PnC Commercial Lines

CPP (Commercial Packages Policy) must contain 4 modules

• always has common policy declarations and common policy conditions PLUS (any 2 or more):

  • commercial property

  • commercial auto

  • general liability (CGL)

  • boiler and machinery

  • crime

  • inland marine

  • farm

• subject to premium audit 3 years after policy expires

What completes a commercial package policy?

a cause of loss form

What would you find in the cause of loss form?

exclusions and perils

Commercial Property Forms

• builders risk

• business income

• glass coverage (for businesses with windows)

  • can be standalone policy or part of CPP

• building and personal property

  • unattached signs are considered bus personal property

Builders Risk

insures buildings or structures while under construction

• coinsurance is 100%

• also covers structures, equipment, supplies, and materials within 100 feet

Business Income (covers indirect loss)

insurer pays for loss of business income when operations are suspended bc of direct physical loss

• includes: payroll, continued expenses, net income

Building and Personal Property (BPP Form)

used to insure buildings, business personal property, and the property of others

• personal property of others covers items in the insured’s care, custody, and control

BPP ABC’s

• A- my building (value use ACV)

  • covers more than just building itself; covers building additions, fixtures, equipment, fire extinguishers etc.

• B- my stuff, personal property of ed

  • furniture, merchandise, stock (including stock that was sold but not delivered)

  • **if tenant, cov B applies to improvements and betterments

• C- business personal property of others

  • other people stuff in your care, custody, and control

  • reimbursement goes to item owner

Stock sold but not delivered will be valued based on the:

selling price

BONUS Additional Coverages

• debris removal

• fire dept. charges

Extended Coverages

• up to $250k for newly acquired or constructed property

What is covered under the BPP (this will always be the answer)

light pole

Cause of Loss Forms

basic, broad, special

Vacancy Clause

after 60 days, 5 perils gone, these are no longer covered:

• vandalism

• theft

• water damage (appliances)

• building glass breakage

• sprinkler leakage

*can be bought back with vacancy permit endorsement

Volcanic eruptions and earthquake shocks occurring within ____ hours are considered one earthquake.

168 hours

3 Commercial Auto Coverage Forms**

1. Commercial Auto

2. Truckers

3. Garage

Sections of coverage for all 3 coverage forms

1. covered autos WHAT

2. liability WITH

3. physical damage (opt. for garage: 3. garagekeepers)

Covered Auto Symbols**

Symbols

• 1- “any” auto

• 4- owned auto other than a private passenger

• 7-specifically described auto

  • (i.e. white, ford) make, model, year

• 8- hired “autos” only

  • rented, leased, borrowed

• 9- non-owned “auto”

  • (ex: Domino’s Pizza delivery cars don’t belong to the company by to the individual (employee)

Commercial General Liability

liability: protects ed, covers others

Aggregate Limits:

pay all claims during a policy period

• limit restores annually, all claims pay out from aggregate limit (think bucket of money)

2 Major Aggregate Limits of CGL

1. general aggregate limit

2. products completed operations aggregate limit

**general and products completed are separate limits- a claim applying to one does not affect other (i.e. taking out of general does not affect products completed)

2 Major Sub-lines of CGL

1. premises/operations (under general aggregate)

2. products and completed operations (under products completed aggregate)

Occurrence v. Claims Made Forms

Occurrence

• covers any incident that occurs during policy period, claim can be filed whenever, even after policy cancels

Claims Made

• covers claims only when incident AND claim happen during the policy period, does not cover claims made after policy ends

Difference

• occurrence claims can be filed whenever, claims made claims must be filed before policy ends

BERP (Basic Extended Reporting Periods)

automatically provided to the insured when there are any gaps in coverage for claims-made policy (also included in some claims-made professional liability policies)

• Mini Tail: provides 60 days to file claims after expiration date

• Midi Tail: provides 5 years to report an “occurrence”

CGL ABC’s

• A- BI, PD (i beat you up)

• B- P&A Injury (i call you names)

• C- Medical (i pay your bills)

  • incident must be reported within one year

Boiler and Machinery aka Equipment Breakdown Insurance

• covers direct loss to covered property from breakdown of covered equipment

• majority of premium is used for inspection and loss control services (bc of boiler explosions)

Crime Insurance

• may be written as monoline or part of CPP

• jurisdiction is shared by ISO and Surety Association of America (SAA)

• coverage forms

  • A- Employee Dishonesty

  • C- Theft, disappearance, and dishonesty

Crime Form A- Employee Dishonesty

• actually a bond, a FIDELITY bond (think of connection between infidelity and dishonesty)

• bond has 3 parties:

  • POS

  • Principal- employee

  • Obligee- employer

  • Surety- insurance company

• obligee purchases bond to get protection from principal

Crime Form C- Theft, Disappearance, and Destruction Coverage

• covers theft, so all acts of stealing

• also covers some losses that do not result from theft or attempted theft (disappearance and destruction)

Crime Insurance - Discovery and Loss Sustained Forms*

Discovery Form (before)

• covers losses occurring prior or during the policy period and losses discovered and reported during policy period or up to 60 days after policy expires

Loss Sustained (later)

• covers losses occurring during policy period and discovered and reported for up to 1 year after policy expires

Inland Marine (transportation)

coverage for moveable property, instruments of transportation (roads, bridge), communication (tv, radio station), those in transit + liability exposure of bailees (person receiving goods)

• on an open peril basis

• bailees are also truck drivers bc they are responsible for driving merchandise

Inland Marine Coverage Forms

• valuable papers and records

• equipment dealers

• motor truck cargo

Farm Insurance

combination of personal and commercial lines, provides coverage for both property and liability

Workers Comp 4 types of Benefits

1. medical

2. income

   1. commonly 66 2/3%

3. death

4. rehab

Workers Comp Parts

Parts:

1. workers comp insurance

2. employers liability insurance

   1. $100,000 per worker for disease

   2. $100,000 for BI per accident

   3. $500,000 policy limit for each disease claim within the policy term

3. other states insurance

   1. extends coverage to other states subject to conditions and time limit

4. your duties if inhury occurs

5. premium

6. conditions

Employment Practices Liability

covers discrimination, harassment, unlawful termination

• not included in workers comp

BOP

small to medium businesses under 15,000 and 25,000 ft, under 6 stories  and 60 units, and under $3 Milly in rev

• ineligible are:

  • banks, amusement parks, wholesalers, dealerships

• covers PD, BI, P&A Injury, medical and fire but not employers

• inflation guard increases policy limits by 8% each anniversary date

Flood Insurance NFIP

• max insurance allowed under NFIP is $250k under single family home

• sold by gov and participating private ins companies, but federal gov pays out claims