Commercial Package Policy Flashcards by Arianna Hurtado

What are the 7 Commercial Package policies (CPP)?
HINT: PIGFACE

P - Commerical Property
I - Commerical Inland Marine
G - Commerical General Liability
F - Farm Property and Liability
A - Commerical Auto
C - Commerical Crime
E - Equipment Breakdown Protection Coverage

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Commercial Property Coverage Forms:
What are the 8 Commerical Property Coverage Forms?
HINT: BBBCCCLE

Building and Personal Property
Business Income without Extra Expenses*
Business Income and Extra Expenses*
Commerical Builders Risk
Condominium Association
Condominium Commercial Unit-Owners
Legal Liability
Extra Expense*

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Commercial Property Coverage Forms:
The primary coverage of this section. Covers a business’ buildings, business personal property, and the personal property of clients.

Building and Personal Property Coverage Form

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Commercial Property Coverage Forms:
Insurance that provides coverage for buildings under construction as well as equipment to service the building, owned materials and supplies, and temporary structures used in construction.

Commerical Builders Risk Coverage Form

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Commercial Property Coverage Forms:
Insures a condominium association against direct physical loss or damage to: buildings, business personal property, and personal property of others in the car, custody, or control of the association while it is at the premises.

Condominium Association Coverage Form

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Commercial Property Coverage Forms:
The portion of a condominium owned solely by a unit-owner. It covers the insured’s business personal property and the personal property of others.

Condominium Unit-Owners Coverage Form

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Commercial Property Coverage Forms:
It covers the insured for negligently damaging property owned by others, but in the insured’s care, custody or control.

Legal Liability Coverage Form

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Commercial Property Coverage Forms:
Covers additional expenses incurred by the insured’s business to continue operations following a direct loss by a peril insured against.

Extra Expense Coverage Form

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Commercial Property Causes of Loss Forms:
What are the 3 Commercial Property Coverage Forms?

Basic
Broad
Special

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Commercial Property Causes of Loss Forms:
What is Loss Form 1 called?
What is covered?
What basis is Loss Form 1 covered on?

BASIC FORM

WHARVES + fire, lightning, vandalism, sprinkler leakages, sinkhole collapses, and volcanic action

Named Perils basis

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Commercial Property Causes of Loss Forms:
What is Loss Form 2 called?
What is covered?
What basis is Loss Form 2 covered on?

BROAD FORM

Everything in the Basic Form + falling objects, weight of snow, ice, or sleet, water damage + Collapse Additional Coverage

Named Perils basis

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Commercial Property Causes of Loss Forms:
What is Loss Form 3 called?
What is covered?
What basis is Loss Form 3 covered on?

SPECIAL FORM

All causes of loss are covered except for those specifically excluded.

E.g. exclusions: earth movement, wear and tear, water damage, etc.

Open Perils basis

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Commerical General Liability:
Covers business liability exposures. Covers premises and operations, exposure, products completed, operations exposure, and indirect/contingent liability exposure.

Commercial General Liability (CGL)

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Commercial General Liability:
On location at your business.
“Your premises”

Premise Liability

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Commercial General Liability:
You made a product/goods, sent it to the customer, and then they had a problem.
E.g. a cellphone exploding

Products-Completed

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Commercial General Liability:
At the location of where you do business.
“Where you’re operating”

Operations Liability

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Commercial General Liability:
If the loss occurred during the policy, it is covered. Even after the policy ends.

Occurence

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Commercial General Liability:
If the claim occurred during the policy and the retroactive date, it is covered.

Claims-Made

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Commercial General Liability Coverage Forms:
What are the 3 CGL Coverage Forms called?

Coverage A: Bodily and Property Damage
Coverage B: Personal Injury and Advertising Injury
Coverage C: Medical Payments

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Commercial General Liability Coverage Forms:
What is Coverage A called?
What is covered under Coverage A?
Who is Coverage A for?

