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unit19 Flashcards

1
Q

what’s included in a business owners policy

A

property, liability, and other coverages

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2
Q

BOP requirements

A

• Less than 100 employees
• revenues of $6 million or less
• businesses occupying up to 35,000 sq ft
• owned buildings up to 100,000 sq ft and less than six stories
5. a majority of the operation is located on-premises

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3
Q

BOP includes what two major coverages

A

Coverage A- buildings

B- business personal property

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4
Q

limit of insurance is shown where

A

declarations

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5
Q

Building Coverage

A
  1. completed additions -permanently installed machinery and equipment
  2. Fixtures
  3. Personal property used to maintain or service buildings
  4. Additions
  5. Alterations
  6. Materials - on or pithing 100ft of the premises
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6
Q

five different classes of business personal property covered

A
  1. property owned and used by the insured in the business
  2. property of others in the insured’s care
  3. tenants improvements
  4. leased personal property
  5. exterior building glass
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7
Q

exterior building glass is covered for who

A

tenants who don’t have building coverage

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8
Q

property coverage in the BOP is provided on a what peril basis

A

open peril

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9
Q

for coverage provided on a named peril bases what can be added

A

an endorsement

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10
Q

amount reimbursed for debris removal

A

25% or the amount paid for the direct physical loss plus the deductible

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11
Q

total payment for loss and debris removal

A

25,000

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12
Q

when is collapse of a building covered?

A
  1. building glass breakage
  2. hidden decay
  3. hidden insect damage
  4. weight of people or personal property
  5. weight of rain of snow

this coverage is subject to the limits of insurance. it does not provide an additional amount of insurance

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13
Q

loss of business income additional coverage

A

is not subject to the limits of insurance

payment within 12 consecutive months after the date of the direct physical damage

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14
Q

extra expense coverage

A

allow reimbursement for additional cost incurred to avoid or minimize suspending business operations after a covered loss

this coverage is in addition to the insured’s limits of insurance

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15
Q

increased cost of construction additional coverage applies to what?

what is the coverage limit?

A

buildings insured on a replacement cost basis

10,000

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16
Q

civil authority additional coverage

when does coverage begin?

how long does it last for?

A

covered when civil authorities denies the insured access to the described premises because property not a the described premises was damaged

coverage beings 72hours after the action by the civil authority and if effective for up to four consecutive weeks

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17
Q

forgery and alteration additional coverage total payment

A

2,500 payment for a loss including legal expenses

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18
Q

what is a dependent property

A

A business that delivers, accepts, manufactures or attracts materials or services to or by the insured

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19
Q

what is the coverage limit for the business income from dependent properties coverage

when coverage begins

A

5,000 unless stated higher in declarations

72hours after - repaired

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20
Q

coverage limit for electronic data?

what is electronic data

A

10,000

facts, info, programs

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21
Q

fungi, wet/dry rot and bacteria coverage limit

A

15,000 within 12 months

must occur during the policy period

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22
Q

money orders and counterfeit money limit

A

1,000

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23
Q

pollutant clean up and removal

A

does what the debris removal doesn’t do

limit 10,000 for each 12-month policy

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24
Q

preservation or property

A

covers while temporarily stored to another location for 30 days from the day the property was first moved

