Property & Casualty Terms
Standard Deductible for CCP
$500
Symbols designations
1-9,19 describe the types of autos covered under the Business Auto Coverage form
Trailers being towed
Business Auto form provides liability coverage but not automatic coverage for physical damage
4 Components of Commercial Package Policy (CPP)
Common Policy Declarations Page; Common Policy Conditions; Interline Endorsements; Coverage Parts
Endorsement Available for CPP
Endorsements include: Ordinance or Law Coverage, Peak Season Limit of Insurance, Value Reporting Form, Spoilage, Earthquake and Volcanic Eruption Endorsement and Vacancy Permit
loss
Reduction, decrease, or disappearance of value.
Coverage Extensions for Business Auto Coverage Form
Supplementary Payments and Out-of State Coverage
Government Crime Coverage Form
Written on either Loss-Sustained or Discovery Form for gov. entities; contains separate theft loss limit that applies to each employee or contain own loss limit for all theft due to one employee
Premises and Operations Exposure (of CGL)
applies to an insured business that conducts its operations both at it own premises and elsewhere ex. accountant in office and at clients home
Section III-Garagekeepers Coverage
is physical damage insurance for amounts the insured is legally obligated to pay for loss or damage to a customer's vehicle while in insured's care
Speculative Risk
lose or gain , like gambling
insurance
transfer of risk
Builders Risk Coverage Form
Covers building under constructions, foundations,attached fixtures/machinery, equipment used to service buildings, building materials and supplies on premises or within 100 feet that will be permanently located in or on covered building
Insured Contract
LEASE Lease of premises Easement An obligation to indemnify a municipality Sidetrack Agreement-bet RR & bus. it services Elevator Maintenance Agreements or that part of the contract pertaining to insured's business
SPECIAL Causes of Loss Form
Which Commercial Property Causes of Loss form has the broadest coverage? Provides insurance for losses caused by risks of direct physical loss except those perils that are specifically limited or excluded; this form provides Open Perils Coverage
Handling Risk
(STARR) Sharing (doing insurance between people you know, not a company) , Transfer (actual insurance, transf. risk to ins. comp. ) , Avoidance (avoid any potential claim, i.e. not buying a car so you dont crash), Reduction (take steps to reduce risk), Retention (retaining ALL the risk by self insurance, or some of the risk like a deductible where you "retain" first $500)
Three Forms of Business Income Coverage
1. Business Income and Extra Expense Coverage Form 2.Business Income Without Extra Expense Coverage Form 3. Extra Expense Coverage Form
Commercial General Liability Coverage 4 Legal Liability exposures
1.Premises and Operations Exposure 2. Products Exposure 3. Completed Operations exposure 4. Contingent Liability Exposure
# of Crime coverage optional insuring agreements
8- may choose one or several
Exposure
A unit of measurement used to determine rates charged for insurance coverage based on how risky they are.
Commercial Package Policy
Common Policy declarations and Common Policy Conditions form which apply to the entire policy regardless of types of coverage written
Contents of Common Policy Conditions
Contains the legal obligations & duties of the insured and insurer, including cancellations, changes, examination of books, inspections& surveys, premiums, and transfer of rights and duties
Interline Endorsements of Commercial Policy Package
Coordinate the coverage in multiple coverage parts of the policy to prevent redundancy
CPP (Commercial Package Policy) Coverage Extension if coinsurance is 80%in Declaration
Coverage Extension fr newly acquiredd or constructed property, personal effects and property of others; valuable papers and records, property off premises, outdoor property and Non-Owned detached trailers.
Building and Personal Property Coverage Form of CCP
Covers buildings, business personal property such as furniture, machinery and stock and personal property of others. Does not provid liability coverage
BASIC Causes Loss Form for Commercial Package Policy
Covers fire, lightning windstorm, hail, aircraft, riot, vehicles, explosion, smoke, vandalism, sprinkler leakage, sinkhole collapse and volcanic action. Limited coverage for fungus, wet rot dry rot bacteria. Limit of insurance is up to $15,000 for all losses occurring in 12 month period
Business Auto Coverage Form
Covers owned, leased, hired, rented or borrowed private passenger autos, trucks, trailers and semitrailers that are owned and used by the insured
BROAD causes of Loss Form
Form includes perils listed in BASIC causes of loss form, PLUS perils of falling objects, weight of ice and water damage caused by accidental discharge.
Section III-Physical Damage Coverage for Business Auto Coverage Form
Include comprehensive, specified causes of loss and collision coverages, towing, glass breakage and coverage extenssions including transportation expenses and loss of use expenses
Building & Personal Property Coverage Form Additional Coverages
Includes debris removal, preservation of property, fire dept service charge, pollutant clean up, increased cost of construction and electronic data
Extra Expense (definition)
Necessary expenses incurred by the insured during the period of restoration that would not have been incurred had the covered loss not occurred.
