Podcast
Questions and Answers
What type of property is considered commercial property?
What type of property is considered commercial property?
- Any residential property owned by an individual
- Any property used exclusively for personal activities
- Any property owned or used in conjunction with a business (correct)
- Only the stock and inventory of a business
Which of the following is NOT one of the eight perils covered by the Named Perils Form?
Which of the following is NOT one of the eight perils covered by the Named Perils Form?
- Riot
- Smoke due to faulty operation of a stationary furnace
- Impact by land vehicle
- Earthquake damage (correct)
Which of the following is a coverage advantage of the Broad Form (IBC 4037)?
Which of the following is a coverage advantage of the Broad Form (IBC 4037)?
- Covers illegal activities performed by employees
- Covers all types of flooding damage
- Insures against vehicle impact damage regardless of fault (correct)
- Includes damage caused by agricultural smudging
What types of water damage are excluded from the Broad Form coverage?
What types of water damage are excluded from the Broad Form coverage?
What does the Broad Form cover in relation to theft?
What does the Broad Form cover in relation to theft?
Which of the following perils is explicitly excluded from the Broad Form coverage?
Which of the following perils is explicitly excluded from the Broad Form coverage?
Which coverage limits the smoke damage coverage under the Broad Form?
Which coverage limits the smoke damage coverage under the Broad Form?
Why are premiums typically higher for the Broad Form compared to other forms?
Why are premiums typically higher for the Broad Form compared to other forms?
What is the primary function of Business Interruption Insurance?
What is the primary function of Business Interruption Insurance?
Business Interruption Insurance typically does NOT cover losses arising from which of the following?
Business Interruption Insurance typically does NOT cover losses arising from which of the following?
When does coverage for Business Interruption Insurance generally begin?
When does coverage for Business Interruption Insurance generally begin?
Which expenses may be covered by Business Interruption Insurance to reduce the overall loss?
Which expenses may be covered by Business Interruption Insurance to reduce the overall loss?
The coverage period for Business Interruption Insurance usually lasts for how long?
The coverage period for Business Interruption Insurance usually lasts for how long?
What is one condition for receiving benefits from Business Interruption Insurance?
What is one condition for receiving benefits from Business Interruption Insurance?
Under what circumstance would a business still receive benefits from Business Interruption Insurance?
Under what circumstance would a business still receive benefits from Business Interruption Insurance?
What does the Earnings Form in Business Interruption Insurance cover?
What does the Earnings Form in Business Interruption Insurance cover?
Which of the following items are included in the definition of a building?
Which of the following items are included in the definition of a building?
What is considered when adding value to the insurance for extensions to a building?
What is considered when adding value to the insurance for extensions to a building?
Which of the following is NOT included in the definition of building materials?
Which of the following is NOT included in the definition of building materials?
What does the definition of stock encompass?
What does the definition of stock encompass?
Which materials are specifically excluded from the stock definition?
Which materials are specifically excluded from the stock definition?
What must be considered when selecting an insurance limit for items included in the definition of building?
What must be considered when selecting an insurance limit for items included in the definition of building?
Which item would be covered under stock insurance?
Which item would be covered under stock insurance?
Who is legally responsible for damage caused by employees to the property of others?
Who is legally responsible for damage caused by employees to the property of others?
What triggers the stop of income coverage in the profits form?
What triggers the stop of income coverage in the profits form?
Which of the following is true regarding Extra Expense Insurance Endorsement Form (IBC 4027)?
Which of the following is true regarding Extra Expense Insurance Endorsement Form (IBC 4027)?
What type of expenses does the Extra Expense Insurance cover?
What type of expenses does the Extra Expense Insurance cover?
In what situation is the profits form of insurance recommended?
In what situation is the profits form of insurance recommended?
Which statement accurately differentiates Extra Expense Insurance from expenses to reduce loss coverage?
Which statement accurately differentiates Extra Expense Insurance from expenses to reduce loss coverage?