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25
fire department service charges
standard limit 2,500
26
water or other liquid
does not include flood
27
glass expenses
put up temp plates or board if repair is delayed
28
fire extinguisher systems recharge expense
if discharged on or within 100ft accidental 5,000 per occurrence
29
loss caused by a power failure that occurs on the insured's premises is covered by what policy
business owners Not Covered: underground water seepage equipment breakdown city ordinance tears down building
30
newly acquired or constructed coverage extension
covers new property Buildings for 250,000 each | 30 days
31
business personal property limit time frame
extended to newly acquired or constructed buildings. for personal property 100,000 at each location for 30 days after acquisition or construction has begun good until policy expires or until values are reported
32
coverage extension to property exclusion limit
money, securities, valuable papers, records, accounts 10,000
33
extended to outdoor property limit
2,500 1,000/tree
34
business personal property coverage extended to personal effects owned by the insured's officers, partners, or employees limit
2,500 at each insured premises
35
valuable paper and records coverage extension limit
10,000
36
optional coverages have to be what and require what
designated in the declarations and require an additional premium
37
employee dishonesty covered period
discovered within one year from the end of the policy period a.k.a. discovery period
38
definition of object
1. certain boiler and pressure vessels | 2. certain types of air-conditioning units
39
limit of insurance is specified where
declarations
40
money and securities insured's as a result of has to located where
theft, disappearance, or destruction bank, described premises, in transit between any of these places
41
standard deductible for property losses
500
42
deductible applies to what
mandatory and optional building and business personal property coverages. not to the fire department, extra expense, business income, civil authority, or fire extinguisher
43
advertising injury
hurt feelings
44
requirements to cover injuries and offenses
must take place in the coverage territory and occur during the policy period
45
liability coverage when does it end
1. bodily injury 2. property damage 3. personal injury 4. advertising injury duty to defend ends when policy limits have been paid
46
supplementary payments
1. expenses the insurance company incurs 2. up to 250 in bail bond 3. reasonable expense including 250/day 4. cost the insured is required to pay because of a lawsuit 5. prejudgment interest the insured is required to pay 6. interest that accuses after a judgment and before it is paid do not reduce the policy limit
47
medical expenses coverage covers
1. first aid when an accident occurs 2. medical services 3. funeral services without regard who is at fault will pay within one year of the date of accident
48
medical expenses generally not be paid for if
insured, employee, can get workers comp, or normally occupies space where injured
49
business liability coverage
1. false arrest 2. malicious prosecution 3. wrongful eviction 4. wrongful entry 5. invasion 6. oral or written slander 7. use of another's advertising idea 8. infringement of copyright
50
medical expenses will pay reasonable expenses for first aid, medical services, and funeral services within what time frame?
1 year of the date of the accident
51
who is insured under the individual designation under the business owners policy
named insured + spouse
52
who is insured under the partnership designation under the business owners policy
named insured + named insured's partners and their spouses
53
who is insured under the limited liability company designation under the business owners policy
named insured members managers
54
who is insured under the corporation designation under the business owners policy
named insured | executive offices and directors
55
other considered insureds under the business owners policy
employee or the named insured and if named insured dies the legal representative
56
where are insurance limits documented
in the policy's declarations
57
liability and medical expenses covers:
total of all damages that arise out or 1. bodily injury 2. property damage 3. medical expenses 4. personal injury 5. advertising injury to one person or organization
58
what two aggregates are two times the limit shown in the declarations
1. injury or damage under the products-completed operations hazard 2. all other injury, damage, or medical expenses except fire legal liability losses
59
what are common policy conditions
conditions that apply to the entire policy
60
what are the two sets of conditions for the property. coverage
1. property general conditions | 2. property loss conditions
61
what are liability conditions called
liability and medical expenses general conditions
62
what is the utility services - direct damage coverage endorsement
covers loss or damage to property caused by an interruption in water, be communication, or power supply service property must scheduled for coverage on the endorsement and the service
63
what does the utility services - time element coverage endorsement cover
pays for loss of business income or extra expenses if damage is outside the covered building
64
what is the protective safeguards endorsement
requires insured to maintain protective devices or services listed on the endorsement as a condition of the policy otherwise: payment not made by insurers if fire damage or burglary e losses occur or insurer wasn't notifies within 48hrs of device not working
65
hired auto and non owned auto liability endorsement available when
the insured business doesn't have commercial auto insurance
66
there are two sets of conditions that apply to every policy for property coverage. what are they
1. property general conditions | 2. the property loss conditions
67
in addition to max floor space of 35,000, the business owners eligibility rules limit eligible risks to max of
6 million in annual sales
68
the largest building risk that may be eligible for a business owners policy is
6 stories and 100,000 sq ft
69
what is covered in Coverage B - business personal property
1. exterior building glass, 2. tenant improvements (permanently installed), 3. personal leases property accounts receivable and Land is excluded
70
limit of coverage for valuable papers and records
10,000
71
medical payments of BOP does not cover what
medical expenses arising out of automobile accidents
72
BOP provides liability protection for
damages because of bodily injury, property damage, personal injury or advertising injury
73
fire dept. limit
2,500
74
limit for cost of construction
10,000
75
business owners liability coverage includes what
personal and advertising injury
76
mechanical breakdown is covered if what
adds this as an optional coverage and usually requires an additional premium
77
tree and detached signs are what kind of coverage
extension not an additional coverage
78
business income pays for what
loss of business revenues if it has been caused by a covered loss.
79
BOP additional coverages - automatically included
1. debris removal 25%, 25,000 total 2. collapse 3. loss of business income 4. extra expense 5. increased cost of construction 6. action of civil authority 7. forgery or alteration 2,500 8. business income from dependent properties 5,000 9. electronic data 10,000 10. fungi, wet rot, dry rot, and bacteria 15,000/policy 11. money orders counterfeit money 1,000 12. pollutant cleanup 10,000/policy 13. preservation or property 30 days 14. fire department service charge 2,500 15. water or other liquid 16. glass 17. fire extinguisher 5,000/occurrence
80
coverage extensions
1. newly acquired - buildings 30 days, 250,000 -personal property 30 days, 100,000 2. trees and detached signs -max 2,500 -max/tree 1,000 3. personal pro of others-2,500 4. valuable papers and records 10,000 NTPV
81
optional coverages - additional premium
1. employee dishonesty 2. mechanical breakdown 3. outdoor signs 4. money and securities ENOM
82
optional coverages - standard deductible
base deductible applies to all building and personal property
83
limit for valuable papers at prescribed premises limit for valuable papers not at prescribed premises
10,000 5,000
84
BOP coverage B personal property excludes what
customers property
85
property coverage in the unendorsed BOP is provided on what type of basis
open perils (special form)
86
bodily injury coverage applies if
the owner is negligent
87
the liability section of the BOP excludes coverage for what
employer's liability because it's better covered by worker's compensation
88
limit on loss of earnings
250/day
89
medical expenses vs medical payments and personal injury
medical expenses- accident | (medical payments and personal injury)- negligence
90
the standard deductible for the business owners policy applies to what? how much is it?
civil commotion. standard deductible for the BOP is $500
91
a base deductible applies to what
all the building and business personal property coverages including mandatory and optional coverages
92
no deductible applies to what
1. fire department service charge, 2. extra expense, 3. business income, 4. civil authority, and 5. fire extinguisher systems recharge expense
93
when is an additional 25,000 available
1. the direct physical loss and debris removal expense together exhaust the limit of insurance 2. the max amount collectible for debris removal ( 25% of the loss plus the deductible ) is not enough to cover the debris removal expense

Insurance (16 decks)

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