Commercial Property Pt 2 Flashcards
Added coverages
If you’re a commercial business and need to have coverage for property in transit, what do you need?
Inland marine insurance
Who has an insurable interest when property is in transit?
Both owner and carrier
How is coverage for a portable item added?
By adding a floater
Who is a transportation floater for? What does it cover?
Used by owners that covers property in transit using own vehicle or Carrier
What does a trip Transit policy cover?
Insuring single shipments. You are an owner making a one-time trip
Who does the motor truck cargo Rider cover? What does it cover?
For carriers. Provides third-party coverage for damage to owner’s property so who
What are the three types of carriers?
- Private carrier- they haul their own Goods using owned or leased vehicles
- Contract carrier- hauls goods for people they have a contract with
- Public carrier- hauls Goods for the General Public
What does the transportation floater broad form all Risk insure?
- Your own Goods
- Goods delivered to clients that you are responsible for I.E good sold but not delivered
- business goods from supplier
What perils are excluded on the transportation floater broad form?
- Improper preparation, unexplained shortage or rough handling
- gradual deterioration
- Delay , loss of Market or vermin
What is the difference between the limited and broad from for the transportation floater?
Limited has no coverage for losses due to the hitching or unhitching of trailers loading or unloading or contacted any stationary object
Under a contractor’s insurance policy, Newly acquired equipment is automatically covered if:
- It is similar to covered equipment
- Covered up to 30 days then it must be added to policy
- Limited coverage
Name 3 common exclusions on the contractor’s policy
- Overload, wear and tear, break down- mechanical and electrical
- corrosion,
- temperature.
What does Builder’s risk AKA course of Construction insure?
The contract price plus additional values
additional values are debris removal, inflation, Consultants, temporary structures, legal fees
What are three components covered by Builder’s risk?
- Property owned by insured or others in course of construction, repair and installation
- Landscaping that are part of the project
- Temporary structures if values included only if necessary
Name three extensions available on Builder’s risk
- Property in transit
- Property at other locations example building materials awaiting pickup
- Debris removal including property that have stuff blown onto it
What is the limit of insurance on Builder’s risk?
Estimated completed construction cost including incidentals
Who is responsible for getting an installation floater
Subcontractor
What does an installation floater cover?
Property of insured plus the property of others that they are legally liable for incidental or to use in installation
What will an installation floater not cover?
Property on insured’s premise
Tools and equipment owned by insured or others
Faulty material, workmanship or design
( but remember the resultant fire or explosion is okay)
What does business Interruption insurance cover?
Lost income and expenses that are not covered in commercial property
What are 6 common causes of business interruption
- Physical damage to insured property, suppliers and customers, product quality for example a recall,
- cyberdata loss,
- Transportation disruption
4 Interruption of public utility, - physical damage to a neighbour,
- actions of regulatory Authority evacuation
What are the four types of business Interruption coverage?
- Gross earnings form
- Profit form
- Rental income endorsement
- Extra expense endorsement
What is the difference between the gross earnings form and the profit form under business Interruption coverage?
Gross= Indemnity. Equals from loss in till damage is fixed
Profit= Indemnity continues until income is restored period Stated on policy ie 12,18, 24 mo.
What does the extra expense endorsement on business Interruption coverage pay for?
Extra expenses needed to get the business up and running again. Prevents loss of reputations are customers. For example rent a space, overtime pay, equipment rentals
True or false
Business Interruption carries the same perils as your commercial policy
True.
True or false
the business Interruption coverage is the same indemnity peroid as your commercial property policy
False. It is separate from the commercial property insurance and can exceed this fiery date. Ends when property or income is restored