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Building
Coverage:
The purpose of this coverage is
to insure any commercial building or structure that you own whether you
occupy it yourself or you lease it in full or in part to a third party.
Building coverage normally
includes machinery or equipment that is permanently installed which could
include laundry equipment, cooking equipment, and so forth.
Building coverage normally
includes personal property used to maintain the building.
Building coverage may or may
not include fences, outdoor furniture, swimming pools and so forth.
Cause of Loss:
Cause of loss should be written on an all risk
form. Mechanical Breakdown
Coverage and Ordinance of Law Coverage should be included on the policy.
Location:
Building Coverage is limited to locations listed on
the policy. Each building at
any given location must be separately listed on the policy.
Valuation:
The following are different ways a commercial building
could be valued:
Ø
Actual Cash Value
Ø
Replacement Cost
Ø
Guaranteed Replacement
Cost
Ø
Functional Replacement
Cost
Limit:
Most companies offer replacement cost estimators to
help in guessing how much it would actually cost to replace a building at
time of loss. Since you can
only guess it is important to guess high. Having a guaranteed replacement cost endorsement is very
helpful.
Business Personal Property
Coverage:
The basic purpose of this coverage is to insure
inventory, furniture, fixtures, and equipment. That said it is important to understand that each policy
may or may not include many different types of property under this
coverage. There are also a
number of limitations and restrictions on certain types of property. Some of these limitations are picked
up later in this document.
Cause of Loss:
Cause of loss should be written on a special form
bases. There are a number of
policy endorsements that should be included based on the type of business
and the particular exposures the business faces.
Location:
This coverage insures property that is located in a
building that is listed on the policy or within a certain number of feet
from that building.
Valuation:
This coverage should be written on a replacement cost
bases. It is important to note
that replacement cost only applies to certain types of business personal
property. Following are the
different ways to value business personal property:
Ø
Replacement Cost
Ø
Actual Cash Value
Ø
Market Value
Limit:
The limit for business personal property will depend
on many different factors including but not limited to the following:
Ø
What coverage the policy
requires to be insured under business personal property.
Ø
What special
endorsements that are included under the policy.
Ø
What valuation is used.
Seasonal Increase
Coverage:
This is an endorsement that Applied to Business
Personal Property.
Cause of Loss:
The cause of loss follows business personal property
cause of loss.
Location:
This endorsement covers at locations listed on the
policy.
Valuation:
The valuation follows the valuation of business
personal property.
Limit:
This endorsement pays a certain percentage amount over
the limit designated in the policy for business personal property. The purpose of this endorsement is
to cover increased inventory during peak business seasons like Christmas
time and so forth.
It is important to note that this endorsement does not
apply unless the insured can prove that is average month end inventory is
within the limits stated in the policy.
Personal Property of Others
Coverage:
This coverage is to insure personal property of others
that the business may have in its care custody or control. The type of property of others a
business will have varies greatly depending on the type of business. Property of Others Coverage often
is limited to the insured’s legal liability. Some examples of property of others are as follows:
Ø
A repair operation will
have property of others being repaired
Ø
A business may from time
to time rent a piece of equipment to do a special job.
Ø
Photographers often have
property of others they are taking pictures of.
Cause of Loss:
Property of others should be written on a special form
bases.
Location:
Some policies limit coverage to the insured premise
while others may not. Hartford
is a good example of a policy that does not restrict coverage to the
premise, but the policy must have the proper endorsements.
Valuation:
When evaluating coverage for property of others there
are two things to consider:
Ø
The loss to the customer
or owner of the property.
Ø
The loss to the insured
which would include any labor or material furnished prior to the loss.
Some policies will only cover the loss to the owner of
the property but not the insured.
Most policies only cover on an actual cash value bases. Some companies like The Hartford
will cover on a replacement cost bases. C.N.A. covers the owner on an actual cash value bases
and also covers the insured but will not pay more then the replacement cost
value of the property for the total loss.
Limit:
When determining the limit to use make sure you take
into consideration what valuation the company uses and what the largest
loss would be considering costs to the owner of the property and the
insured.
Ordinance of Law
Coverage:
This is a cause of loss endorsement applicable to
buildings.
Cause of Loss:
Policies are written to cover buildings as they stand
before a loss. Since city and
county ordinances are always changing there may be additional costs to
replace the building that are not contemplated in the policy. For this reason Ordinance of Law
coverage should be included in all polices that include building
coverage. The coverage
includes three components:
A.