Bodily and Property Damage

Covers BI and PD related claims against your business. Coverage is offered as a 1. Occurrence or 2. Claims-Made

Coverage is for other people.

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Commercial General Liability Coverage Forms:
What is Coverage B called?
What is covered under Coverage B?

Personal Injury and Advertising Injury

It covers liability arising out of offenses such as:
libel, slander, false arrest, infringing/copyright, or malicious prosecution.

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Commercial General Liability Coverage Forms:
What is Coverage C called?
What is covered under Coverage C?
Who is Coverage C for?

Medical Payments

Pays for medical expenses incurred for bodily injury caused by an accident on premises the insured owns/rents on the way to the premises, or arising from the insured’s premises.

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Commercial Marine and Aviation Definitions:
A guideline for classifying:
- Inland Marine
- Ocean Marine
- Domestic Shipments in Transit

Nationwide Marine

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Commercial Inland Marine Coverage Forms and Floaters:
Provides open perils coverage on the insured’s equipment, such as mobile tools, equipment, and machinery. Also includes forklifts, small hand tools, mobile equipment, and compressors.

Contractors Equipment Floater

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Commercial Inland Marine Coverage Forms and Floaters: Typically insures computer hardware and associated equipment used for business, as well as data and media, including software, discs, tapes, and cells.

Electronic Data Processing Coverage Form

Commercial Inland Marine Coverage Forms and Floaters: Provides worldwide insurance for cameras, projection machines, films, musical instruments, related equipment, and similar property of others in the insured's care when these types of property are used for business or commercial purposes.

Commercial Articles Coverage Form

Commercial Inland Marine Coverage Forms and Floaters: Is moveable property- such as electrical, plumbing, or heating equipment- to be installed in a building. Carpeting, tile, glass, elevators, machinery, and similar property can also be included in coverage.

Installation Floater

Commercial Inland Marine Coverage Forms and Floaters: Available to add insurance signs, street clocks, and similar property in the insured's care. This form can be used to cover neon signs, automatic or mechanical signs, billboards, and ordinary fixed or plastic-faced signs. This form will not apply if loss or damage occurs during transportation, installation, repairing, or dismantling.

Signs Coverage

Commercial Inland Marine Coverage Forms and Floaters: Covers jewelry held as stock by jewelry retailers, wholesalers, and manufacturers, including the similar property of others in the insured's care and stock that has been sold but not delivered. This property includes jewels, watches, gold, silver, platinum, pearls, and precious and semi-precious stones.

Jewelers Block Floater

Commercial Inland Marine Coverage Forms and Floaters: Provides insurance when the insured's business records are destroyed in a loss caused by a covered peril, and the business is unable to collect the money it is owed. The policy pays for the uncollected sums, plus the expenses involved with reconstructing records.

Accounts Receivable Coverage Form

Commercial Inland Marine Coverage Forms and Floaters: Provides insurance for the destruction of valuable papers and records, which include abstracts, books, deeds, drawings, films, maps, and mortgages. Coverage doesn't apply to money or securities, data, property held as samples, property held for delivery after a sale, or property in storage away from the premises.

Valuable Papers and Records Floater

Commercial Inland Marine: What is the following? - Abandonment - Appraisal - Duties in the Event of Loss - Loss Payment - Other Insurance - Pairs, Sets or Parts - Recovered Property - Reinstatement of Limits After Loss - Transfer of Rights of Recovery Against Others to Us

Commercial Inland Marine Loss Conditions

Commercial Inland Marine: What is the following? - Concealment, Misrepresentation, or Fraud - Control of Property - Legal Action Against Us - No Benefit to Bailee - Policy Period, Coverage Territory - Valuation

Commercial Inland Marine Conditions

Commercial Inland Maine Transportation Coverages: Is used when a carrier, who owns the motor truck itself, has accepted the property of others for transport under a bill of lading or other shipping receipt.

