Commercial Package Policy

Question 1

Commercial Package Policy (common policy conditions)

Answer 1

commercial property
business interruption
commercial general liability
inland marine
equipment breakdown
auto
WC cannot be added

Question 2

Common policy conditions (apply to all policies)

Answer 2

cancellation (cancels all)
premium payment
who can make changes/how they impact policy (1st named insured)
Company's right to examine records
company's right to survey & inspect

Question 3

Commercial Package Policy Cause of Loss Forms

Answer 3

Basic (fire, EC, V&MM)
Broad (fire, EC, V&MM + breakage of glass, falling objects, weight of ice/snow/sleet, water)
Special (open, includes theft)

Question 4

Covered property under Commercial package policy

Answer 4

building described in policy and includes (AVC)

• completed additions
• permanently installed fixtures, machinery, equipment
• outdoor fixtures
• personal property that the insured uses for maintaining and servicing the premises
• any additions under construction
• material/supplies on or within 100 ft

Question 5

Covered business personal property under Commercial package policy

Answer 5

in or within 100 ft of premises includes (AVC)

• furniture/fixtures
• machinery/equipment
• stock (inventory for retail business: if sold = retail price but if not sold = wholesale price)
• other personal prop. owned and used in the business
• labor and materials in property of others (ex. dry cleaner)
• improvements/betterments
• leased personal property - if you are contractually required to insure it

Question 6

Property not covered in Commercial package policy includes:

Answer 6

• money & securities
• animals
• land
• radio or TV antennas
• autos held for sale
• bridges/roadways
• fences
• detached signs

Question 7

Extension of Coverage for Commercial package policy

Answer 7

• must carry 80% or more in co-insurance and meet requirement
• newly constructed/acquired building, up to 30 days = up to $250,000
• Personal property = up to $100,000
• Personal effects & property of others = $2500
• Valuable papers = $2500
• Personal prop. off premises = $10,000
• Outdoor prop. = $1,000 ($250 per tree, shrub, plant)

Question 8

Additional Coverages for Commercial package policy

Answer 8

Debris removal

• up to 25% of loss (if total loss pay up to $25,000)
• pollutant cleanup $10,000 per policy period
• Preservation of property no limit and up to 30 days
• Fire Dept charge $1000
• Ordinance/law 5% of bldg. cvg / $10,000 whichever is less
• electronic data $2500
• signs $2500 (on & off premises)

Question 9

Business interruptions is

Answer 9

indirect loss coverage. provides protection of business income and extra expense

Question 10

business income

Answer 10

provides coverage for income lost because a business is out of operation

• covers during period of restoration (reasonable speed)
• prove you lost income
• net income +continuing operating expense (ins., utilities, lease, key employee salaries)
• extended business income period (60 days)
• form selection is basic, broad, or special
• civil authority, 4 weeks after a 72 hr deductible (due to a covered cause of loss to a neighboring property)

Question 11

Business owners policy, available for 4 types of businesses (revenue no greater than $3 mil)

Answer 11

1) apartment
2) office
3) mercantile. (no alcohol or deep fryinh)
4) contractor

Question 12

BOP available in

Answer 12

basic (standard) form
all risk (special) form

Question 13

BOP automatically includes

Answer 13

replacement cost building/contents
no coinsurance
business income & extra expense at actual loss sustained up to 12 months
commercial general liability - $1 mil per occurrence /$2 mil aggregate
Medical payments - $5000 per person (not at fault)

Question 14

Endorsements on BOP

Answer 14

Protective safeguards - discount for burglar/fire alarm
Utility Services - Direct damage - utility disruption due to a covered peril (ex. lightning hits transformer which causes power outage and destroys food)
Utility Services - Time Element - if the Direct Damage caused business interruption or extra expense, this provides coverage for u up to 10 days

Question 15

Inland ocean marine

Answer 15

on land or in air

Question 16

ocean marine

Answer 16

on water, on boat

Question 17

jettison

Answer 17

voluntarily throwing cargo overboard to prevent the boat from sinking

Question 18

bailees

Answer 18

property of others being held for business

Question 19

installation floater

Answer 19

covers property purchased but now yet installed

Question 20

motor truck cargo

Answer 20

covers cargo being transported

Question 21

Equipment breakdown coverage

Answer 21

covers objects for accidents

• damage to boiler/machinery itself
• damage to other property of owner
• for damage to property of others in the care, custody, control

Question 22

Equipment breakdown coverage limits (one deductible per accident)

Answer 22

expediting expenses: $25,000
Hazardous clean up: $25,000
Ammonia clean up $25,000
Water Damage $25,000

Question 23

Equipment breakdown conditions

Answer 23

Inspection and loss control (insurer can inspect w/out notice)
Coverage can be suspended on an object in dangerous condition with immediate written notice
Coverage provided on RC but AVC can be endorsed

Question 24

Farms are covered under a commercial package policy but

Answer 24

must be operated as a business

Question 25

rates

Answer 25

use then file within 30 days

Question 26

WAIP

Answer 26

Wisconsin Auto. Ins. Plan (prior approval)

Question 27

WIP

Answer 27

Wisconsin Ins. Plan (prior approval)

Question 28

WC

Answer 28

Workers Comp (prior approval)

Question 29

forms

Answer 29

file and use

Question 30

Domestic abuse & insurance

Answer 30

insurers cannot use a basis to cancel or deny coverage for individual, group or employer or to increase rates

Question 31

WIP (Fair Plan)

Answer 31

non-profit, unincorporated plan - provides basic property insurance and risk sharing to WI residents who cannot secure property ins. in private market