Un Damaged Part
B.
Demolition and Removal
of Undamaged Part
C.
Increased Cost of
Construction
Location:
This cause of loss is of course limited to buildings
that are listed in the policy.
Valuation:
The valuation for this cause of loss follows the
building coverage valuation.
Limit:
Most policies are endorsed with pre set limits for
this coverage. A frank
discussion should be had with the insured to determine adequate limits.
Theft Damage to Buildings
Coverage:
The purpose of this coverage is to insure damage to a
building that is leased to the insured. This coverage does not pay for damage to glass, glass
lettering, or burglar alarm tape.
Cause of Loss:
The cause of loss is limited to damage to the building
caused by theft or attempted
theft. This only applies if
your lease requires that you pay for this type of damage.
Location:
This only applies to a building that is listed in your
policy.
Valuation:
The policy will pay to repair the damage.
Limit:
Some policies will state a limit while others will
include the limit in business personal property coverage limit.
Other Structures
Coverage:
It is common that a business premise will have more
than one building. Other
Structures coverage insures small other structures at a premise listed on
the policy without having to list the other structure on the policy and pay
an additional premium. The
structure itself would only be insured if the policy included building
coverage. Business Personal
Property would only be insured if the policy covered business personal
property.
Cause of Loss:
The cause of loss would be the same as for the main
building.
Location:
The purpose of this coverage is to insure a “small
structure” or “business personal property in a small structure” that is
located at a premise and next to a building that is listed in the
declaration.
Valuation:
The valuation would be the same as for the main
building.
Limit:
The limit is usually a percentage of the main building
with a maximum dollar amount stated.
Usually it is 10% of the building or personal property limit with a
maximum limit of $50,000.
Tenant Glass Coverage
Coverage:
The purpose of this coverage is to replace damaged
glass, glass lettering, and burglar alarm tape on buildings that are leased
by an insured. It only applies
if the insured has a lease that requires them to pay for this type of
damage.
Cause of Loss:
The cause of loss insures against theft and malicious
mischief and vandalism as the basic policy excludes these causes of loss in
relation to building glass.
Location:
This coverage only applies to the premise and
buildings listed on the policy.
Valuation:
The policy will pay to replace the glass, glass
lettering and burglar alarm tape.
Limit:
The limit is either based on the actual loss or is
included within the business personal property limit, however; some
policies state a maximum limit they will pay for this type of loss.
Glass Coverage
Coverage:
The purpose of this coverage is to insure loss to
building glass if there are no other provisions in the policy to do
so. A good example is a
business that does not have a signed active lease that requires them to
insure glass but may have a verbal agreement with the landlord to do
so. Glass, Glass Lettering,
and burglar alarm tape is covered.
Cause of Loss:
The cause of loss insures against theft, malicious
mischief and vandalism as the basic policy excludes these causes of loss in
relation to Building Glass.
Location:
This coverage only applies to the premise and
buildings listed on the policy.
Valuation:
The policy will pay to replace the glass, glass
lettering and burglar alarm tape.
Limit:
The limit is either based on the actual loss or is
included within the business personal property limit. Some policies due state a maximum
limit they will pay for this type of loss.
Personal Effects:
Coverage:
This coverage is to insure personal property belonging
to the business, business owner, employees, or sometimes customers that is
not related to the business itself.
Coverage could include wallets, purses, coats, umbrellas, and other
personal items. Personal items
such as Christmas decorations stored at the family business would fall
under this coverage.
Cause of Loss:
Cause of Loss should be and usually is written on a
special form bases.
Location:
This coverage is normally limited to a building that
is listed on the declarations or within a certain distance from that
building.
Valuation:
Policies sometimes cover personal effects on a
replacement cost bases but most restrict this coverage to actual cash
value.
Limit:
The limit is usually set in the policy. There are very few if any companies
that allow an increase in specified limits for Personal Effects.
Fine Arts
Coverage:
Fine arts is typically defined as:
Ø
Paintings
Ø
Etchings
Ø
Pictures
Ø
Tapestries
Ø
Art Glass Windows
Ø
Valuable Rugs
Ø
Statuary
Ø
Marbles
Ø
Bronzes
Ø
Antique Furniture
Ø
Rate Books
Ø
Antique Silver
Ø
Porcelains
Ø
Rare Glass
Ø
Bric-A- Brac
Ø
Similar property with
historical value or artistic merit.
