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
ocean marine
on water, on boat
jettison
voluntarily throwing cargo overboard to prevent the boat from sinking
bailees
property of others being held for business
installation floater
covers property purchased but now yet installed
motor truck cargo
covers cargo being transported
Equipment breakdown coverage
covers objects for accidents
- damage to boiler/machinery itself
- damage to other property of owner
- for damage to property of others in the care, custody, control
Equipment breakdown coverage limits (one deductible per accident)
expediting expenses: $25,000
Hazardous clean up: $25,000
Ammonia clean up $25,000
Water Damage $25,000
Equipment breakdown conditions
Inspection and loss control (insurer can inspect w/out notice)
Coverage can be suspended on an object in dangerous condition with immediate written notice
Coverage provided on RC but AVC can be endorsed
Farms are covered under a commercial package policy but
must be operated as a business
rates
use then file within 30 days
WAIP
Wisconsin Auto. Ins. Plan (prior approval)
WIP
Wisconsin Ins. Plan (prior approval)
WC
Workers Comp (prior approval)
forms
file and use
Domestic abuse & insurance
insurers cannot use a basis to cancel or deny coverage for individual, group or employer or to increase rates
WIP (Fair Plan)
non-profit, unincorporated plan - provides basic property insurance and risk sharing to WI residents who cannot secure property ins. in private market