What is NOT covered under Builder's Risk - Broad Form (IBC 4042)?
What is NOT covered under Builder's Risk - Broad Form (IBC 4042)?
When does coverage under the Builder's Risk policy stop?
When does coverage under the Builder's Risk policy stop?
What amount must the insured purchase for Builder's Risk insurance?
What amount must the insured purchase for Builder's Risk insurance?
Which equipment can be covered under a Contractor’s Equipment Floater?
Which equipment can be covered under a Contractor’s Equipment Floater?
Under the Installation Floater, when is property insured?
Under the Installation Floater, when is property insured?
Which of these is included in the coverage of Builder’s Risk - Broad Form?
Which of these is included in the coverage of Builder’s Risk - Broad Form?
What type of coverage does the Contractor’s Equipment Floater provide?
What type of coverage does the Contractor’s Equipment Floater provide?
Which factor does NOT affect the insurance limits during construction?
Which factor does NOT affect the insurance limits during construction?
What is the primary responsibility of occupiers regarding the safety of their property?
What is the primary responsibility of occupiers regarding the safety of their property?
Under what condition is a landlord not liable for injuries or damages caused by rented premises?
Under what condition is a landlord not liable for injuries or damages caused by rented premises?
In which scenario can a landlord be held responsible for damage caused to a tenant's property?
In which scenario can a landlord be held responsible for damage caused to a tenant's property?
What kind of items can make an occupier strictly liable for injuries caused to others?
What kind of items can make an occupier strictly liable for injuries caused to others?
What is presupposed about the condition of furnished rented premises at the outset of tenancy?
What is presupposed about the condition of furnished rented premises at the outset of tenancy?
Which part of a property is a landlord responsible for maintaining when there are multiple tenancies?
Which part of a property is a landlord responsible for maintaining when there are multiple tenancies?
What must landlords do to be held liable for injuries caused by conditions on the rented premises?
What must landlords do to be held liable for injuries caused by conditions on the rented premises?
Which of the following describes the strict liability of occupiers regarding dangerous items?
Which of the following describes the strict liability of occupiers regarding dangerous items?
What is the primary goal of civil law?
What is the primary goal of civil law?
What distinguishes criminal law from civil law?
What distinguishes criminal law from civil law?
In which legal system are laws derived from bills introduced into government bodies?
In which legal system are laws derived from bills introduced into government bodies?
What does the doctrine of precedence in common law establish?
What does the doctrine of precedence in common law establish?
How does statute law interact with common law?
How does statute law interact with common law?
What is one characteristic of criminal law?
What is one characteristic of criminal law?
Which of the following statements is true about the age of majority in Canada?
Which of the following statements is true about the age of majority in Canada?
Which of the following is NOT a characteristic of civil law?
Which of the following is NOT a characteristic of civil law?
What defines a trespasser on someone's premises?
What defines a trespasser on someone's premises?
What duty does an occupier owe to a licensee on their premises?
What duty does an occupier owe to a licensee on their premises?
Who qualifies as an invitee on someone else's land?
Who qualifies as an invitee on someone else's land?
In which of the following situations would a person be classified as a licensee?
In which of the following situations would a person be classified as a licensee?
Which of the following is true about the duties owed by an occupier to a trespasser?
Which of the following is true about the duties owed by an occupier to a trespasser?
What is NOT a requirement for a person to be considered an invitee?
What is NOT a requirement for a person to be considered an invitee?
Which group of individuals is typically NOT categorized as licensees in certain provinces?
Which group of individuals is typically NOT categorized as licensees in certain provinces?
What distinguishes a licensee from a trespasser?
What distinguishes a licensee from a trespasser?
Under what circumstance can an employer be held liable for employee injuries even if workers' compensation applies?
Under what circumstance can an employer be held liable for employee injuries even if workers' compensation applies?
What must be demonstrated for occupiers of property to avoid liability for an independent contractor's negligence?