Motor Truck Cargo Carriers Coverage Form

Commercial Inland Maine Transportation Coverages: Is used when the named insured owns both the motor truck itself and the cargo being carried by the motor truck.

Motor Truck Cargo Owners Coverage Form

Commercial Inland Maine Transportation Coverages: Is useful for insureds who ship or receive cargo throughout the year. The form protects the insured's personal property and the personal property of others in the insured's care while it is in transit by any hired carrier or messenger. Coverage is also provided when shipped in or on any land vehicle the insured owns or operates.

Annual Transit Coverage Form

Commercial Inland Maine Transportation Coverages: Is useful for insureds who do not make regular shipments, but wish to insure a single shipment.

Trip Transit Coverage Form

Commercial Ocean Marine Property Coverages: Covers physical damage to the ship itself, including fittings and machinery of the vessel.

Hull Insurance

Commercial Ocean Marine Property Coverages: Covers physical damage losses to merchandise in transit.

Cargo Insurance

Commercial Aviation Coverages: Provides coverage for physical damage to the airplane, including its frame, engines, controls, and navigation and communication equipment.

Aircraft Hull Insurance

Commercial Aviation Coverages: Provides coverage for the insured's legal liability for bodily injury or property damage that arises out of the ownership, maintenance, or use od an aircraft.

Aircraft Liability Insurance

Commercial Crime General Definitions: Breaking in. Causing damages of some sort.

Burglary

Commercial Crime General Definitions: A person was there and felt threatened or scared. "ROB was there"

Robbery

Commercial Crime General Definitions: Only person in the insured's service who is compensated by salary, wages, or commissions, and who is directed by the insured.

Employee

Commercial Crime General Definitions: The act of stealing.

Theft

Commercial Crime General Definitions: Is anyone the insured retains specifically to have care and custody of property insured on the premises, and who has no other duties.

Watchperson

Commercial Crime General Definitions: Has care and custody of the property inside the premises but a _________ refers to the insured or any of the insured's partners or employees.

Custodian

Commercial Crime General Definitions: Is the insured or any of the insured's partners or employees while having care and custody of covered property outside the premises.

Messenger

Commercial Crime General Definitions: Coins, currency, bank notes in current use, traveler's checks, money orders, and registered checks held for sale to the public. Does not include evidence of debt.

Money

Commercial Crime General Definitions: negotiable and non-negotiable instruments of contracts representing money or other property, including token, tickets, revenue, stamps, and other stamps in current use, and evidences of debt in connection with change or credit cards.

Securities

Commercial Crime General Definitions: Any tangible property other than money and securities that has intrinsic value. Does not include computer programs or electronic data.

Other Property

Commercial Crime Coverage Forms: What are the 2 Commercial Crime Coverage Forms?

1. Loss Sustained Form 2. Discovery Form

Commercial Crime Coverage Forms: Coverage applies to loss that occurs during the policy period and is discovered within 1 year after the policy period ends.

Loss Sustained Form

Commercial Crime Coverage Forms: Provides coverage for losses that occurred at any time before the effective date of the policy cancelation, as long as the losses are discovered during the during the policy period or during the appropriate extended period to discover the loss.

Discovery Form

Commercial Crime Insuring Agreements: Provides blanket coverage that applies to every person fitting the policy's definition of "employee".

Employee Theft

Commercial Crime Insuring Agreements: Protects an insured against loss due to the _______ __ __________ of checks, bank drafts, promissory notes, and similar documents drawn on the insured's bank account.

Forgery or Alteration

Commercial Crime Insuring Agreements: Covers not only theft but also the disappearance or destruction of money and securities from within the insured's premises or from within any banking premises or similar safe depository.

Inside the Premises Theft of Money and Securities

Commercial Crime Insuring Agreements: Applies to specific kinds of theft or tangible property, referred to as other property, such as jewelry, firearms, and computers. - damage to the insured's premises - loss to a locked safe or vault inside the premises

Inside the Premises Roberry and Safe Burglary of Other Property

Commercial Crime Insuring Agreements: Provides 3 coverages: Loss of MONEY and SECURITIES resulting directly from theft, disappearance, or destruction. Loss to OTHER PROPERTY resulting directly from actual or attempted robbery.