Coverage for fine arts may or may not include property
of others. Coverage is usually
not offered to damage caused during the restoration or cleaning of a Fine
Art.
Cause of Loss:
Cause of loss is normally limited to specified causes
of loss unless otherwise endorsed.
Some policy restrict
Cause of Loss to fine arts that are not for sale while others only restrict
coverage for fine arts that are for sale. Some policies of course restrict coverage for all fine
arts.
Location:
Fine Arts coverage is normally restricted to a
building that is listed in the policy, however; other policies will cover
fine arts while at a fair or exhibit within the policy territory.
Valuation:
Valuation of fine arts if
covered is normally based on market value.
Limit:
Typically a policy will specify limits for fine
arts. Some policies allow you
to increase coverage. You have
to make sure you know if the increased limits are in addition to the policy
specified limit. Many times it
is not.
Sign Coverage
Coverage:
This coverage is to insure against damage to or loss
of signs that are attached or not attached to the insured building.
Cause of Loss:
Some policies limit sign coverage to specific causes
of loss unless otherwise endorsed.
Cause of loss can differ based on the sign being attached or not
attached to an insured building.
Location:
Typically signs are covered at a premise that is
listed on the policy.
Valuation:
Signs are typically valued for
the cost of repair
Limit:
Typically limits are set within
the policy or included in the Business Personal Property Limit.
Business Computers
Coverage:
Business Computers also know as Electronic Data
Processing Equipment Consist of the following:
Ø
Hardware:
The computer itself plus any peripheral devices such as printers, scanners,
cabals routers and so
forth. It does not include
copiers, cameras, cutters, manufacturing equipment and so forth.
Ø
Software:
Software refers to computer programs that are used to manipulate data if
the program is stored on a disk or downloaded from other sources.
Ø
Data or Media:
This is information peculiar to your business such as accounting records,
information stored in databases, inventory records, design work for
customers, digital photography and so forth.
Ø
Configuration:
An expense that is often not thought of is the time and material that would
be necessary to re configure and re cable your computer systems after a
loss.
Ø
Computers that are held
for sale are considered stock and are not included in computer coverage
endorsements.
Cause of Loss:
Following are causes of loss that are offered under
different policies all of which should be considered.
Ø
All Risk Bases
Ø
Electrical disturbances
emanating from premise
Ø
Electrical disturbances
emanating from off premise
Ø
Virus
Ø
Hard drive crash
Location:
It is typical of most computer coverage endorsements
to waive the on premise restriction for computers. Some companies even offer world
wide coverage for computers.
Valuation:
Valuation is normally on a replacement cost bases.
Limit:
Be sure to contemplate all the items listed under
computer coverage when determining applicable limits.
Accounts Receivables
Coverage:
The purpose of this coverage is to cover monies owed
to the insured by customers that can not be colleted because of damage to
accounts receivable records.
Cause of Loss:
Usually this coverage is written on an all risk
bases. Most coverage forms for
accounts receivables add back some of the normal policy exclusions such as
damage caused by changes in electrical current.
Location:
Accounts receivable coverage normally applies to
records in a building named on the policy with some restrictions for
coverage In Transit or Off Premise.
Valuation:
The valuation is based on the amount of money that can
not be recovered.
Limit:
The limit should be equal to the most amount of
accounts receivables due for any one month including past due amounts.
Valuable Papers and Records
Coverage:
Valuable papers include and is limited to:
Ø
Documents
Ø
Manuscripts
Ø
Records
Ø
Abstracts
Ø
Books
Ø
Deeds
Ø
Drawings
Ø
Films
Ø
Maps
Ø
Mortgages
Cause of Loss:
This is usually based on a
special form.
Location:
Valuable Papers Coverage most of the time is limited
to a loss that occurs within a building listed in the policy.
Valuation:
Valuation is limited to the cost to replace. It does not provide any monies for
something that can not or is not replaced.
Limit:
The limit of insurance should coincide with the cost
to replace the items not the value of the items.
Business Income and Extra Expense
Coverage:
Business Income and Extra Expense covers three things
as follows:
Ø
Net Income to the
business owner as it is reported on the tax return.
Ø
Any on going business
expense that you incur during the period of restoration including payroll.
Ø
Any Extra Expense
incurred to resume operation as soon as possible.
