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Commercial Property > Commercial Property Coverage Forms and Endorsements > Flashcards

Commercial Property Coverage Forms and Endorsements Flashcards

1
Q

Covered Property

A

Building, Your Business Personal Property, Personal Property of Others

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2
Q

Building

A

Structure, Completed additions, Fixtures (including outdoor), permanently installed machinery & equipment, Personal property
used to service the building

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3
Q

Building (If not covered by other insurance)

A

additions under construction, building materials, supplies & temporary structures

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4
Q

Endorsements to modify definition of building

A
  1. Additional Building Property
  2. Additional Property Not Covered
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5
Q

Additional Building Property Endorsement

A

This endorsement will allow the building rate to apply to all property scheduled under this endorsement.

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6
Q

Additional Property Not Covered Endorsement

A

This endorsement is used to add specific types of property to the list of “Property Not Covered”

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7
Q

Business Personal Property

A

Furniture/Fixtures, Machinery/Equipment, Stock, personal property owned by you & used in business, labor/materials/services furnished on property of others, leased property w contractual obligation to insured, tenant improvements/betterments

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8
Q

Stock Definition

A

merchandise held in storage/for sale, raw materials, in-process/finished goods, supplies used in packing/shipping

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9
Q

Business Personal Property Endorsements

A

1.Additional Property Not Covered
2. Leased Property
3.Your Business Personal Property – Separation Of Coverage

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10
Q

Additional Property Not Covered Endorsement

A

can add “stock” to the Property Not Covered

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11
Q

Leased Property Endorsement

A

insure business personal property leased to the
Named Insured as Your Business Personal Property instead of categorizing it as Personal Property of Others.

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12
Q

Your Business Personal Property – Separation Of Coverage Endorsement

A

separate out and specify a Limit of Insurance for any of the
seven categories of Your Business Personal Property

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13
Q

Personal Property of Others

A

property entrusted to the named insured to work on/on consignment/sold but not delivered/leased to named insured

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14
Q

Property Not Covered

A

currency, animals, autos held for sale, bridges/roadways, contraband, excavations, land, underground pipes, electronic data

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15
Q

Property Not Covered Endorsements

A

Additional Covered Property

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16
Q

Additional Covered Property Endorsement

A

expands the definition of Covered Property and can be used to
buy back coverage for certain property that is included in Property Not Covered.

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17
Q

Primary Options for Writing Commercial Property

A
  1. Specific
  2. Scheduled
  3. Blanket
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18
Q

Specific Coverage

A

Specific Coverage applies a specific limit to a building or personal property at a single location.

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19
Q

Scheduled Coverage

A

separate limits of insurance applied to two or more individually listed
properties

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20
Q

Blanket Coverage

A

limit includes the value of all reported properties. This total limit is available to pay losses regardless of which property or location has suffered the loss

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21
Q

Advantages of Blanket Coverage

A

-apply insurance where needed
-handles fluctuating values between locations
-reporting forms are easier to handle

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22
Q
A
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23
Q

Changing/Fluctuating Values Endorsements

A
  1. Limitation on Loss Settlement-Blanket Insurance
  2. Peak Season
  3. Value Reporting Form
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24
Q

Limitation on Loss Settlement-Blanket Insurance

A

limits the maximum amount payable for any item to the percentage shown in the Schedule multiplied by the value reported on the last Statement of Values