What must be demonstrated for occupiers of property to avoid liability for an independent contractor's negligence?
What happens to employees' rights when they accept no fault insurance benefits under Workers' Compensation?
What happens to employees' rights when they accept no fault insurance benefits under Workers' Compensation?
What is one circumstance in which employers may have liability despite the existence of Workers' Compensation coverage?
What is one circumstance in which employers may have liability despite the existence of Workers' Compensation coverage?
In what situation can an employee be considered to be 'on a frolic of their own'?
In what situation can an employee be considered to be 'on a frolic of their own'?
Which of the following describes the potential responsibility of occupiers of property regarding independent contractors?
Which of the following describes the potential responsibility of occupiers of property regarding independent contractors?
What type of arrangement is usually necessary for employers to cover risks associated with occupations not under Workers' Compensation?
What type of arrangement is usually necessary for employers to cover risks associated with occupations not under Workers' Compensation?
When can employers delegate their liability to independent contractors?
When can employers delegate their liability to independent contractors?
What legal duty does an occupier owe to invitees in relation to the safety of premises?
What legal duty does an occupier owe to invitees in relation to the safety of premises?
In which provinces are the common law terms for licensee and invitee replaced by the classification of 'visitors'?
In which provinces are the common law terms for licensee and invitee replaced by the classification of 'visitors'?
What is the primary consideration of a legal duty owed to children on premises?
What is the primary consideration of a legal duty owed to children on premises?
Which of the following best describes the term 'attractive nuisance' in relation to children's safety?
Which of the following best describes the term 'attractive nuisance' in relation to children's safety?
What is the primary aim of the Occupiers Liability Act regarding visitors?
What is the primary aim of the Occupiers Liability Act regarding visitors?
What constitutes a visitor under the definition given in the context?
What constitutes a visitor under the definition given in the context?
What type of individuals can also be affected by the conditions of the occupier's premises, according to the content?
What type of individuals can also be affected by the conditions of the occupier's premises, according to the content?
According to common law, what special consideration is given to children regarding property safety?
According to common law, what special consideration is given to children regarding property safety?
Flashcards
Business Interruption Insurance
Business Interruption Insurance
Insurance that covers lost income and expenses when a business is interrupted due to a covered property loss.
Commercial Property Insurance
Commercial Property Insurance
Insurance covering direct damage to business property like buildings, equipment, and stock.
Earnings Form
Earnings Form
Business interruption insurance coverage that pays until the damaged property is repaired or replaced, essentially paying income until the business is back to normal.
Profits Form
Profits Form
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Named Perils Form
Named Perils Form
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Broad Form
Broad Form
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Extra Expense Insurance
Extra Expense Insurance
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Invitee
Invitee
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Occupier's Liability
Occupier's Liability
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Trespasser
Trespasser
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Civil Law
Civil Law
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Study Notes
Business Interruption Insurance Overview
- Commercial property insurance covers direct damage to buildings, stock, and equipment only.
- Large property losses can lead to business closure and income reduction.
- Partial operations may continue at the insured or alternate locations.
Purpose of Business Interruption Insurance
- Functions as a contract of indemnity to restore lost income after a covered loss.
- Provides coverage for ongoing expenses such as salaries, taxes, and mortgage payments.
- Insures against perils listed in the commercial property policy.
- No coverage exists for interruptions caused by perils not covered in the property policy, unless local authorities restrict access.
Coverage Duration and Expenses
- Coverage begins on the day of property loss and may extend for up to 12 months.
- Payments continue beyond the expiration of the commercial property insurance if needed.
- Insured expenses incurred to reduce loss (e.g., temporary relocation) are covered if they indeed decrease the total loss.
Types of Business Interruption Insurance
- Earnings Form: Coverage starts at the time of loss until the property is repaired or replaced.
- Profits Form: Coverage continues until the business income is restored to the expected level, critical for businesses with customer retention concerns.
Common Insurance Forms
- Named Perils Form: Covers specific perils including fire, explosion, vandalism, and windstorm.