Cause of Loss:
Cause of louse follows building and business personal
property coverage.
Location:
There must be direct physical damage to property at
your premise that causes a suspension of the operation of your business.
Valuation:
The valuation is based on the
actual expenses incurred and your accounting and tax records.
Limit:
Normally Business Income is based on Actual Loss
Sustained for a period of up to one year.
Business Income Dependant Properties (Anchor Stores
& Major Suppliers)
Coverage:
The purpose of this coverage is to insure against loss
of business income caused from damage to a Dependant Property.
Cause of Loss:
The dependant property must be
damaged by a covered cause of loss.
Location:
The actual location of the dependant property is not
applicable.
Valuation:
The valuation is based on the actual loss sustained.
Limit:
Each policy normally has a designated limit for this
coverage.
Business Income for Off Premise Utility Service
Coverage:
The purpose of this coverage is to insure against loss
of business income caused by damage to a utility service.
Cause of Loss:
The Utility Service must be damaged by a covered cause
of loss.
Location:
The actual location of the
utility service is not applicable.
Valuation:
The valuation is based on the actual loss sustained.
Limit:
Each policy normally has a designated limit for this
coverage.
Web Page
Business Income
Coverage:
The purpose of this coverage is to insure against loss
of business income caused by interruptions in internet services that cause
your web page to be unavailable.
Cause of Loss:
The internet service interruption must be caused by
direct physical loss. of your vendor.
Location:
The loss must occur at your premise or the premise of
your service provider.
Valuation:
The valuation is based on the actual loss sustained.
Limit:
Each policy normally has a designated limit for this
coverage.
Extended Business Income
Coverage:
This coverage extends business income coverage for a
set amount of time after your business has been restored.
Cause of Loss:
Not Applicable
Location:
Not Applicable
Valuation:
Valuations is based on the difference between what you
make and what you would have made if your business had not been damaged.
Limit:
Most policies set a specific time frame for this
coverage and pay on an actual loss sustained bases for that time period.
Backup of Sewer or Drain
Water Damage
Coverage:
This is a cause of loss addition pertaining to
Building and Business Personal Property Coverage.
Cause of Loss:
The purpose of this cause of loss is to insure damage
caused by the backing up of water through a sewer or drain that is not
caused by flood. It covers the
damage caused. It does not pay
the plumber to unclog the drain.
Location:
This coverage pertains to
buildings listed in the policy.
Valuation:
The valuation is based on the cost to repair or
replace the damaged property.
It follows the policy valuation clauses.
Limit:
The policy usually lists a specified limit for this
coverage.
Money and Securities
Coverage:
The purpose of this coverage is to insure against loss
of money, checks, and money orders.
Cause of Loss:
Coverage is normally written on a special form
bases. The exclusion for
mysterious disappearance is usually deleted for this coverage.
Location:
Coverage is not limited to a particular location.
Valuation:
Valuation is based on the
amount of money lost and not recoverable.
Limit:
There are separate limits for within the insured
premise and outside of the insured premise.
Forgery
Coverage:
The purpose of this coverage is to protect against
loss caused by the signing or falsifying of financial documents. A few policies are quit broad in
coverage while others limit coverage to specific financial instruments such
as checks and money orders.
Cause of Loss:
Cause of loss is specific to
alteration or signatures.
Location:
Location is not applicable to this coverage.
Valuation:
Valuation is based on the amount that you lost and are
not able to recover..
Limit:
The policy usually contains a specified limit for this
coverage.
Computer
Fraud
Coverage:
This is a covered cause of loss relevant to business
personal property, money, and securities.
Cause of Loss:
The fraudulent transfer or ordering for the transfer
of business personal property, money, and securities via the internet.
Location:
The property must be transferred from your premise or
banking institution.
Valuation:
Valuation is normally on a replacement cost bases.
Limit:
The policy normally has a specified limit that you may
or may not be able to increase.
Employee
Dishonesty
Coverage:
This coverage buys back the employee theft
exclusion. Coverage includes
theft of personal property and money and securities of the insured or
others in the care custody and control of the insured. It also covers forgery committed by
employees.
Cause of Loss:
The cause of loss is dishonest acts of an employee.
Location:
Location is not applicable to this coverage.
Valuation:
Valuation should be written on a replacement cost
bases.
Limit:
A specific limit is usually designated in the policy
with options to increase the limits.
