Unit `18 Cram Sheet

What do miscellaneous commercial insurance policies cover

They are specialized policies that cover very unique losses

What is professional liability insurance

Liability insurance that covers the mistakes of professionals whether that be failing to do what they were hired to do, or not performing to the appropriate standards.

What are the 5 types of professional liability

1- Medical Malpractice

2- Errors and Omissions

3- Directors and Officers

4- Fiduciary Liability

5- Consent to Settle Clause

What types of professionals would get Errors and Omissions coverage

insurance agents, attorneys, directors of corporations, etc

What is the consent to settle clause

States that the insurer can settle a claim without the insured’s consent

Liquor Liability Insurance

Liability insurance to cover businesses that sell or serve alcohol.

*Covers bodily injury or property damage caused by contributing to someone’s intoxication

Employment Practicies Liability

Covers the company and employees against claims of inappropriate workplace behavior, failure to promote, wrongful termination, harassment, age discrimination, etc.

*Only policy that covers discrimination

Can liquor liability and / or employment practices liability be covered under a commercial general liability policy

No, the things they cover are specifically excluded under the CGL

What are the 2 basic coverages of Aviation insurance

Physical Damage and Liability

4 things covered with Aviation Liability Insurance

1- legal liability to third parties that were NOT passengers

2- bodily injury to passengers

3- property damage to passengers luggage

4- medical payments, regardless of fault

Another name for Aviation Physical Damage

Hull Coverage

What parts of the aircraft are covered with the Aviation Physical Damage form

The entire aircraft is covered, but NOT the personal effects

What are the 3 choices you have for when the aircraft will be covered with the Aviation Physical Damage Form

1- In the air or on the ground

2- on the ground only

3- not in motion under its own power

*Insured’s choice is specified in the declarations along with the premium

Commercial Umbrella Policy (who uses, requirement, and what it is used for)

Used by businesses that need high limits to cover losses sometimes excluded by other policies or losses in excess of other policy

*MUST have a separate underlying policy to get an umbrella policy

3 times Commercial Umbrella Policy Provides Coverage

1- Policy limits of underlying policy are exhausted

2- Covers losses excluded under the underlying policy

3- Covers loss amount if underlying policy’s aggregate limit was already reached from previous claims.

Differences in Conditions Coverage

Property coverage for catastrophic exposures that fills the gaps that a commercial property coverage form won’t cover

What makes difference in conditions coverage unique

It is designed for coverage against high severity, but low frequency events so it has high deductibles, but no coinsurance requirements

What is covered and excluded with difference in conditions coverage

Most exclusions of other forms are covered; However, everything generally covered by a standard policy is excluded instead

What is the difference between an authorized, nonadmitted insurer and a nonauthorized, nonadmitted insurer

If you are authorized, you are required to have a surplus lines license to sell surplus lines insurance

Who does surplus lines coverage cover

High-risk insureds with risks that regular licensed insurers don’t want to insure

3 conditions of Surplus lines

1- Business must be obtained through licensed surplus lines such as a producer, agent, or broker (regular agent can’t go straight to surplus company)

2- Diligent search must reveal insurance can’t fully be obtained from authorized insurer

3- Coverage cannot be obtained solely to get a better rate

Examples of companies that get surplus lines insurance

Amusement parks, concerts, movie filming companies, auto/boat racers, etc

5 types of internet liability and network protection coverage

1- Website Publishing Liability

2- Network Security Liability

3- Replacement or restoration of electronic data

4- Cyber Extortion

5- Business Income and Extra Expense

Website Publishing Liability

coverage for unintentional error posted to website (ex: copyright infringment)

Network Security Liability

Coverage for unauthorized access to information and unintentional virus transmission

Cyber Extorition

Coverage for extortion expenses/ransom due to virus threats

Business Income and extra expense

Coverage for losses due to interruption of business from virus, malicious instructions, or extortion

Cyber Insurance Coverage

Covers 1st party loss exposures such as loss of revenue, costs to recover/restore systems after a cyberattack, and costs to notify customers of the attack