Outside the Premises

Commercial Crime Insuring Agreements: This coverage applies to money, securities, and other property resulting directly from the use of any computer to fraudulently transfer that property from the insured's premises or banking premises to a person or place outside of those premises.

Computer Fraud

Commercial Crime Insuring Agreements: Provides coverage for loss of money and securities resulting from the transfer of funds from the insured's financial accounts on the basis of fraudulent instructions to a bank or other financial institution. Either done in writing, by phone, or electronically.

Funds Transfer Fraud

Commercial Crime Insuring Agreements: Provides coverage for loss caused by acceptance of counterfeit money and money orders.

Money Orders and Counterfeit Money

Commercial Crime Bonds: Makes the promise E.g. Contractor (buys the bond) - he remodels a kitchen and makes a promise that it'd be done in 2 weeks. You (the obligee) will receive $20k from your insurance company if the promise isn't kept.

Principal (obligor)

Commercial Crime Bonds: The person the promise is being made to. E.g. You will receive the 20k if the kitchen is not done in 2 weeks

Obligee

Commercial Crime Bonds: The person/company who pays if the promise is NOT fulfilled. E.g. the insurance company will pay the 20k if the kitchen is not done in time.

Surety (Guarantor)

Commercial Crime Bonds: What kind of bond guarantees performance?

Surety Bond

Commercial Crime Bonds: What kind of bond backs the trustworthy?

Fidelity Bond

Equipment Breakdown Protection Coverage Form: Sometimes referred to as Boiler and Machinery insurance. Coverage for loss due to the breakdown of most types of equipment such as boilers, machinery, refrigeration systems, air conditioning systems, and electrical equipment.

Equipment Breakdown

Farm Coverage: What is the purpose of farm coverage?

It is written for an owner or tenant having an insurable interest in farming or ranching operations.

Farm Property Coverage Forms: What is Coverage A?

DWELLINGS Covers residential dwellings occupied by the farmer. Full replacement cost is provided if the insured carries at least 80% coinsurance.

Farm Property Coverage Forms: What is Coverage B?

OTHER PRIVATE STRUCTURES Automatically extends coverage A by up to 10% to cover unattached structures used as private garages.

Farm Property Coverage Forms: What is Coverage C?

HOUSEHOLD PERSONAL PROPERTY This applies if declared on the declarations page. An additional premium is paid.

Farm Property Coverage Forms: What is Coverage D?

LOSS OF USE Similar to a Homeowners policy. 1. Additional Living Expenses 2. Fair Rental Value

Farm Property Coverage Forms: What is Coverage E?

UNSCHEDULED FARM PERSONAL PROPERTY May be used to insure the specific property as listed on the declarations page: grain, feed, supplies, poultry, livestock, farm machines, and equipment. Growing crops are not covered.

Farm Property Coverage Forms: What is Coverage F?

SCHEDULED FARM PERSONAL PROPERTY May be used to cover generic farm property, including farm property away from the premises. - livestock: $2,000 max per head - farm machinery

Farm Property Coverage Forms: What is Coverage G?

OTHER FARM STRUCTURES May be used to cover structures other than dwellings including: sheds, barns, silos, and corrals. Pasture fences are not covered.

Farm Property Coverage Forms: What is Coverage H?

BODILY INJURY AND PROPERTY DAMAGE LIABILITY *At Fault* Like Coverage E on a Homeowners policy

Farm Property Coverage Forms: What is Coverage I?

PERSONAL AND ADVERTISING INJURY LIABILITY

Farm Property Coverage Forms: What is Coverage J?

MEDICAL PAYMENTS *Not At Fault* Like Coverage F on a Homeowners policy

Commercial Package Policy Flashcards

(79 cards)