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25
Peak Season
increase coverage for a specified number of days to reflect predictable (planned or expected), seasonal increases in business personal property insurance
26
Value Reporting
designed for Named Insureds with fluctuating business personal property values or changing locations. It provides a means to accurately measure changing values of business personal property in order to provide adequate coverage and charge the appropriate premium
27
Eligible Property for Value Reporting
1. Business Personal Property of Named Insured 2. Personal Property of Others 3. Stock only
28
Reporting Types
1. New Policy 2. Renewal Policy 3. Subsequent Reports
29
New Policy Provision
First report is due 60 days after the end of the reporting period, second report is due concurrent w first daily, weekly or monthly reporting forms
30
Renewal Policy Provisions
first report is due 30 days after the end of the first reporting period
31
Subsequent Report Provisions
must be filed within 30 days of the end of each reporting period
32
All Report Provisions
1. Correct Reporting 2. Full Reporting 3. Reports in Excess of the Limit of Insurance 4. Failure to Submit Reports 5.Subsequent Reports LateCo
33
Coinsurance
rating and underwriting concept that is designed to encourage an insured to purchase an amount of insurance equal to the full value of the property being insured
34
Building & Personal Property Coverage Form
1. Debris Removal 2. Preservation of Property 3. Fire Department Service Charge 4. Pollutant Clean Up and Removal 5. Increased Cost of Construction 6. Electronic Data
35
Preservation of Property
covers any direct physical loss or damage to Covered Property that is moved from the described premises to preserve it from loss or damage from a Covered Cause of Loss
36
Preservation of Property Pays
* while it is in transit or while in temporary storage at another location, and * within 30 days after the property is first moved
37
Pollutant Clean-up And Removal
covers the cost of extracting pollutants from the described premises—it does not cover the cost of testing for, monitoring, or assessing the effects of levels of pollutants.
38
Increased Cost of Construction Additional Coverage
pays for increased costs incurred to comply with the minimum standards of an ordinance or law in the course of repair, rebuilding, or replacement of damaged parts. applied only to replacement cost buildings.
39
Electronic Data Additional Coverage
pays for the cost of replacing or restoring electronic data that has been destroyed or corrupted due to a Covered Cause of Loss
40
BOP Coverage Extenstions
1. Newly Acquired or Constructed Property 2.Personal Effects and Property of Others 3.Valuable Papers and Records (Other than Electronic Data) 4. Property Off-Premises 5. Outdoor Property 6. Non-owned Detached Trailers 7. Business Personal Property Temporarily in Portable Storage Units
41
3 Parts of Newly Acquired/Constructed Property
1. Buildings 2. Your Business Personal Property 3. Period of Coverage
42
Newly Acquired/Constructed Building
coverage can be extended to new buildings while being constructed on the described premises. Buildings the Named Insured acquires at other locations must be intended for similar use as the building described in the Declarations or as a warehouse for coverage to apply.
43
Newly Acquired/Constructed Building Limits
will not pay more than $250,000 for loss/damage at each building
44
Newly Acquired/Constructed Your Business Personal Property
coverage may be extended to include business personal property (including that which has been newly acquired) at newly acquired locations. Note that this coverage does not apply at fairs, trade shows, or exhibitions.
45
Newly Acquired/Constructed Your Business Personal Property Limits
$100,000
46
Newly Acquired/Constructed Period of Coverage
automatic coverage is limited to the following: * policy expiration, * 30 days after the acquisition or start of construction, or * the Named Insured reports values to the insurer
47
Personal Effects And Property Of Others
coverage to personal effects owned by the Named Insured and others involved in the business such as officers, partners, and employees. Note that there is no theft coverage for personal effects. It also extends coverage to the personal property of others that is in the Named Insured’s care, custody, or control.
48
Valuable Papers And Records
extend Your Business Personal Property coverage to include the cost of replacing or restoring lost information on valuable papers when duplicates do not exist. Note that this cove
49
Valuable Papers & Records Limit
$2,500 at each described premises
50
Property Off-Premises
coverage to the Named Insured’s Covered Property while it is away from the described premises if it is: * temporarily at a location that is not owned, leased, or operated by the Named Insured, * in storage at a leased location, only if the lease was executed after the start of the current policy term, or * at any fair, trade show, or exhibition.
51
Property Off-Premises Limit
$10,000
52
Outdoor Property
applies to your outdoor fences, radio/tv antennas, trees/shurbs/plants
53
Outdoor Property Perils
Fire Lightning Aircraft Riot Explosion
54
Non-owned Detached Trailers
coverage to loss or damage to non-owned trailers if: * the trailer is used in the Named Insured’s business, * the trailer is in the care, custody, or control of the Named Insured at the described premises, and * the Named Insured has a contractual responsibility to pay for loss or damage to the trailer.
55
Non-Owned Detached Trailer Exclusions
