Commercial Insurance + Surety Flashcards
Commercial Lines insurance is also known as what
Business insurance
Small - to medium-sized enterprises package is good for what types of businesses
Retail stores, realty, office, and salons. It’s a pre-set package policy.
Package covers: stock & equipment against fire and extended coverage (EC) for all risks.
What categorizes into Commercial Building Forms in small-business package
Fixed structure pertaining to the building
additions and extensions
Permanent fixtures and fittings
Building maintenance supplies
Growing plants and trees inside the building
What categorizes into Equipment Forms in small-business package
Furniture fittings fixtures machinery tools utensils appliances
What categorizes into Stock Forms in small-business package
Merchandise
Packing & Wrapping
Advertising materials
What does COPE represent
Construction
Occupancy
Protection
Exposure
Underwriters are concerned with hazards, what are the inherent risks
Damageability, combustibility, and perishability of property
What is Commercial Property Floater
All-risk policy that includes theft insurance and covers property at specified premises of the insured, at newly acquired premises, and while in transit within Canada and the US.
What is Commercial Building Form
Essentially a combination of Commercial Property Floated with all-risks corresponding to insuring buildings
What is Office Equipment Floater
Good for “office only” risks, like: accountants, lawyers, real estate agents, and others.
All-risk form and covers a designated office but insures for limited amounts at other premises or while in transit.
Valuable Papers and Records covers:
The cost of reworking the information and reconstituting the records.
Accounts Receivable is good for
all-risks policy that will pay collection costs in excess of normal costs and pay interest on loans when collections are delayed.
Electronic Data Processing Equipment covers:
All-risk coverage on computers and associated equipment (hardware) and software.
Builders Risk covers:
Building during construction, materials at the job site and in transit.
Installation Floaters covers:
Machinery and equipment such as plumbing, heating, and electrical systems being installed in buildings under construction or during renovation.
Plumbing, electrician.
Special Retail Store Policies are good for:
Jewellers block
Furriers block (cover manufacturers, wholesalers and retailers
Laundries/drycleaners
Glass Insurance covers:
Glass breakage from any cause except fire, war, and nuclear damage
What are the two main approaches to income replacement insurance
Gross Earnings or Business Income
Profits or Extended Business Income
Gross Earnings Coverage is good for business who
Coverage ceases once repair of the property is completed. This form is most useful where customers will resume purchasing from the insured immediately upon reopening.
Profits or Extended Business Income
Good for when customers can or must find other suppliers when the insured is out of operation. This offers continued supplementary financial assistance until the business resumed its usual flow of business or after 1 year.
Contingent business interruption insurance covers
When a business is affected by a property loss at the premises of another business.
What are the two crime coverages available under a commercial crime insurance policy
Comprehensive Dishonesty, Disappearance, and Destruction (3-D) Policy, and cyber risk insurance
Commercial Crime Insurance Policy Declarations page includes the options between the following coverages:
Church Theft Damage to building by burglary or robbery Inside/outside robbery Lessees' safe-deposit box burglary and robbery Money and securities Office/store burglary and robbery Safe burglary Securities insurance Stock burglary
The 3-D policy form covers:
Employee dishonesty Loss inside the premises Loss outside the premises Money orders and counterfeit paper currency Depositor's forgery
Cyber Risk Insurance risks fall into three categories
Deliberate and unauthorized breaches of security
Unintentional or accidental security breaches
Operational IT risk
What are the 3 Construction Bonds
Bid bonds
Performance bonds
Labour and material payment bonds
What are the 3 Miscellaneous bonds
Fiduciary bonds
Customs or excise bonds
Licence and permit bonds
Who is involved in a Surety Contract
One party - surety
Second party - the principal
Third party - Obligee
Commercial General Liability is good because it covers almost all liability coverages. Which are..
Bodily & property damage
personal injury
medical payments
tenants legal liability.
What are the two coverages that can be added to CGM for additional cost
Umbrella, and excess coverage
Self-Insured Retentions are the same as
Deductibles
