0:01
this conference will now be recorded all right welcome
0:06
all right today's webinar we're going to talk about commercial coverage parts i call them
coverage parts periodically
0:13
since your test goes a little crazy with that thesaurus they call it modules all right so commercial
coverage parts
0:19
are commercial coverage modulars um buying one coverage one coverage part is
0:24
a monoline policy buying two or more would be a package or
0:30
modular policy you might see on your exam okay
0:35
so these are the different coverage parts that you can get on your commercial package policy
0:42
typically we start off with property coverage if you own a building you definitely want coverage
for it uh instead of saying theft coverage in
0:49
the business world we call it crime coverage now very similar to the theft associated with your
home policy except
0:55
this is with a business you have liability associated with your home or your dwelling
1:01
and it's optional on the dwelling it's also optional for a business and it's called general liability
you might see
1:06
it as general liability gl or cgl commercial general liability
1:13
instead of calling it floaters on the personal side we called inland marine coverage for business
1:18
for higher ticket items you know maybe you're a construction company you have heavy
machinery that's kind of what
1:24
we're talking about mobile equipment or even in a factory or warehouse we're using forklifts now
these are vehicles
1:32
that are typically not on the street not on the freeway i should say um or high
1:37
ticket like theft of ju i'm sorry jewelry coverage okay your commercial property policy covers
1:43
,jewelry up to a certain limit but if you have higher value jewelry then you might want to get in the
marine coverage to
1:48
increase the coverage on the jewelry that's being sold but it can also cover customers jewelry
1:55
under your care custody and control so uh we'll go into that a little bit
2:00
boiler machinery we kind of want to view this like a home warranty you know when you buy a
house you buy that home
2:06
warranty where if any of your appliances break down you pay a deductible and someone comes
out there to fix it
2:12
kind of for a business except for boiler machinery or sometimes you'll see it as equipment
breakdown coverage
2:20
most of your premium will go towards inspections to prevent loss
2:25
auto either we're in the automobile related industry like a repair shop maybe a dealership or
we're using autos
2:32
in the course of our business maybe you provide company cars for your executives or maybe
you have a fleet of trucks
2:40
that you want to insure and that's another thing we'll look at and farm is kind of its own little
2:46
package program it is under the commercial category but farm is a blend of residential and
2:52
commercial on one program not only do you live there you also work there and so it does have
both parts on one uh
3:00
program okay so these are the modules you do want to be familiar with it okay
3:06
we're going to start with commercial property coverage so let's say you own a building and
3:11
if it's larger than a business owner policy remember your business owner policy can cover a
building up to six
3:16
stories high up to a hundred thousand square feet and no more than three million in annual
sales so if it's
3:23
larger than that right then you need to go to commercial property coverage and
3:28
that's what we're going to start off with in getting into the modules you have to
,3:33
know the parts of a policy you're going to see this on the purse line side and also on the
commercial line side
3:40
we have the d-i-c-e dice okay declaration page it's the first page of
3:46
the policy it basically tells you who the insurance company is who is the insured uh beginning
date ending date of
3:53
the policy um and kind of what type of policy it is all right and going along with what type
4:00
of policy it is that's kind of the insuring clause it tells you the type of kind of policy usually it's part
of the
4:06
declaration page okay or it could be the second page but it's just insurance clause just
4:11
tells you what type of policy you bought conditions clause spells out the duties
4:17
and rights of both parties it basically says this is what you need to do in order to collect from this
policy that's
4:23
how you want to understand it sometimes on your exam question it'll be um it'll state that it
spells out the obligations
4:31
of each party basically which are obligated to do in order to collect and if a loss occurs what the
insurance
4:38
company is obligated to do and that's kind of the conditions clause
4:43
you might see conditions agreement just like insuring clause you might see insuring agreement
on the test right so
4:50
the same thing i mean they just word it differently just kind of throw you off
4:55
exclusions are real simple it's just going to tell you what the policy will not cover
5:00
always think of catastrophic exposures typically not covered intentional acts and wear and tear
are also typically not
5:08
covered two other areas associated with that policy you typically do have a definition section in
the policy because
5:15
yeah we can look at earthquake or flood um and and we can
5:20
, google the definition and it'll give us a definition but we want to look at the definitions that
5:27
this policy um has because even though there's a general definition we have to look at how this
5:34
policy defines this particular situation or item to know how the policy
5:39
covers it or doesn't cover it all right so um keep in mind with that
5:45
um and then we have endorsements now endorsements are optional additional charge for
additional features and
5:50
benefits it helps you to personalize the policy to cater to your specific business
5:55
that's how you want to understand that we have common policy conditions now
6:02
these are in each section each coverage part of a commercial policy so you do want to
understand these conditions
6:08
the first one is cancellation right who may cancel the policy and you need to know that it's the
first
6:15
named insured so if it's a partnership
6:20
bill and bob you know uh maybe they have a hotel um who may cancel the policy well if
6:26
it's bill and bob's hotel bill is the first one name so bill has the
6:32
ability to cancel the policy they're the first named insured changes who can request changes to
this
6:38
policy again first named insured so going back to bill and bob's hotel bill
6:45
is the first one named bill can cancel the policy bill can request changes to the policy that's how
you want to
6:50
understand it examination of your books and records condition means the insurance company
6:56
can examine your company's books and records during the policy period and for up to three
years after coverage ends
7:04
okay so that's how you want to understand that um statute limitations in most cases ends in
three years um so
7:11
yeah the insurance company must be able to go back in time to when the loss actually
