Commercial Insurance Policies 10 - 0 views

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  #1 Morton Stein on 06 Mar 12

   

  commercial insurance policies, What Type of Insurance Do I Need to Obtain for My Business?
  
  Buildings you own or lease as a part of your business, your business
  personal property, as well as the personal property of others make
  up the basic coverage sections of commercial property insurance.
  Commercial property insurance can be offered separately as
  an individual line policy (known as a monoline policy), or it
  could be offered as part of a Commercial Package Policy (CPP), which will
  includes two or more commercial coverage parts such as commercial
  property, general liability, and commercial auto.
  Building coverage consists of buildings or structures and any completed
  additions, which are outlined on the declarations page of the
  commercial policy. Permanently installed fixtures, machinery, and
  equipment will also be insured as a part of building coverage. The
  limit of insurance coverage is the estimated sum needed to rebuild your
  building as well as replace permanently installed fixtures, machinery,
  and equipment in the case of a total loss. You are required under
  the insurance policy to fully insure the value of your respective structures.
  If a building is not insured to value, you could be subject to a monetary
  penalty at the time of a loss. This penalty is commonly referred
  to as "coinsurance." It is very important to read and understand the
  coinsurance clause of your commercial property policy and to
  go over any concerns with your broker-agent.
  
  Business Personal Property consists of furniture; fixtures, machinery,
  and equipment not permanently installed; inventory; or any other
  personal property owned by and utilized in your business.
  
  Personal Property of Others describes property that's in your
  business's care, custody and control. The sort of business you
  run will determine if you need to safeguard the personal property
  of others.
  
  Covered Causes of Loss
  Whether or not a property loss is covered depends upon the policy
  language, exclusions, and endorsements. Causes of loss will be divided
  into two primary categories: specified perils and open perils.
  
  Specified Perils consist of a list of each peril to be covered against,
  such as fire, explosion, windstorm, vandalism, etc. You can
  usually request basic specified perils or broad specified perils coverage.
  Broad specified perils protection adds to the list of covered
  perils found under basic specified perils.
  
  Open Perils protection includes all losses unless they're specifically
  omitted. Earth movement (including earthquake) and flood are
  two common perils which are omitted under open perils coverage.
  Because open perils coverage provides more comprehensive protection,
  it's more expensive compared to a specified perils policy.
  
  Valuation Types
  Commercial property coverage will incorporate a provision to determine
  exactly what valuation method is to be used to pay the loss. The most
  common policy valuation technique is Actual Cash Value (ACV).
  Unless otherwise described in the policy, ACV is considered to be
  Fair Market Value. There are 2 additional methods
  of property valuation: agreed value and replacement cost. Agreed
  value waives any coinsurance penalty and pays 100% in the stated
  amount (agreed upon amount) for any protected loss. Replacement
  cost covers the amount it takes to replace your property with new
  property of like kind and quality up to the limits of insurance.
  Like ACV, replacement cost is subject to coinsurance.
  
  Coverage Forms and Endorsements
  

   

  <div class="cArrow"> </div><div class="cContentInner"><a href="http://www.mcisinc.us/business_insurance/commercial_insurance.html" rel="nofollow">commercial insurance policies</a>, What Type of Insurance Do I Need to Obtain for My Business?<br /><br />Buildings you own or lease as a part of your business, your business<br />personal property, as well as the personal property of others make<br />up the basic coverage sections of commercial property insurance.<br />Commercial property insurance can be offered separately as<br />an individual line policy (known as a monoline policy), or it<br />could be offered as part of a Commercial Package Policy (CPP), which will<br />includes two or more commercial coverage parts such as commercial<br />property, general liability, and commercial auto.<br />Building coverage consists of buildings or structures and any completed<br />additions, which are outlined on the declarations page of the<br />commercial policy. Permanently installed fixtures, machinery, and<br />equipment will also be insured as a part of building coverage. The<br />limit of insurance coverage is the estimated sum needed to rebuild your<br />building as well as replace permanently installed fixtures, machinery,<br />and equipment in the case of a total loss. You are required under<br />the insurance policy to fully insure the value of your respective structures.<br />If a building is not insured to value, you could be subject to a monetary<br />penalty at the time of a loss. This penalty is commonly referred<br />to as "coinsurance." It is very important to read and understand the<br />coinsurance clause of your commercial property policy and to<br />go over any concerns with your broker-agent.<br /><br />Business Personal Property consists of furniture; fixtures, machinery,<br />and equipment not permanently installed; inventory; or any other<br />personal property owned by and utilized in your business.<br /><br />Personal Property of Others describes property that's in your<br />business's care, custody and control. The sort of business you<br />run will determine if you need to safeguard the personal property<br />of others.<br /><br />Covered Causes of Loss<br />Whether or not a property loss is covered depends upon the policy<br />language, exclusions, and endorsements. Causes of loss will be divided<br />into two primary categories: specified perils and open perils.<br /><br />Specified Perils consist of a list of each peril to be covered against,<br />such as fire, explosion, windstorm, vandalism, etc. You can<br />usually request basic specified perils or broad specified perils coverage.<br />Broad specified perils protection adds to the list of covered<br />perils found under basic specified perils.<br /><br />Open Perils protection includes all losses unless they're specifically<br />omitted. Earth movement (including earthquake) and flood are<br />two common perils which are omitted under open perils coverage.<br />Because open perils coverage provides more comprehensive protection,<br />it's more expensive compared to a specified perils policy.<br /><br />Valuation Types<br />Commercial property coverage will incorporate a provision to determine<br />exactly what valuation method is to be used to pay the loss. The most<br />common policy valuation technique is Actual Cash Value (ACV).<br />Unless otherwise described in the policy, ACV is considered to be<br />Fair Market Value. There are 2 additional methods<br />of property valuation: agreed value and replacement cost. Agreed<br />value waives any coinsurance penalty and pays 100% in the stated<br />amount (agreed upon amount) for any protected loss. Replacement<br />cost covers the amount it takes to replace your property with new<br />property of like kind and quality up to the limits of insurance.<br />Like ACV, replacement cost is subject to coinsurance.<br /><br />Coverage Forms and Endorsements<br /></div>

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