Commercial Package Policy Flashcards
Commercial Package Policy (common policy conditions)
commercial property business interruption commercial general liability inland marine equipment breakdown auto WC cannot be added
Common policy conditions (apply to all policies)
cancellation (cancels all) premium payment who can make changes/how they impact policy (1st named insured) Company's right to examine records company's right to survey & inspect
Commercial Package Policy Cause of Loss Forms
Basic (fire, EC, V&MM)
Broad (fire, EC, V&MM + breakage of glass, falling objects, weight of ice/snow/sleet, water)
Special (open, includes theft)
Covered property under Commercial package policy
building described in policy and includes (AVC)
- completed additions
- permanently installed fixtures, machinery, equipment
- outdoor fixtures
- personal property that the insured uses for maintaining and servicing the premises
- any additions under construction
- material/supplies on or within 100 ft
Covered business personal property under Commercial package policy
in or within 100 ft of premises includes (AVC)
- furniture/fixtures
- machinery/equipment
- stock (inventory for retail business: if sold = retail price but if not sold = wholesale price)
- other personal prop. owned and used in the business
- labor and materials in property of others (ex. dry cleaner)
- improvements/betterments
- leased personal property - if you are contractually required to insure it
Property not covered in Commercial package policy includes:
- money & securities
- animals
- land
- radio or TV antennas
- autos held for sale
- bridges/roadways
- fences
- detached signs
Extension of Coverage for Commercial package policy
- must carry 80% or more in co-insurance and meet requirement
- newly constructed/acquired building, up to 30 days = up to $250,000
- Personal property = up to $100,000
- Personal effects & property of others = $2500
- Valuable papers = $2500
- Personal prop. off premises = $10,000
- Outdoor prop. = $1,000 ($250 per tree, shrub, plant)
Additional Coverages for Commercial package policy
Debris removal
- up to 25% of loss (if total loss pay up to $25,000)
- pollutant cleanup $10,000 per policy period
- Preservation of property no limit and up to 30 days
- Fire Dept charge $1000
- Ordinance/law 5% of bldg. cvg / $10,000 whichever is less
- electronic data $2500
- signs $2500 (on & off premises)
Business interruptions is
indirect loss coverage. provides protection of business income and extra expense
business income
provides coverage for income lost because a business is out of operation
- covers during period of restoration (reasonable speed)
- prove you lost income
- net income +continuing operating expense (ins., utilities, lease, key employee salaries)
- extended business income period (60 days)
- form selection is basic, broad, or special
- civil authority, 4 weeks after a 72 hr deductible (due to a covered cause of loss to a neighboring property)
Business owners policy, available for 4 types of businesses (revenue no greater than $3 mil)
1) apartment
2) office
3) mercantile. (no alcohol or deep fryinh)
4) contractor
BOP available in
basic (standard) form all risk (special) form
BOP automatically includes
replacement cost building/contents
no coinsurance
business income & extra expense at actual loss sustained up to 12 months
commercial general liability - $1 mil per occurrence /$2 mil aggregate
Medical payments - $5000 per person (not at fault)
Endorsements on BOP
Protective safeguards - discount for burglar/fire alarm
Utility Services - Direct damage - utility disruption due to a covered peril (ex. lightning hits transformer which causes power outage and destroys food)
Utility Services - Time Element - if the Direct Damage caused business interruption or extra expense, this provides coverage for u up to 10 days
Inland ocean marine
on land or in air