Temperature Change
Coverage:
The purpose of this coverage is insure against loss to
perishable goods.
Cause of Loss:
The loss must be caused by a change in temperature in
a cooling system. Many
policies only cover if the change of temperature is caused by a covered
cause of loss other than mechanical breakdown.
Location:
This coverage applies to buildings listed on the
policy.
Valuation:
This coverage is normally
settled on a replacement cost bases.
Limit:
Most policies have a specified limit that can be
increased.
Mechanical Breakdown Coverage
Coverage:
Mechanical breakdown is a cause of loss add in that
protects buildings and business personal property.
Cause of Loss:
Mechanical breakdown may cover loss due to the
following things:
Ø
Explosion of steam
boilers
Ø
Damage caused by
centrifugal force
Ø
Sudden and Accidental
breakdown of equipment
Ø
Fluctuation in
electrical current emanating from the premise
Ø
Damage caused by the
leakage of refrigeration chemicals such as ammonia
Location:
This coverage is specific to buildings listed in the
policy.
Valuation:
Valuation should be on a replacement cost bases.
Limit:
Following are some different ways that limits are
defined in the policy:
Ø
A specified limit they
you may or may not be able to increase.
Ø
Limit follows policy
limits for building and business personal property.
Off Premise Utility Service Direct Damage
Coverage:
This is a cause of loss add on
for buildings and business personal property.
Cause of Loss:
The purpose of this coverage is to insure against loss
caused by fluctuation in electrical current that is caused by damage to a
utility service. The damage
must be caused by a covered cause of loss.
Location:
The utility service must be located away from insured
premise.
Valuation:
Damage is usually covered on a repair or replacement
cost bases.
Limit:
Typically each policy has a specified limit that can
be increased.
Property at Other Premise You Own, Lease, or Occupy
Coverage:
It is quite common for business owners to store
business personal property at their place of residence or at a storage
facility. Because each of
these locations are owned, leased, or occupied they have to be listed on
the policy in order for coverage to be effected. Many times business owners fail to list these types of
locations on their policy.
Some policies offer a specific limit of coverage for business
personal property at a location you own, rent, lease, or occupied that is
not listed on the policy.
Cause of Loss:
The cause of loss would be the same as for a location
listed on the policy.
Location:
This coverage is for a location you own, lease, rent
or occupy that is not listed on the policy.
Valuation:
The Valuation would be the same as for a location
listed on the policy.
Limit:
The policy would contain a specific limit for this
coverage.
Property Off Premise
Coverage:
The purpose of this coverage is to insure your
business personal property and personal property of others that is in your
care custody or control while it is located at a premise you do not own,
lease, rent, or occupy. Many
times this coverage includes property in transit and or property in public
transit.
Cause of Loss:
Cause of loss is normally written on a special form
bases.
Location:
The property must be located at a premise you do not
own, lease, rent, or occupy or at a fair or exhibit.
Valuation:
Valuation is normally written on a replacement cost
bases.
Limit:
A limit is normally specified in the policy with
options to increase.
Property in Private
Transit
Coverage:
The purpose of this coverage is to insure your
business personal property and personal property of others that is in your
care custody or control while it is being transported in a vehicle that is
owned or operated by the business owner or employee of the business.
Cause of Loss:
Cause of loss is normally written on a special form
bases.
Location:
Location is not applicable.
Valuation:
Valuation is normally written on a replacement cost
bases.
Limit:
A limit is normally specified in the policy with
options to increase.
Property in Public Transit
Coverage:
The purpose of this coverage is to insure your
business personal property and personal property of others that is in your
care custody or control while it is being transported by Fed EX, UPS, or
any other public transportation business. Please keep in mind that many polices exclude US Postal
Service.
Cause of Loss:
Cause of loss is normally written on a special form
bases.
Location:
Location is not applicable.
Valuation:
Valuation is normally written on a replacement cost
bases.
Limit:
A limit is normally specified in the policy with
options to increase.
World Wide Laptop Coverage
Coverage:
The purpose of this coverage is to protect laptop
computers anywhere in the world.
Cause of Loss:
Cause of loss is usually written on a special form
bases.
Location:
Location is not applicable.
Valuation:
Valuation is normally on a replacement cost bases.
Limit:
The policy normally has a specific limit for this
coverage.
Salespersons Samples
Coverage:
The purpose of this coverage is to add back a
limitation in the policy that excludes coverage for salespersons samples.
