M93 - Chapter 7 Flashcards
Two types of All Risks Cover?
Property All Risks Cover (In Premises) - Covers buildings, contents and stock in premises for all contingencies, theft and accidental damage
Business All Risks Cover - Covers office machinery that needs specific cover, EG Vending machines, laptops and extends to out of office.
5 Causes an insurer will not cover? (There are lots more)
Trade risks Fraud Property in open (for weather) Consequential loss (Except rent) Property covered by other contingencies (money etc,)
Causes Insurers will cover after consideration?
Inventory shortages
Empty property, malicious damage & freezing pipes, escape of water etc.
Theft from the open
Causes that can be ‘bought back’
Fraud/dishonest employees
Unfixed sanitary wear and glass
Land, bridge and civil works
Crops & Trees
4 Territories that all risk can be covered in?
In premises
UK
Europe
Rest of world
Simple money definition
Negotiable and non-negotiable money belonging to the insured or that the insured is responsible for
Will claims be paid for money held by a security company?
Only if the insured is unable to recover it from the security company in the event of a loss
(Transit insurance) what is an ‘escort warranty’
A warranty stating the conditions in which money should be transferred EG Number of able-bodied persons
What is Free on board (FOB) condition
A terms that states the supplier is responsible to insure the items until they are onboarded onto the delivery vessel, at which point the customer needs to insure. As long as onboarded within 30 days of dispatch & within territorial limits.
What does Theft cover extend too
Buildings, stock and contents + the damage caused by thieves.
Limited to - The sum insured of the item, the total sum insured or a specific limit agreed.
Three theft extensions you might trip up on!
Collusion - Directors in on the game, can be considered for certain risks.
Secretion - Theft without forcible entry/exit (inside job)
Full cover - Still excludes collusion, higher excesses, more premium etc.
Difference between money and fidelity cover in respect to dishonest employees?
Money - Will excludes losses not discovered within a certain period (1 - 7 days)
Fidelity - Covers losses built over many years
What does fidelity cover headers include?
Stock
Machinery
Money
Work in progress
Fidelity cover - how long is the ‘discovery period’
24 months after end of policy
Typical exclusions of a fidelity policy
Consequential loss Unexplained stock shortage Loss of interest Loss of confidential information Losses outside geo limits
Fidelity extensions to pay for
Professional fees - Associated with investigating the loss
Labour costs to restore data stolen
Losses from fraudulent cheques/BACS (high excess)
4 types of fidelity policy
Individual person
Collective people, name and un-named (will list position)
Blanket
Position, based solely on the position, used in government
Policies will be on a aggregate (floating) basis
A ‘Crime’ policy covers and has a discovery period of?
Covers loss of damages where employees are involved with crime and EXTENDS cover for include Directors, contractors, solicitors etc.
Discovery period is only 15 days, 12 months for an additional 75% premium,
Exclusions insurers will allow buy backs
Subsidence Theft Fixed glass Fraud and dishonesty Crops and land
Standard money covers amounts in schedule
Cheques, bankers drafts and other non-negotiables - 250k On premises OOO (not if safe) £250 At employee home £500 Unspecified safe: 2.5k Bank night safe or business hours: 5k Any other loss: 5k
Maximum amount payable under theft for all property owned and responsible for
Limit stated for each item
Total sum insured or
Any other max, or limit stated on schedule
Money policies exclude theft by employees unless discovered within
1 to 7 days.
For cheque forgery and funds transfer/computer money theft, was it a typical excess?
£5000
