Percuniary Insurance Flashcards
Under a typical legal expenses policy what limit of cover if any usually applies within the period of cover?
Overall cover is usually unlimited but there is a limit per claim.
What are the two dimensions of business interruption cover?
The monetary amount that needs to be insured. The time that the interruption will affect the business
What is the effect of the material damage warranty in relation to the inclusion of nondomestic boilers or economisers as a policy extension to the standard business interruption policy?
Since the material damage warranty applies, it is essential, if the insured has nondomestic boilers or economisers, they have material damage cover against explosion in respect of these items..Otherwise, they will lose the benefit of the additional cover. This also applies if cover is required for explosion damage from neighbouring premises.
What is the basic purpose of legal expenses insurance?
To provide indemnity for costs arising out of the need to seek legal advice or to pursue or defend civil action.
Property insurance versus pecuniary insurance
Property insurance is concerned with tangible materials whereas lacunar insurance is concerned with intangibles such as income.
What is a civil action?
Are those that are not prosecuted in the criminal courts. They tend to relate to legal redress such as compensation for injury or damage or perhaps a different remedy such as injunction.
Policies brought before the event BTE protect policyholders in case legal action has to be fought or defended in the future Whereas ATE insures…
Policies ball after the event insure the policyholder when they have already decided to take a or defend a legal action and provide cover against paying the other side costs these are usually stand-alone policies.
What are the two main types of policy cover available in respect of legal expenses insurance?
Group legal benefit policies these are more like employee benefits the employer would usually arrange discover.
Commercial legal protection policies.
Why might someone buy a commercial legal protection policy?
They are usually taken out by businesses to protect themselves in their capacity as employers, manufacturers, property owners et cetera
What does business interruption insurance cover?
The actual or potential loss of earnings and additional expenses incurred as a result of a material loss.
What is the total amount insured for a business interruption insurance policy?
Gross profit wages salaries and additional expenses such as renting alternative premises. Net profit plus standing charges.
What are the most common business interruption policies?
Fire and special perils, all risks and engineering
In a business interruption insurance policy a fire and special perils all risk policy can be extended to cover?
Damage at suppliers and/or customers where are you businesses continued existence depends on them.
What are the optional extensions to legal expenses insurance?
libel And slander protection. Cover against the cost of involvement in public enquiries. Cover against the cost of investigations by professional bodies. Cover against the cost of taxation proceedings.
What is the purpose of business interruption insurance?
Business interruption insurance covers the actual or potential loss of earnings I.e gross profit and additional expenses incurred as a result of material loss