this conference will now be recorded all right welcome
0:06
all right today's webinar we're going to talk about commercial coverage parts i call them
coverage parts periodically
0:13
since your test goes a little crazy with that thesaurus they call it modules all right so commercial
coverage parts
0:19
are commercial coverage modulars um buying one coverage one coverage part is
0:24
a monoline policy buying two or more would be a package or
0:30
modular policy you might see on your exam okay
0:35
so these are the different coverage parts that you can get on your commercial package policy
0:42
typically we start off with property coverage if you own a building you definitely want coverage
for it uh instead of saying theft coverage in
0:49
the business world we call it crime coverage now very similar to the theft associated with your
home policy except
0:55
this is with a business you have liability associated with your home or your dwelling
1:01
and it's optional on the dwelling it's also optional for a business and it's called general liability
you might see
1:06
it as general liability gl or cgl commercial general liability
1:13
instead of calling it floaters on the personal side we called inland marine coverage for business
1:18
for higher ticket items you know maybe you're a construction company you have heavy
machinery that's kind of what
1:24
we're talking about mobile equipment or even in a factory or warehouse we're using forklifts now
these are vehicles
1:32
that are typically not on the street not on the freeway i should say um or high
1:37
ticket like theft of ju i'm sorry jewelry coverage okay your commercial property policy covers
1:43
,jewelry up to a certain limit but if you have higher value jewelry then you might want to get in the
marine coverage to
1:48
increase the coverage on the jewelry that's being sold but it can also cover customers jewelry
1:55
under your care custody and control so uh we'll go into that a little bit
2:00
boiler machinery we kind of want to view this like a home warranty you know when you buy a
house you buy that home
2:06
warranty where if any of your appliances break down you pay a deductible and someone comes
out there to fix it
2:12
kind of for a business except for boiler machinery or sometimes you'll see it as equipment
breakdown coverage
2:20
most of your premium will go towards inspections to prevent loss
2:25
auto either we're in the automobile related industry like a repair shop maybe a dealership or
we're using autos
2:32
in the course of our business maybe you provide company cars for your executives or maybe
you have a fleet of trucks
2:40
that you want to insure and that's another thing we'll look at and farm is kind of its own little
2:46
package program it is under the commercial category but farm is a blend of residential and
2:52
commercial on one program not only do you live there you also work there and so it does have
both parts on one uh
3:00
program okay so these are the modules you do want to be familiar with it okay
3:06
we're going to start with commercial property coverage so let's say you own a building and
3:11
if it's larger than a business owner policy remember your business owner policy can cover a
building up to six
3:16
stories high up to a hundred thousand square feet and no more than three million in annual
sales so if it's
3:23
larger than that right then you need to go to commercial property coverage and
3:28
that's what we're going to start off with in getting into the modules you have to
,3:33
know the parts of a policy you're going to see this on the purse line side and also on the
commercial line side
3:40
we have the d-i-c-e dice okay declaration page it's the first page of
3:46
the policy it basically tells you who the insurance company is who is the insured uh beginning
date ending date of
3:53
the policy um and kind of what type of policy it is all right and going along with what type
4:00
of policy it is that's kind of the insuring clause it tells you the type of kind of policy usually it's part
of the
4:06
declaration page okay or it could be the second page but it's just insurance clause just
4:11
tells you what type of policy you bought conditions clause spells out the duties
4:17
and rights of both parties it basically says this is what you need to do in order to collect from this
policy that's
4:23
how you want to understand it sometimes on your exam question it'll be um it'll state that it
spells out the obligations
4:31
of each party basically which are obligated to do in order to collect and if a loss occurs what the
insurance
4:38
company is obligated to do and that's kind of the conditions clause
4:43
you might see conditions agreement just like insuring clause you might see insuring agreement
on the test right so
4:50
the same thing i mean they just word it differently just kind of throw you off
4:55
exclusions are real simple it's just going to tell you what the policy will not cover
5:00
always think of catastrophic exposures typically not covered intentional acts and wear and tear
are also typically not
5:08
covered two other areas associated with that policy you typically do have a definition section in
the policy because
5:15
yeah we can look at earthquake or flood um and and we can
5:20
, google the definition and it'll give us a definition but we want to look at the definitions that
5:27
this policy um has because even though there's a general definition we have to look at how this
5:34
policy defines this particular situation or item to know how the policy
5:39
covers it or doesn't cover it all right so um keep in mind with that
5:45
um and then we have endorsements now endorsements are optional additional charge for
additional features and
5:50
benefits it helps you to personalize the policy to cater to your specific business
5:55
that's how you want to understand that we have common policy conditions now
6:02
these are in each section each coverage part of a commercial policy so you do want to
understand these conditions
6:08
the first one is cancellation right who may cancel the policy and you need to know that it's the
first
6:15
named insured so if it's a partnership
6:20
bill and bob you know uh maybe they have a hotel um who may cancel the policy well if
6:26
it's bill and bob's hotel bill is the first one name so bill has the
6:32
ability to cancel the policy they're the first named insured changes who can request changes to
this
6:38
policy again first named insured so going back to bill and bob's hotel bill
6:45
is the first one named bill can cancel the policy bill can request changes to the policy that's how
you want to
6:50
understand it examination of your books and records condition means the insurance company
6:56
can examine your company's books and records during the policy period and for up to three
years after coverage ends
7:04
okay so that's how you want to understand that um statute limitations in most cases ends in
three years um so
7:11
yeah the insurance company must be able to go back in time to when the loss actually