Cause of Loss:
Cause of Loss is usually written on an all risk bases.
Location:
Location is not applicable.
Valuation:
Valuations is normally written on a replacement cost
bases.
Limit:
The policy normally specifies a limit for this
coverage.
Premise and Operations Liability
Premise Coverage:
The purpose of this coverage is to insure for an
occurrence that happens at the insured premise listed in the policy. Some examples are as follows:
Ø
A customer trips on a
parking block coming into the insured’s store.
Ø
A customer is hit on the
head when a paint bucket falls off a shelf.
Ø
A burglar is bit by the
insured’s guard dog while breaking into the premise.
Ø
A customer slips and
falls while shopping at the insured’s store.
Operations Coverage:
The purpose of this coverage is to insure for an
occurrence that happens because of the operations of the insured business
away from the premise listed in the declarations. Some examples are as follows:
Ø
A person trips over an
insured’s camera equipment while the insured is taking pictures at a wedding.
Ø
A contractor drills a
hole through a water pipe while doing electrical work at a customers home.
Ø
A florist knocks over an
expensive lamp while delivering flowers to a funeral home.
Ø
A person trips over an
insured’s display at a fair or exhibit.
Coverage Triggers:
Ø
Bodily Injury
Ø
Property Damage
Limits:
Ø
Per Occurrence Limit:
The most amount paid out for any one
occurrence.
Ø
Aggregate Limit:
The most paid out in any one policy year.
Products and Completed Operations Liability
Products Coverage:
The purpose of this coverage is to insure for an
occurrence that happens from the product of the insured. Some examples are as follows:
Ø
A candle purchased from
an insured emits a spark that burns the customers house down.
Ø
A can of paint leaks
onto the insured’s car on the way home from the store.
Ø
A person gets hurt
sitting in a chair purchased from an insured.
Ø
A battery purchased from
an insured leaks acid into someone’s mouth.
Completed Operations Coverage:
The purpose of this coverage is to insure for an occurrence
that happens because of the completed operations of the insured
business. Some examples are as
follows:
Ø
The insured installed an
ice machine that starts leaking the day after the insured installed it.
Ø
The insured put the
drain pipe for a water cooler in a vent pipe that was no longer attached to
anything. Water from the
cooler drain caused damaged to the customers wall.
Ø
An insured installed
some shelving for a customer that did not hold up. The customers personal property was
damaged when the shelf broke.
Ø
In the above example the
customer was injured when the personal property fell off the shelve and
onto their head.
Coverage Triggers:
Ø
Bodily Injury
Ø
Property Damage
Limits:
Ø
Per Occurrence Limit
The most amount that will be paid out for
any one occurrence.
Ø
Aggregate Limit
The most amount that will be paid out in
any one policy year.
Personal Injury Liability
Coverage:
The purpose of this coverage is to insure for certain
occurrences caused by other than bodily injury or property damage.
Coverage Triggers:
Ø
False Arrest
Ø
False Detention
Ø
False Imprisonment
Ø
Malicious Prosecution
Ø
Wrongful Eviction
Ø
Wrongful Entry
Ø
Discrimination (Hartford
Only)
Ø
Humiliation (Hartford
Only)
Limits:
Ø
Per Occurrence
The most amount paid out for any one
occurrence.
Ø
Aggregate
The most amount paid out in any one policy
year.
Advertising Liability
Coverage:
The purpose of this coverage is to insure against
occurrences that happens due to a business advertising its own
product. Advertising Liability
does not cover advertising for others.
Coverage Triggers:
Ø
Oral or written
publication of material that slanders or libels a person or organization.
Ø
Oral or written
publication of material that disparages a person’s or organization’s goods,
products or services.
Ø
Oral or written
publication of material that violates a person’s rights of privacy.
Ø
Copying, in your
advertisement, a person’s or organization’s advertising idea or style of
advertisement.
Ø
Infringement of
copyright, slogan, or title of any literary or artistic work in your
advertisement.
Limits:
Ø
Per Occurrence Limit
The most amount paid out for any one
occurrence.
Ø
Aggregate:
The most paid out in any one policy year.
Web Page
Advertising
Coverage:
The purpose of this coverage is to insure against
occurrences that happens due to a business advertising its own product on a
web page. Web Page Advertising
Liability does not cover advertising for others.
