Commercial Property Insurance
- covers direct and indirect losses related to business property
- does not include farms and 1-4 family dwellings
- insures on an ACV basis
- RC is available as an endorsement if the insured meets the coinsurance minimum
What are the 4 sections of a commerc...
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Commercial Property Insurance - answer - covers direct and indirect losses
related to business property
- does not include farms and 1-4 family dwellings
- insures on an ACV basis
- RC is available as an endorsement if the insured meets the coinsurance
minimum
What are the 4 sections of a commercial property policy? - answer dec
page, conditions, coverage forms, and causes of loss forms
Commercial Property: Dec Page - answer name and address of the insured,
property covered, deductible, limits, term, exp. date, coverage forms,
endorsements
Commercial Policy Conditions: Control of Property - answer -protects
property from damage caused by negligent acts of persons other than the
named insured
*A breach in policy conditions only affects the property where the actual
breach occurred
Commercial Policy Conditions: No Benefit to Bailee - answer *bailee: a
Business that holds the property of others for the purpose of storage,
repair, or servicing
- coverage does not apply to a company's property when it is being held or
used by a third party
Specific Commercial Policy Condition: Cancellation/Non-Renewal - answer -
insurer must inform insured 45 days before cancellation
- insurer must offer 30 more days coverage if 45 day notice is not given
,Specific Commercial Property Condition: Legal Action Against Insurer -
answer - insured has 2 years from the date of loss to file a lawsuit
- insured must comply with all policy obligations
In a commercial property policy, an insured building is considered vacant
when? - answer for 60 days, the building is either closed or has less than
31% of its available square footage occupied
Coverage Forms: Building & Personal Property - answer - the basis of all
Commercial Property Policies
• coverage A- buildings and structures
• coverage B- business personal property
• coverage C- personal property of others
Coverage A: buildings and structures - answer - covers buildings and
structures listed on the dec page
Also Included:
• additions
• additions under construction
• any construction equipment within 100ft of insured property
• permanent machinery & equipment inside the building
• maintenance property
Coverage B: Business Personal Property - answer - covers property of the
business that is not affixed to the structure such as:
• labor, services, and materials furnished on the personal property of
others
• inventory or products held for sale
• leased business personal property
• property within 100ft of the business premises
, Coverage C: Personal Property of Others - answer - applies to property
owned by another party when it is in the care of the insured business
• commonly $2500 of coverage
• only applies to the locations listed on the dec page
Commercial Property-Additional Coverages: Debris Removal - answer -
pays to clean up debris of covered property damaged by a covered peril
• limit: 25% of total claim for property damage
• additional $25,000 of coverage is available if:
- property damage plus debris removal exceeds policy limit
- debris removal expense exceeds 25% limit
Commercial Property-Additional Coverages: Pollution Clean- Up and
Removal - answer - pays up to $10,000 for pollution damages caused by a
covered peril
- insured must report the loss within 180 days
Commercial Property-Additional Coverages: Preservation of Property
(Removal Coverage) - answer - applies when the insured removes property
to protect it from a covered peril
Commercial Property-Additional Coverages: Fire Dept. Service Charge -
answer - covers the cost of emergency services when insured is trying to
protect covered property
- limit applies to each premises
- no deductible
Commercial Property-Additional Coverages: Increased Coverage Costs -
answer - applies when the insured has to pay extra in order to conform to
new building ordinances when repairing or replacing a covered loss
• Limit is the smaller of two amounts:
- $10,000 or 5% of coverage A limit
- only applies to buildings insured on RC basis
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