Chapter 6: Insurance Products: Commercial Insurances Flashcards
What is standard fire cover in a property policy?
Covers PD from fire, lightning, or explosion
What special perils can be added to a property policy?
Explosion, aircraft, riot and civil commotion, malicious damage, earthquake, underground fire, storm and flood
Following the Riot Compensation Act 2016 and the Riot Compensation Regulations 2017, what can insurers recover from the police?
£1m per claim, no consequential losses, and claim has to be mde against the police in 42 days
Define ‘standard exclusions’
Certain causes of damage which are excluded. Include war risks, terrorism, pollution, cyber, etc
Define ‘all risks insurance’
Standard fire policy which includes accidental damage as well as the usual perils
What are the 4 types of exclusion associated with all risk property insurance?
Absolute exclusions, gradually operating exclusions, cover which can be written into the policy, risks more appropriate to other classes of business
How do insurers define theft?
Includes force and violence upon entry
What are common extensions to theft insurance?
Glass breakage, lock replacement, temporary removal, or ‘full theft’- removing the need for forcible entry
What are common exclusions to theft insurance?
Collusion, fire and explosion, cash, and livestock.
What does glass insurance normally exclude?
Chipping or scratching
What does money insurance insure?
Money, both in non-negotiable and negotiable forms
What can money insurance be extended to cover?
Personal accident/assault, or credit cards
What are the main exclusions in money insurance?
Errors and omissions, dishonesty of an employee, a safe being opened by a key
What does pecuniary insurance cover?
Direct financial loss
What does BI cover?
Actual or potential loss of earnings and additional expneses incurred as a result of material loss under a property insurance
How is it dceided what sum BI covers in the indeminty period?
By using gross profit
How do you calculate gross profit?
(turnover + closing stock) - (opening stock + uninsured working expenses)
Define ‘material damage proviso’
Material damage must occur before BI kicks in
What are common optional extensions for BI?
Specified suppliers, unspecified suppliers, specified customers, transit, prevention of access, notifiable disease/murder/suicide
Define ‘ICOW’
Increased cost of working
Define ‘negligence’
Doing something a reasonable or prudent person would not do, or not doing something a reasonable person would do. Negligence gives rise to liability.
What are common extensions to employers liability insurance?
Defence costs and expenses, additional persons insured, compensation for court attendance.
What is commonly excluded from punlic liability insurance?
Injury to employees, property belonging to the insured, product liability, contractual liability
What does product liability cover?
Consequential loss following actual damage, most commonly sold with general public liability insurance
