
Priced using estimated maximum loss
What is covered under property - glass?
Destruction or damage to all fixed glass including windows, doors, mirrored glass - extension to board up until glass replaced
All risks but stretching and chipping excluded
What is covered under property - money?
Negotiability of money (ease turn into cash), difficult will have high limit
Depends on locality and time eg in safe or transit, business hour
Extension - personal accident, credit card
Exclusions - dishonesty employee not discovered 7 days, safe opened by key
What is pecuniary insurance?
Involves direct financial loss
- Business interruption
- Legal expenses
What is covered under BI insurance?
Actual or potential loss of earning and additional expenses incurred as result of material loss covered under property
Estimate max time income/business affected = indemnity period
Sum insured representing gross profit
How do you calculate gross profit for BI insurance?
= (turnover + closing stock) - (opening stock + uninsured working expenses)
What is covered under legal expenses?
Firms or companies costs arising from need to take action in courts or defend and ocrs of insured/employees time spent in court
What is liability insurance?
Liable pay damages to another who suffers loss or damage arising from negligence
- EL
- Public liability
- Product liability
- Pollution liability
- Professional indemnity
- Directors and officers
- Errors and omissions
- Medical malpractice
What is EL insurance?
Compulsory - covers boldly insure or disease sustained by employees in course of employment
Min limit £5m
What is public liability insurance?
Legal liability to third parties for damages for bodily injury, death, disease, illness or loss/damage to property
What is product liability insurance?
Consequential loss following actual injury or damage
Financial loss not covered unless accompanied by body injury / damage loss property
What is pollution liability?
Pollution or contamination caused by sudden identifiable, unintended and unexpected incident which takes place in entire at specific moment in time and place during period of insurance
What is professional indemnity insurance?
Injury, damage or financial loss to client or public as result of breach of professional duty, negligence, errors or omissions
What is errors and omissions insurance?
Specialist form of PI, claims occur where broker has made a mistake
What is cyber insurance?
Relatively new
First or third party, level of cover varies and depends on level of protection adopted by proposer