loss or damage that occurs: * while the trailer is attached to any motorized vehicle or conveyance, or * during hitching or unhitching operations or if the trailer becomes accidentally unhitched.
56
Non-Owned Detached Trailer Limits
$5,000 unless a higher limit is shown in the Declarations
57
Business Personal Property Temp in Portable Storage Units
Property that is being temporarily stored in a portable storage unit, including a detached trailer, that is located within 100 feet of the building or structure or within 100 feet of the described premises— whichever is greater
58
BOP Loss Conditions
1. Adandonment 2. Appraisal 3. Duties in the event of loss/damage 4. Loss Payment 5. Recovered Property 6. Vacancy 7. Valuation
59
Vacancy
The building is vacant unless at least 31% of the total square footage is: Ӳ rented to a lessee or sub-lessee and used by the renter to conduct customary operations, and/or Ӳ used by the building owner to conduct customary operations.
60
BOP Optional Coverages
1. Agreed Value 2. Inflation Guard 3. Replacement Cost 4. Extension of Replacement Cost to Personal Property of Others
61
Causes of Loss Forms
1. Basic 2. Broad 3. Special
62
Basic Causes of Loss
Fire Lightning Explosion Wind/Hail Smoke Aircraft/Vehicles Riot/Civil Commotion Vandalism Sprinkler Leakage Sinkhole Collapse Volcanic Action
63
Broad Causes of Loss
All Basic Form Perils Falling Objects Weight of Snow/Sleet/Ice Water Damage
64
Special Causes of Loss
Open Peril
65
Special Form Exclusion Types
1. Concurrent Causation/Sequential Causation (Group 1) 2. Concurrent Causation (Group 2) 3. Conditional Exclusions 4. Special Exclusions 5. Additional Exclusions
66
Concurrent Causation/Sequential Causation (Group 1) Exclusions
1. Ordinance/Law 2. Earth Movement 3. Governmental Action 4. Nuclear Hazard 5. Utility Services 6. War/Military Action 7. Water 8. Fungus, Wet Rot, Dry Rot, Bacteria
67
Concurrent Causation (Group 2) Exclusions
1. Artifically generated electrical, magnetic, or electromagnetic energy 2. delay, loss of use/market 3. smoke, vapor, gas from agricultural smuding/industrial operations 4. typical open perils exclusions 5. explosion of steam apparatus 6. seepage/leakage of water 7. freezing of plumbing 8.dishonest/criminal acts by specific individuals 9. voluntary parting 10. rain, snow, sleet, ice-personal property in open 11. collapse 12. damage caused by pollutants 13. neglect to save/preserve property
68
Typical Open Perils Exclusion
1. wear & tear 2. rust/corrosion, decay, deterioration, hidden/latent defect 3. smog 4. settling, cracking, shrinking or expansion 5. nesting/infestation or discharge/release of waste products by insects, birds, rodents or other animals 6. mechanical breakdown
69
Conditional Exclusion Definition
court decisions applying concurrent causation theories where losses from potentially multiple causes of loss have been provided coverage if the predominant cause of loss was not specifically excluded.
70
Conditional Exclusions
1. Weather Conditions 2. Acts/Decisions 3. Faulty, Inadequate, Defective
71
Special Exclusion Applies to
Legal Liability Coverage Form
72
Special Exclusions
1. Contractual Liability 2. Nuclear Hazard
73
Additional Exclusion
no coverage for loss or damage when errors or omissions in any stage of the production process (planning, installation, repair, etc.) result in goods that have little or no value or that must be destroyed
74
Business Income Loss-Financial Elements
1. Gross Revenue 2. Operating Expenses 3. Net Income (Profit or Loss)
74
Special Form-Additional Coverages/Extensions
1. Collapse (coverage) 2. Limited Coverage for Fungus, Wet Rot, Dry Rot, Bacteria (coverage) 3. Property in Transit (extenstion) 4. Water Damage, Other Liquids, Powder or Molten Material Damage (extension) 5. Glass (extension)
74
Time Element Coverage Forms
1. Business Income & Extra Expense 2. Business Income Without Extra Expense 3. Extra Expense 4. Leasehold Interest
74
Other Methods of Providing Business Income Coverage
1. Builder's Risk 2. BOP 3. Business Auto Policies 4. Contractor's Equipment Policies 5. Cyber Insurance Policies 6. Equipment Breakdown Policies 7. Electronic Data Processing Policies 8. Difference in Conditions Policies
75
Business Income Definition
net income that would have been earned/incurred and continuing operating expenses incurred
76
Period of Restoration
Business Income: 72 hours after time of direct physical loss Extra Income: immediately after direct physical loss Ends: ends on the date property should be repaired/rebuilt/replaced or when insured's operations resume at new location
77
Dependent Properties Exposure
potential loss exposure if the premises belonging to another business that the Named Insured is dependent on suffers damage
78
Dependent Property Types
1. Contributing Locations 2. Recipient Locations 3. Manufacturing Locations 4. Lender Locations
79
Contributing Property
another business that provides goods/services to insured who relies on this business for raw materials
80
Recipient Property
another business that purchases insured's goods/services and insured relies on this business for sales
81
Manufacturing Property
another business that makes a product for insured and provides it directly to the insureds customers
82
Lender Property
another business that attracts customers to the insured's business
83
Business Income Optional Coverages
1. Maximum Period of Indemnity 2. Monthly Limit of Indemnity 3. Business Income Agreed Value 4. Extended Period of Indemnity
84
Business Income Additional Coverages
1. Civil Authority 2. Alterations/New Buildings 3. Extended Business Income 4. Interruption of Computer Operations

Commercial Property (1 decks)

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