Commercial Insurance Flashcards
BPP
Business Personal Property
BPP Building Coverage
Property used to maintain the building and permanent fixtures such as air conditioners and fire extinguishing equipment located within 100 ft. of the insured building
BPP Debris Removal
limit of 25% of the amount of the loss minus the deductible.
Exceeds= $10,000 extra available
BPP Property Removal
all risk of perils basis for up to thirty (30) days
BPP Fire Department Service Charge
$1,000
BPP Pollutant Clean-Up Removal
maximum of $10,000 in any 12-month period. *Report by 180 days
BPP Increased Cost of Construction
pay the lesser of $10,000 or 5% of the policy limit
BPP Newly Acquired or Constructed Property Coverage
$250,000 for each building.
BPP Business Personal Property Coverage
limit of $100,000
BPP Period of Coverage
At the earliest of the policy’s expiration or thirty (30) days after the insured acquires or begins to construct the property
BPP Personal Effects Property and Property of Others
limit is $2,500 at each described premises
BPP Valuable Papers and Records
$2,500 at each described premises
BPP Property off Premises
$10,000 per loss.
BPP Outdoor Property
$1,000 but not more than $250 for any one tree
BPP Non-Owned Trailers
up to $5,000
BPP Business Personal Property Temporarily In Portable Storage Units
extend the insurance that applies to Business Personal Property (100ft)
(BPP) Basic Form
Named Perils policy
(BPP) Broad Form
Named Perils policy
BPP Special Form
(All Risk/Open Perils)
BPP Property in transit coverage amount
$1,000
Builder’s Risk Form: The Completed Value Basis
100% coinsurance because insurance carried must equal the completed value of the building under construction.
Builder’s Risk Form: The Reporting Value Basis
allows coverage to be carried according to the stage of completion of the building under construction.
Builders Risk: Debris Removal
25%
Builders Risk: pollution removal
$10,000
Builders Risk: losses to trees, shrubs, and plants
$250 for any one item with a maximum of $1,000 per occurrence.
Builders Risk: Building materials and supplies owned by others
$5,000 limit at each described location.
Business Income (interruption)
Payment of the normal net income that would have been earned, payroll (if it continues) and expenses required to continue normal operation (not expenses that are discontinued during the restoration period)
*72 hour waiting period
Business Income Extra Expense
Pay for the additional costs for continuing operations at a temporary location in order to avoid a loss of income at the insured location.
Extended Business Income
business resumes after a shut down due to a covered peril, the business income may not equal the income before the loss. This coverage pays the difference to the business for up to thirty (30) days after the resumption of business.
Loss of Business Income: Maximum Period of Indemnity
payable loss period to the 120 days immediately following the direct physical loss to covered property
Loss of Business Income: Monthly Limit of Indemnity
guarantees the most the insurer pays for loss of business income in each period of thirty (30) consecutive days following a loss is the limit of insurance multiplied by the percentage shown in the Declarations.
EXTRA EXPENSE COVERAGE FORM
business that must continue to operate even if a loss occurs despite the costs of keeping the business running
EXTRA EXPENSE COVERAGE FORM: Time
maximum of three (3) weeks and does not have a waiting period.
Extra Expense Coverage: Amount
$100,000 at each location
Extra Percentage availability 30 Days or less
40%
Extra Percentage availability 30-60 Days
80%
Extra Percentage availability 60+ Days
100%
B&M Suspension Provision
When an object is found to be in dangerous condition, this provision allows the insurer to suspend the insurance.
B&M Expediting Expenses Extension
agrees to make temporary repairs, expedite permanent repairs and/or expedite permanent replacement.
B&M Endorsements
B&M Form only covers direct losses to property. Endorsements may be added to cover indirect losses such as business income or extra expense coverage.
B&M Business Interruption
provides coverage to pay for losses due to business interruption.
B&M Extra Expense
provides payments to the covered business to keep the business open during the period of time required to restore the business to full operation.
CGL Occurrence Form
Covered loss DURING POLICY
Discover: Unlimited
CGL Claims Made Form
occurred during the policy period and reported during the policy period.
Basic Extended Reporting Period (BERP)
filed up to five (5) years after the end of the policy period as long as an occurrence is reported to the insurer no later than sixty (60) days after the end of the policy period.
Supplemental Extended Reporting Period (SERP)
Must be purchased within thirty (30) days after policy expiration.
*SERP has an unlimited duration and begins when the coverage provided by the Basic Extended Reporting Period (BERP) ends.
Garagekeepers Insurance
covers customers’ automobiles while in a garage’s care.
Garagekeepers Insurance: Legal Liability/Excess
customer’s vehicle damaged due to the insured’s negligence
Fellow servant rule
fellow employee contributed to the loss in any manner, the employer was not liable.
WORKERS’ COMPENSATION: Death Benefits (3)
-Burial allowance not to exceed $10,000
-Filed within 2 years of death
-The benefit is two-thirds 66 2/3 of the deceased worker’s wages and is subject to a minimum and maximum.
Total Permanent (disability)
loss of both hands, both feet, both arms, both legs, both eyes, and any combination of the two.
Temporary Total (disability)
Is the inability to work for a short period of time.
Temporary Partial (disability)
restriction of job duties or change of employment.
Permanent Part (disability)
employee has lost the use of or total loss of (in table)
Disability entitlements (2)
- 2/3 weekly pay
- Not over 500 weeks
Workers Comp NOT required (4)
(1) Farm workers;
(2) Casual (part time) employees;
(3) Domestic servants;
(4) Businesses with fewer than three (3) employees.
Commercial Inland Marine
Transport
Bailee’s Customers Insurance
coverage for legal liability resulting from damage or destruction of a customer’s property while temporarily under the care or custody of a bailee.
Contractor’s Equipment
covers property that includes Mobile equipment and Contractor’s equipment owned, rented or borrowed.
Builder’s Risk
provides coverage for all parties that have an insurable interest in the project including the owner, general contractor, and subcontractors.
Motor Truck Cargo (Owner’s Form)
liability insurance for truckers who carry the cargo of others and is used in the event that the transported cargo is destroyed, damaged, stolen or otherwise declared a loss while in the process of being shipped.
Installation Floater
loss of the material installed by that contractor.
Surety Bonds
serves as a guarantee of performance.
Fidelity Bonds
protects a business from dishonest acts by employees
CPP
Commercial & Liab
BOP
Small Business
BOP: Standard
Named perils (12)
BOP: Special
All perils
BOP Part A
Buildings *No Coinsurance
BOP Part B
Business Personal Property
BOP Part C
Loss of Income
Eligible Risk under BOP (6)
- Office building (under 6 stories or 100,000sqft)
- Apt building less than 6 stories/60 or less units
- Gross receipt less than 1 mil
- Restraints 7,500 sqft, seating cap 75
- Convenience store with gas
- Laundries and dry cleaners
Ineligible for BOP (5)
- Manufacturing
- Auto dealer/shop
- Financial Institutions
- Places of amusement
- Wholesalers
BOP Fire Dept Charges
$1,000
BOP Pollutant Clean Up
$10,000
BOP Personal Effects
$2,500
BOP Valuable Paper
$10,000 on/ $5,000 off premises
BOP liab limit
$300,000
BOP Med Pay limit
$5,000 per person
