Unit 11 Commercial Property Insurance

Question 1

Fire department service charge

Answer 1

Up to $1,000 no deductible applies.

Question 2

Newly acquired or constructed property

Answer 2

Covered for 30 days automatically & the coverage extension applies to Cov A & Cov B. Up to $250,000 for each new building may be extended to cover new buildings being constructed.

Question 3

Business income coverage form

Answer 3

Pays for loss of income that the insured sustains due to a direct physical loss from a peril insured against that forces the insured to suspend operations during the period of restoration.

Question 4

Business income includes:

Answer 4

Net income that would have been earned if the loss had not occurred and the costs of continuing normal operations, including payroll.

Question 5

Extra expense

Answer 5

Is a coverage that reimburses the insured for expenses incurred to keep a business going after a loss caused by a covered peril. This coverage is for business that must continue at all costs (newspaper or bank)

Question 6

The causes of loss

Answer 6

Basic form is a named perils form that lists 11 covered perils.
Fire, lightning, explosion, windstorm or hail, smoke, aircraft, riot, vandalism, sprinkler leakage, sinkhole collapse,
volcanic action -includes airborne volcanic blast or shockwaves, ash, dust, particulate matter and lava flow.