Agreement
Offer and Acceptance When an offer made by one party has been accepted by the other, with mutual understanding by both.
Two types of risk
Pure risk and speculative risk
Contents of Common Policy Declarations Page
Shows the who, what, when, where and how much of entire policy, each of the coverage parts included and a Declarations page for each coverage part
Legal Liability Coverage Form
Written for a commercial tenant who, under the terms of a lease, is responsible for damage to the building. It covers the insured's legal liability for loss or damage to real or personal property of others that is in the insured's care and is caused by a covered peril.
Common carrier
a business individual or organization that carries the general public or property owned by general public for a fee, from one place to another and may use either of the overage forms
Collision
a covered vehicle's impact with another vehicle or object or overturn
Theft
any act of stealing and includes robbery or buglary
Products Exposure of CGL
applies to bodily injury or property damage caused by any goods or products that are manufactured sold, handled, distributed or disposed by the insured and others conducting business under insured's name
Completed Operations Exposure of CGL
applies to occurrences that occur after insured's operations have been completed and result from improper or defective workmanship, installation, construction or repair
Contingent Liability Exposure of CGL
applies when liability of others caused the insured to be legally liable for the actions of or failures of other parties such as sub-contractors or independent contractors
General Conditions
apply in addition to the Common Policy Conditions and covers bankruptcy, concealment, misrepresentation, fraud, premium audit, policy period and include territory
Loss Conditions under Business Auto coverage
apply in addition to the Common Policy Conditions and include appraisal, duties in event of an accident, legal action against the insurer, loss payment and trasfer of rights of recover.
Transportation Expenses under Business Auto Coverage
begin 48 hours after total thefts and pays $20 per day, max. $600
Coverage C- Medical Expense Exclusions
bodily injury sustained during athletic event, covered under products completed operations hazard, covered by workers comp excluded under Coverage A or by any insured, emploee or tenant of the described location
Contract Carrier
business or individual that carries persons or property from one place to another for a fee and may refuse to carry persons or property; may only user Motor Carrier Coverage Form
peril
cause of loss like a fire or hail (in health insurance perils would be sickness or accidental injury, in life ins. it would be death) causes you to file claim, not every peril is covered, (in homeowners, flood is always excluded)
Products liability claimes
covered worldwide if the insured's products are made or sold in the coverage territoy and lawsuit is brought in coverage territory
Motor Carrier Coverage Form
covers business exposures of a firm transporting the goods of others for hire and transporting their own property
Truckers Coverage Form
covers business exposures of motor carriers for hire that transport the goods of others
Money Orders and Counterfeit Money
covers insured's acceptance in good faith of money orders and counterfeit money received in exchange for services or merchandise
Employee Theft or Dishonesty
covers loss of money, securities
Computer Fraud
covers losses when computer is used to transfer funds fraudulently; not computer insurance
Inside the Premises: Robbery or Safe Burglary - of other Property
covers most types of tangible property from loss resulting from actual or attempted robbery of custodian
Comprehensive Coverage
covers physical damage to a covered auto or its equipment on open perils bassis. Coverage is not provided for loss by collision.
Inside the Premises: Theft of Money and Securities
covers theft or deconstruction of money and securities inside insured premises including damage to premise, exterior, safe, cash register from actual or attempted entry
Motor Carrier Act of 1980
deregulated trucking industry;requires certain vehicles carry specific minimum limits of liability for protection of public depending upon merchandise being transported
Liability Exclusions for Business Auto Coverage Form
expected or intended injury, contractual, workers comp, employee indemnification and employer's liability, fellow employee, care, custody and control, handling of property, movement of property by mechanical device, operations, completed operations, pollution, war, racing
Commercial General Liability Conditions
include Bankruptcy; Duties in the Event of Occurrence, Claim or Suit; Legal Action against the Insurer; Other Insurance; Premium; Audit; Representations; Severability; Subrogation; Insurer Does Not Renew; and Insured's Right to Claim Information
CGL Coverage A Exclusions
include Expected or intended Injury, Contractual Liability,Liquor Liability, Workers Comp, Employer's Liability, Pollution, Aircraft, auto, watercraft, transportation of mobile Equipment and War. Also damage to property, damage to Insured's product, damage to insured's work, damage to impaired property, product recall, personal and advertising injury and electronic data
Accident
includes continuous or repeated exposure to the same conditions that results in bodily injury or property damage
Advertising Injury under Coverage B CGL
includes used of another's idea in insured's advertisement ; infringement of copyrit, trade dress or slogan
Hazards
increase the chance of the risk occurring, potential dangers
Custodian
insured or employee, while having care and custody of covered property while inside premises, excluding any person while acting as a watchperson or janitor
