Intro to Commercial Lines Flashcards
(32 cards)
What is First-Party Insurance?
Insurance that covers the losses of the person named on the policy (e.g., commercial property insurance).
What is Third-Party Insurance?
Insurance that protects a person against liability for damages or losses they caused to others (e.g., liability insurance).
What does ISO stand for in insurance?
Insurance Services Office, which provides statistical data, policy templates, and rules used widely in property and casualty insurance.
What is Business Personal Property?
Movable property within a building, such as furniture, equipment, and inventory.
What is Inland Marine Insurance?
Covers property in transit or mobile property used off premises, such as tools or goods in transit.
What is a Named Perils Policy?
Covers only the perils specifically listed in the policy, like fire or windstorm.
What is an Open Perils Policy?
Covers all perils unless specifically excluded in the policy language.
What is a Commercial Property Policy?
Insures buildings and business personal property, either with specific or blanket coverage limits.
What is Coinsurance?
Policy condition requiring insured to carry a percentage of property’s value; penalties apply if underinsured.
What is Replacement Cost?
Pays to replace property without deducting for depreciation.
What is Actual Cash Value?
Pays replacement cost minus depreciation.
What is Business Income Coverage?
Covers income loss and ongoing expenses when business operations are interrupted by a covered peril.
What is Crime Insurance?
Covers losses from theft, employee dishonesty, forgery, computer fraud, and similar acts.
What is Mechanical and Electrical Breakdown insurance?
Covers damage from sudden breakdowns of equipment, previously known as Boiler and Machinery policies.
What is a Businessowners Policy (BOP)?
A packaged insurance policy for small businesses covering property and some liability risks.
What does a Flood Policy cover?
Covers flood damage; generally excluded from standard property policies and available via NFIP or private insurers.
What is Premises Exposure?
Liability risk from conditions on the business premises (e.g., slip and fall accidents).
What is Operations Exposure?
Liability from business operations conducted offsite.
What is Completed Operations Exposure?
Liability for negligent work after it’s completed.
What is Employment Exposure?
Liability arising from injury to or treatment of employees.
What is Vicarious Liability?
Liability for the actions of others, such as employees or subcontractors.
What is CGL (Commercial General Liability)?
Covers bodily injury, property damage, and personal/advertising injury.
What does a Commercial Auto Policy cover?
Covers liability and physical damage for vehicles used in business.
What is a Workers Compensation Policy?
Covers medical and wage benefits for employees injured on the job.
