Chapter 6 Flashcards
What are the three basic perils covered by ‘standard’ fire cover?
‘Standard’ fire cover is made up of:
• fire;
• lightning; and
• explosion.
What four groups of exclusions apply to an ‘all risks’ fire insurance policy?
The four groups of exclusions are as follows:
• absolute exclusions;
• gradually operating exclusions;
• aspects of cover which can be written into the policy (for additional premium); and
• property or risks more suitable to cover under another type of policy.
How do insurers limit the meaning of ‘theft’ as defined in the Theft Act 1968?
Insurers include a phrase that the theft must ‘involve entry to or exit from the premises by forcible and violent means’.
Name two optional extensions to a standard money policy.
The standard money policy may be extended to include:
• personal accident/assault; and
• credit cards.
What is the purpose of business interruption insurance?
Business interruption insurance covers the actual or potential loss of earnings and additional expenses incurred as a result of a material loss covered under a property insurance.
What are the main sections contained within a commercial legal expenses policy?
The main sections are: • employment disputes cover; • criminal prosecution defence cover; • property disputes cover; • motor cover; • patents, registered designs, copyright and trademarks cover; and • taxation proceedings.
What is the standard policy cover under a products liability insurance?
The standard policy covers legal liability for bodily injury or property damage arising out of goods or products that an insured has manufactured, constructed, altered, repaired, serviced, treated, sold, supplied or distributed.
What is the standard policy cover under a professional indemnity insurance?
Professional indemnity insurance covers professional persons’ liability for injury, damage or financial loss to clients or the public as a result of breach of professional duty, or negligent acts, errors or omissions in their professional capacity.
Is cyber insurance a first party or third party insurance, and what is the difference?
Cover for cyber losses may be required for both first party and third party covers. The cover a customer receives will depend on the product offered by the insurance they choose. An insurer may cover first party losses only, third party losses only and associated costs (e.g. defence costs, costs of public relations), or both under one or multiple products.
First party losses relate to the proposer’s assets or finances. Third party losses relate to the proposer’s duty of care to third parties and their property.
