Flashcards in Commercial Package Policy (CH 7) Deck (26):
Commercial Package Policy (CPP)
Commercial insurance that combiners multiple commercial policies into one single policy with a discount, as a package.
When a CPP is issued, it includes the following components:
-Common Declarations page
-At least two coverage parts (different insurance policies)
-Common policy conditions page
CPP: Common Policy Conditions
-Audit by insurer
-Inspection by insurer
-Transfer of rights
Commercial General Liability Policy
Liability coverage for the business, no deductible and can be written for almost any type of business.
Legal liability to others resulting from negligence on the part of the insured or activities the business could be held contingently liable for.
Two types of CGL policies
-Claims made form
Extended Reporting Period
extends the period for reporting claim of loss. Provided if the CGL policy is:
-cancelled or not renewed
-renewed with an advanced retroactive date
-renewed by an occurrence form
also called a claims tail
Basic extended reporting period
also called a "mini tail"
occurrence before the expiration date but not reported before that date, expiring policy will honor the claim if it is reported within the first 60 days beyond the expiration date
supplemental extended reporting period
optional endorsement that can be added to the policy that is expiring, issued from the insurance company one is discontinuing coverage with. It extends the expiring policy for any negotiated length of time.
paid by one time premium that could be as much as 200% of the expiring premium, but must be purchased within the 60-day mini-tail time frame
CGL coverage for Accidents
A- bodily injury (BI) and property damage (PD) claims against the insured.
B- Personal and Advertising Injury Liability
C- Medical Payments to others. typical limit is $5,000 per person.
Coverage A: Defined Occurrences
-Completed Operations Liability
-Fire Legal Liability
Three Cause of Loss forms to choose:
Vandalism, vehicle, volcano
Weight of ice and snow
Water damage due to leaking plumbing
Freezing of pipes
All-risk or open peril- includes Theft
Indirect Loss: Business Income
an endorsement designed to indemnify the loss of business caused by the disruption of normal operations at the insured location as a result of damage from a covered peril.
Indirect Loss: Extra Expense
endorsement that pays for all new expenses during the period of restoration to keep operating or to relocate so the operation can continue.
ex. Moving, new rent, advertising, etc.
special property insurance policy that may or may not be needed by a business.
Two main reasons: money and theft of contents.
Currency, coins, and bank notes in current use and having a face value
Negotiable and non-negotiable instruments or contracts representing either money or other property, including tickets, stamps in current use, and evidences of debt in connection with credit or charge cards other than cards issued by the insured. Securities do not include money.
Property other than Money and Securities
Any tangible property other than money and securities that has intrinsic value
Commercial Inland Marine
"marine" refers to goods in transit. This coverage picks up where commercial property leaves off covering property after it is no longer within 100 feet of the insured premises.
The six Marine categories:
-Instrumentalities or transportation or communication
-Personal Property floater risks
-Commercial property floater risks
virtually any sudden and accidental breakdown of a scheduled object from causes other than normal wear and tear.
an automatic additional coverage for Boiler and Machinery which blanket insures up to $25,000 to expedite necessary repairs.
Also pays for the increased cost of loss and related expenses for Green updates up to 25% of the amount of loss with a $100,000 maximum.
condition included in Equipment breakdown policy that allows the company to send out trained inspectors to inspect the scheduled machines in order to encourage preventative maintenance.