Some policies include Web Page Advertising Liability
under Advertising Liability while others write it as a separate coverage,
or optional coverage.
Coverage Triggers:
Ø
Web publication of
material that slanders or libels a person or organization.
Ø
Web publication of
material that disparages a person’s or organization’s goods, products or
services.
Ø
Web publication of material
that violates a person’s rights of privacy.
Ø
Copying, in your
advertisement, a person’s or organization’s advertising idea or style of
advertisement on a web page.
Ø
Infringement of
copyright, slogan, or title of any literary or artistic work in your
advertisement on a web page.
Limits:
Ø
Per Occurrence Limit
The most amount paid out for any one
occurrence.
Ø
Aggregate:
The most paid out in any one policy year.
Liquor
Liability
Coverage:
The purpose of this coverage is to insure against
suits brought about on the grounds that you participated in the
intoxication of a person by selling them liquor.
Coverage Triggers:
Ø
Bodily Injury
Ø
Property Damage
Limits:
Ø
Per Occurrence Limit
The most amount paid out for any one
occurrence.
Ø
Aggregate:
The most paid out in any one policy year.
Medical
Payments
Coverage:
The purpose of this coverage is to insure against the
consequence of a person getting hurt at your premise. Medical Payments covers without
regard to negligence. It is
important to understand that medical payments apply to the premise only.
Coverage Triggers:
Ø
Bodily Injury sustained
by a third party at a premise listed on the policy.
Limit:
The policy usually specifies a limit for medical
payments. On occasion you may
have more than one options for the medical payments limit.
Fire Legal
Liability
Coverage:
The purpose of this coverage is to insure against law
suits brought about due to you accidentally burning down or blowing up a
building you rent or lease from a third party.
Coverage Triggers:
Ø
Fire
Ø
Explosion
Limits:
Ø
Per Occurrence Limit
The most amount paid out for any one
occurrence.
Ø
Aggregate:
The most paid out in any one policy year.
Water Legal
Liability
Coverage:
The purpose of this coverage is to insure against law
suits brought about due to you accidentally causing water damage to a
building you rent or lease.
Coverage Triggers:
Ø
Water damage caused by
the insured.
Limits:
Ø
Per Occurrence Limit
The most amount paid out for any one
occurrence.
Ø
Aggregate:
The most paid out in any one policy year.
Tenant Legal
Liability
Coverage:
The purpose of this coverage is to extend fire legal
liability to cover any type of direct physical loss to a building rented or
leased to the insured caused by the negligence of the insured.
Coverage Triggers:
Ø
Direct physical loss
caused by the insured.
Limits:
Ø
Per Occurrence Limit
The most amount paid out for any one
occurrence.
Ø
Aggregate:
The most paid out in any one policy year.
Employee Non
Owned and Hired Auto
Coverage:
The purpose of this coverage is to protect the insured
from any law suits that are generated due to an accident involving an
employee of the company driving their own car while on company
business. This coverage
typically does not apply to seasonal or temporary employees.
Coverage Triggers:
Ø
Employee being involved
in an auto accident.
Limits:
Ø
Per Occurrence Limit
The most amount paid out for any one
occurrence.
Ø
Aggregate:
The most paid out in any one policy year.
Employee
Benefits Liability
Coverage:
The purpose of this coverage is protect the insured
against errors made in the administration of an employee benefit program
such as group health, group life, retirement programs and so forth. It can also include the
requirements of an ERISA plan.
This coverage is usually written on a claims made form.
Coverage Triggers:
An employee legally qualifying for benefits that he is
unable to receive due to the insured’s lack of properly administering the
program.
Limits:
Ø
Per Occurrence Limit
The most amount paid out for any one occurrence.
Ø
Aggregate:
The most paid out in any one policy year.
Employment
Related Practices Liability
Coverage:
This coverage is to protect the insured against law
suits filed by employees for wrongful employment practices. This coverage is usually written on
a claims made bases. Some
policies are for legal expense only while others pay both defense costs and
judgments. Legal costs are
normally part of the policy limit.
Coverage Triggers:
Coverage triggers are listed specifically in the
policy. Some examples are:
Ø
Wrongful termination
Ø
Sexual Harassment
Ø
Discrimination
Limit:
Ø
Per Occurrence Limit
The most amount paid out for any one
occurrence.
Ø
Aggregate:
The most paid out in any one policy year.
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