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26 Cards in this Set
- Front
- Back
Commercial property defined |
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Commercial property policy forms |
Commercial property has two common policy forms: |
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commercial named perils policy form |
eight perils are included in this form : |
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commercial broad policy forms |
many advantages to broad : |
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How to determine a commercial premium |
to arrive at a premium insurer will first determine basic fire rate. |
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Fire rate protection consideration |
There are two types of protection to consider when calculating fire rate |
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Common clauses on commercial property insurance forms |
On both broad and named perils there are common clauses such as : |
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Description of property insured - commercial policy clause |
1. building- must be described on from page |
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Co insurance clause |
In order to keep it fair , for insurers and insureds, partial losses are required to have co- insurance |
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Limits of commercial insurance |
This comes within the co-insurance clause. |
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Determining the amount of settlement for a partial loss |
After determining the minimum limit of insurance ( no less than 80% of ACV) you can determine the amount of insurance that should be purchased with in the limit. |
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waiver of co-insurance clause |
this clause states |
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Debris removal |
covered in broad form for commercial prop |
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Reinstatement clause |
this clause states that the limits of insurance will remain unchanged within ENTIRE policy period- regardless of the number and amounts of claims paid |
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Subrogation Clause |
Subrogation is a legal right of insurers to seek recovery from the third party that caused damage to insureds property |
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Additional commercial insurance coverage |
ontop of named peril form or broad form these can be purchased separately 5)boiler and machinery policy |
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Glass insurance for commercial prop |
purchased separate from broad or named peril forms |
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Crime insurance for commercial prop |
purchased separate from broad or named peril forms. those two provide basic theft coverage, vandal and riot. this is more indepth |
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1) Burglary insurance |
within crime insurance for commercial prop |
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robbery insurance |
within crime insurance for commercial prop |
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theft insurance |
within crime insurance for commercial prop |
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Boilers and machinery policy |
additionally coverage for commercial property . |
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Contractors insurance |
this falls under commercial property insurance, but because none of the commercial insurance covers while vacant or under construction , contractors insurance is needed. There are three types |
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Builders risk - broad form |
A type of contractors insurance |
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Business Interruption coverage |
when business is temp closed or resuming at partial operations from peril this coverage will:
1) contract of indemnity - restores income to level prior to loss 2)insures same perils as(com) prop policy 3)coverage not limited to policy period- fromday of loss up to 12 months,even if policy expire 4) pays expenses when they reduce amount of loss - will pay expenditures to resume op quickly THERE ARE THREE TYPES OF"BIC' : earnings form, profits form, extra expense insurance |
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types of Business Interruption coverage |
THERE ARE THREE TYPES OF"BIC' : |