CGL's Coverage A Insuring Agreement
insurer will pay if insured is legally obligated to pay for covered bodily injury or property damage
Forgery or Alteration
insures against forgery or alteration of checks, etc regarding payment of a sum of money
CPP Time Element (Business Income) Form
insures indirect losses such as loss of income and extra expenses
Outside the Premises
insures money and securities in hands of messenger
Personal Injury under Coverage B CGL
libel;slander;false arrest;detention;imprisonment;malicious prosecution; wrongul entry; wronful eviction and invasion of privacy
Discovery Form
like Claims-made form, requires use of a retroactive date, provides coverage for losses discovered during policy period but din not necessary occur during policy period
Standard builders risk coverage form is on Completed Value Basis
limit of coverage reflects anticipated replacement value of covered building when construction is completed
Loss-Sustained Form
line Occurrence form, provides coverage for losses that took place and were discoverd during policy period or were discovered within one year of termination of policy
moral hazard
lying on purpose, i.e. lying on insurance application
extortion
may be added by endorsement to Commercial Crime to insure loss due to threat of bodily harm or damage to premises
General Aggregate Limit
most insurer will pay during policy period
Business income definition
net income (net profit or loss before income taxes) that would have been earned had loss not occurred plus normal , ongoing operating expenses, including payroll
Mysterious disappearance
not considered theft, burglary or robbery; it is loss of property when cause of loss is unknown
Exclusions under Business Auto Coverage
nuclear hazard, war, racing, stunt, wear and tear, freezing, mechanical or electrical breakdown, blowouts electronic equipment
Insured's work
operations performed by named insured includes materials, parts, equipment, warranties etc
Supplementary Payments for CGL Coverage A and B
paid in addition to limit of liability include all claim-related expenses- up to $250 bail, court costs etc
CGL Coverage C- Medical Expenses
pays for medical expenses for bodily injuy incurred inthe covered territory and during policy period caused by accident on insured premises or because of insured's operations
Truckers Coverage Form and Motor Carrier Coverage Form
provide insurance for unique exposure of common carriers and contract carriers
Section I- Covered Autos (Garage coverage Form)
provides a schedule of covered auto designation symbols and adds two unique symbols for Garage Coverage Form
Garage Coverage Form
provides auto liability and physical damage coverage as well as General Liability coverage for an insured that is engaged in sale, service, repair, parking or storage of autos; eliminates the coverage gaps and overlaps found when other commercial lines policies are comined to provide Premises liability, products liability Auto liability, Auto physical damage and Garagekeepers coverage
Section II- Liability Coverage (for Garage Coverage Form)
provides bodily injury and property damage liability coverage for losses resulting from garage operations, products liability and completed operations liability
Claims-Made Form Trigger
provides coverage for losses that take place after the retroactive date and befor the end of the policy period, and for which claims are made during policy period or extended reporting period.
Occurrence Form Trigger
provides coverage for losses that take place during the policy period, regardless of when loss is reported
Specified Causes of Loss for Business Auto Coverage
provides coverage for the perils of fire, lightning, explosion, theft, wind, hail, eartquake, flood, vandalism, sinking, collision or derailment of the conveying vehicle.
Endorsement for Motor Carrier Policies of Insurance for Public Liability (form mcs-90)
provides evidence of financial responsibility meeting the DOT financial responsibility requirements, on behalf of the motor carrier to the ICC
Business Auto Physical Damage Coverage Form
provides physical damage coverage for covered autos that meet any of five symbols designations; this form may be included on commercial package policy
Section IV-Physical Damage Coverage
provides physical damage coverage for covered autos the insured owns, hires, rents, leases or borrows and is the same Physical Damage Coverage under Business Auto Coverage Form
Coverage B of CGL- Personal and Advertising Injury
provides protection for liability arising from person and advertising injury offense
Law of Large Numbers
says the more data you have on exposures, the more predictable the losses will be
Morale Hazard
sense of carelessness or indifference to a loss because of the existence of insurance
Robbery
taking of property from custody of a person by threatening bodily harm, includes taking of property in presence of an employee
Burglary
taking of property from inside the premises or from locked safe by person committing forcible entry while trespassing
Messenger
the insured, or employee while having care of covered property while outside the premises
Condominium Association Coverage Form
used in place of Building and Personal Property Coverage Form when insuring building and fixtures that are part of building insured by condo association. Includes items such as appliance, ac
Garagekeepers limit of liability for customer vehicles
usually express as a Blanket Limit covering the total of all customer vehicles in insured's care
Commercial Crime Coverage Form
written on either a Loss-Sustained or Discovery Form, designed for private businesses and insuring agreement contains one limit of insurance for all types of employee theft