Commercial Lines Flashcards
Newly acquired or constructed property
Coverage is for 30 days for a newly acquired buildings and personal property that are similar in use to the property insure. This extension will pay up to $250,000 for newly acquired buildings, and up to $100,000 for business personal property
Personal effects and property of others
Coverage is for up to $2,500 for personal effects of the insured or his employees (coverage does not apply to theft). This coverage also can be applied to personal property of others in the insurance care, custody, and control
Valuable papers and records
$2500 for the cost to research, replace, or restore lost information from valuable papers and records, other than electronic data
Property off premises
Up to $10,000 for property, excluding stock, but is temporarily at premises the insured does not own, lease, or operate. This coverage does not apply to personal property in a vehicle, or in possession of a sales person
Outdoor property
Up to $1000 for fences, and radio and television antennas, or $250 for trees, shrubs, and plants damaged or destroyed by fire, lightning, explosion, riot or civil commotion, or aircraft
Nonowned detached trailers
$5000 coverage applies only of the loss occurs when the trailer is in the insured’s custody and only if the insured is contractually obligated to pay for the loss or damage. The higher limit maybe shown in the declarations. This coverage is considered excess over other
Business Personal property temporarily in portable storage units
Coverage extends to business personal property wall temporarily stored in a portable storage unit located within 100 feet of the premises. The maximum amount amount of coverage is $10,000, and the coverage ends 90 days after the business personal property has been placed in the storage
Additional conditions
Abandonment Appraisal Duties in the even of a loss or damage Loss payment Recovered property Vacancy Valuation Coinsurance Mortgageholders
Abandonment
The insured cannot abandon property to the insurer
Appraisal
If the insurer and insured cannot agree on the value of property, both parties may make written demand for an appraisal of the loss.
Duties in the event of loss or damage
- Notify the police if a wall has been broken
- Give the ensure prompt notice of the loss, and a description of how, when, and where it occurred
- Take all reasonable steps to protect property from further damage
- At the insurers request, provide an inventory of both damaged and undamage to property
- Permit the insurer to inspect the property as often as necessary
- Send of the insurer a signed, sworn proof of loss within 60 days of its request
- Cooperate with the insurer and the investigation
Loss payment
In the event of a loss or damage, the insurance company has the option to do the following:
- Pay the value of the lost or damaged property
- Pay the cost of repairing or replacing the loss or damaged property
- Take all right or any part of the property at an agreed or appraised value
- Repair, rebuild, or replace the property
- The insurer must give notice of their intentions within 30 days after receiving the sworn proof of loss
Recovered property
If property is recovered after payment has been made, the insured has the option of keeping the property and returning the amount paid
Vacancy
If the building has been vacant for more than 60 consecutive days before the loss, the insurance will not pay for damage caused by vandalism, sprinkler leakage, glass breakage, water damage, theft, or attempted theft. If the losses caused by any other peril, the insurer will reduce the amount it otherwise would have paid by 15%
Mortgage holders
If the insured denies coverage because the insured failed to comply with the policy provisions, the mortgage holder may still be able to receive payment of the mortgage holder paid any premium due under the policy, submits the signed proof of loss within 60 days, and has notified the insurer of any changes in ownership and occupancy
Basic Commercial building and personal property form
- Fire
- Lightning
- Explosion
- Windstorm or hail
- Smoke
- Aircraft or vehicles
- Riot or civil commotion
- Vandalism
- Sprinkler leakage
- Sinkhole collapse
- Volcanic action
Commercial building and personal property form EXCLUSIONS
Ordinance or law Earth movement Governmental actions Nuclear hazards Utility services War and military actions Water Neglect Artificially generated electrical current Rupture or bursting of water pipes Leakage or discharge of water or steam Explosion of steam boilers Mechanical breakdown
Broad Commercial building and personal property form
11 causes of loss from basic (vandalism includes glass breakage) PLUS 1. Falling objects 2. Weight of snow, ice, or sleet 3. Water damage PLUS 1. Collapse 2. Breakage of glass
Earthquake cause of loss form
Adds 2 perils for coverage: earthquake and volcanic eruption
Business income
Covers the consequence of loss of business income that occurs when a business must suspend operations because of a direct loss.
The most the insurer will pay is 10% of the limit of insurance for business income, up to a maximum of $100,000 per location.
