CPP (commercial package policy) (Ch 7)
the most significant different between the claims made and the occurrence form of a general liability policy is
what triggers the insurance coverage
Exclusions of the Special cause of loss form
(similar to DP-3 and HO-3) -wear and tear -deterioration -rust -dry rot -industrial smoke -pollutants -mechanical breakdown -settling -shrinking -expansion -vermin -rodents -insects -domestic animals -mold
Basic Broad and Special for Property
-agritainment excluded for property & liability coverage -endorsements available
what are the two forms
-claims made forms -occurrence form (mainly used)
how many coverage parts are there in CPP
-commercial property -general liability -commercial auto -crime -inland marine -equipment breakdown -farm
Other coverage form
-condo association; owner of building -condo unit owner; commercial customer owns the unit they occupy -legal liability; warehouse, storage facility, coverage based on contractual obligation
Broad & Special Form Cover Animal
-cover livestock, including electrocution, suffocation, attacks by wild animals, accidental shooting, drowning - loading or unloading mishaps
Mobile Agricultural Machinery
-covered on farm property but can be stand alone -$50,000 extension for newly acquired machinery fro 30 days
Optional Coverage - need to be purchased
-inflation guard (home up to date) -builders risk (ac unit, building material) -business income coverage form -contingent business interruption insurance (indirect loss) -the extra expense coverage form -earthquake endorsement (168 hr same event) -value reporting from (inventory fluctuates depending on the time of year) -peak season endorsement (holiday season) -ordinance or law coverage endorsement -spoilage coverage endorsement
what are the extended reporting policys and what are the time frames for each
-mini tail - 60 days from the end of the policy to report claim -midi tail - 1 to 5 yr supplemental tail -maxi tail - forever supplemental
Livestock
-newly acquired animals covered for 30 days -no freezing or poultry
CGL proves Medical Expense Payments for injuries if the expenses are insured and reported to the insured within ___________ yr
1 year
What/How are the categories of eligible marine risk
1.import 2.export 3.domestic shipments 4.instrumental of transpiration or communication 5. personal property floater 6. commercial floater
what is the time frame to report a claim
2 yr
Farm Coverage form
A- building/ residential dwelling B- other private structures C- household personal property D- loss of use E- scheduled farm personal property F- unscheduled farm personal property G- other farm structures
Occurrence form
BI or PD that occurs during the policy period trigger: did the "event" happen during the policy period
an Inland Marine policy that covers the insureds merchandise held for sale, the insureds property off premises, customers property in the custody of the insured and property being transported is a
Jewelers Block policy
CGL contracts cover what
L-lease contracts for equipment and premises E-easement or a license agreement A-agreement to indemnify S-sidetrack agreement, often known as a railroad siding E-elevator/escalator maintenance agreement
Types of property
Money- currency, coin, travelers check, money order Securities- negotiable & non instruments, or contracts representing money (ex-stamp) Property-other than money & securities
Theft (Larceny)
act of stealing, theft is a broad category including the act of stealing, such as burglary and robbery
Special cause of loss form
all risk of physical loss to both the building and business personal property. special maximum limits for theft of certain business property, such as a maximum of $2,500 for fur, jewelry, watches, and precious stones
Custodian
any of the insured partner/employee while having care and custody of the insured property inside the premises. not including watchperson or janitor
Messenger
any of the insured partner/employee while having care and custody of the insured property outside the premises
Watchperson
any person the insured retains to have care and custody of property inside the premises and who has no other duties
what are the types of cause of loss forms
basic broad special
Basic cause of loss form
covers REV FL SHAW (11) also include sprinkler leakage, sinkhole collapse, and volcanic action
Broad cause of loss form
covers basic perils + 3 more WWF, weight of ice, snow or sleet, water damage other than flood, and falling objects. in addition broken glass, collapse or the structure is also covered
which type of crime coverage requires more than just an inventory computation in order to prove a loss has occurred
employee theft
optional coverage on the commercial property policy to minimize the suspension of operations is know as
extra expense coverage
what crime form covers the holiday inn if a guest claims their property was damaged while in the hotel safe
guest property
in order for coverage to apply within the products and completed operations hazard of a CGL, the injury or damage must NOT
have occurred on the insureds premises
business income coverage is
indirect consequential coverage
The BI and PD coverage on a farm liability policy provides coverage for
injury to the guest
what is not covered in coverage A- bodily injury and property damage on a CGL
libel, slander, and false arrest are not covered
Equipment breakdown policy, expediting expenses does not cover the reasonable cost
of permanent replacement
The commercial package policy does NOT provide protection for what type of insurance?
personal liability.
The supplemental extended reporting period on a claims made CGL is
purchased for time frames of up to five years, or forever.
the taking of property by a visible sign of a forced entry or threat of bodily harm would be covered by which crime forms
robbery and safe burglary
the commercial cause of loss form that covers theft of business personal property is the
special
Extortion
surrender of property away from the premises as a result of a threat communicated to the insured to do bodily harm to an insured or person, or allegedly is, being held captive (kidnapping)
Safe Burglary
taking property from a locked safe or vault by a person unlawfully entering the safe vault as evidenced by visible marks of forced entry on the safe, also includes taking the safe/vault from the premises
Robbery
taking property from the care and custody of a person by someone who has caused or threatened to cause bodily harm
Claims made form
the claim must be reported while the policy is in force or with in 60 days after the expiration date . will contain a retroactive date trigger: when was the "event" reported?
Premises
the interior of that portion of any building occupied by the insured for the purpose of conducting business
Burglary
unlawfully entering or leaving the premises as evidenced by marks of forcible entry or exit. visible damage at the point of entry or exit
in order to avoid problems with under or under-insurance, a business with a fluctuating inventory should write coverage on a ___________ basis
value reporting
in the newest edition of the commercial property form which of the following is now considered part of the building
vegetated roofs
volunteer workers are covered under the commercial general liability policy but only under which of the following circumstances
while performing duties related to the business