- Broad Form (IBC 4037): Insures against all risks of direct physical loss/damage subject to exclusions.
- Higher premiums are associated with Broad Form policies due to wider coverage.
Detailed Definitions
- Commercial Property: Includes all property used in business operations, such as buildings, stock, and equipment.
- Definition of Stock: Covers all merchandise typical to a business and items for packaging/advertising.
Specific Policy Features
- Builder's Risk - Broad Form (IBC 4042): Covers property under construction; excludes contractor tools and certain damage costs.
- Policies must reflect the construction’s completed value to avoid fluctuations in insurance amounts.
Additional Insurance Options
- Contractor’s Equipment Floater: Covers movable equipment owned or rented by contractors.
- Installation Floater: Protects property during transit to installation sites and throughout installation until accepted.
Extra Expense Insurance Endorsement (IBC 4027)
- Covers necessary extra expenses for continuing operations post-interruption.
- Limited to costs above normal operational expenses, without needing to prove loss mitigation.
Key Considerations
- Ensure the chosen limit of insurance covers all definitions and business needs.
- Understanding exclusions, such as flood or sewer backups, is critical for comprehensive coverage.
Property Ownership and Legal Responsibilities
- Occupiers have a legal duty to protect invitees from known dangers and those that can be reasonably discovered, ensuring safety on the premises.
- Common examples of hazards include loose handrails, protruding nails, and unsecured ceiling fixtures.
- In certain provinces (BC, AB, ONT, NS), statutory laws redefine invitees as “visitors” under Occupiers’ Liability Acts, emphasizing a broad duty of care towards all visitors.
- A visitor is defined as anyone entering premises other than trespassers, altering traditional common law understanding.
Duties towards Children
- Common law acknowledges that children lack mature judgment; thus, occupiers must protect them from risks, labeling hazardous properties as "attractive nuisances."
- Occupiers are legally required to maintain a safe environment free from dangers for children.
Responsibilities towards Neighbors and Passers-by
- Occupiers are liable for injuries to neighbors and passers-by caused by their property conditions or activities.
- Responsibilities include maintaining premises to prevent harmful substances (water, sewage) from escaping that might endanger others.
- If occupiers introduce dangerous materials onto their property, they are strictly liable for any injuries caused by their escape.
Landlord Liability
- Landlords are generally not responsible for damage or injuries caused by rented premises unless they have explicitly warranted the premises' safety or concealed known dangers.
- Exceptions exist for furnished rentals, where safety is presumed at the start of tenancy, and in cases where landlords fail to fulfill maintenance obligations after reasonable notice.
Civil Law Overview
- Civil law resolves disputes between individuals and entities, distinct from criminal law, which addresses societal wrongs.
- The primary goal of civil law is to provide compensation for financial losses or damages incurred.
Law Interpretation
- Common law relies on precedents set by previous court decisions, promoting consistency and coherent legal interpretations.
- Statute law, produced by governmental legislative processes, supersedes common law where applicable, impacting definitions of legal age and responsibilities.
Occupiers’ Responsibilities to Invited Persons
- Invitees enter premises by invitation and are involved in activities related to the owner's interests, primarily business-related.
- Occupiers have higher liability towards invitees compared to trespassers and must protect them from both known and hidden dangers.
Employee Liability and Compensation
- Employers face liability concerns for injuries employees suffer while working, primarily covered by Workers’ Compensation Acts that provide no-fault insurance.
- Exceptions to employer liability arise when employees are engaged in activities outside their employment scope or in non-covered occupations.
Independent Contractors
- When occupiers hire independent contractors, they can limit their liability for negligence if they exercised reasonable care in the selection of the contractor and if the work undertaken was appropriate and necessary.
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Description
This quiz covers the essential aspects of Business Interruption Insurance, emphasizing its importance alongside commercial property insurance. Understand how this coverage helps businesses financially during periods of lost income due to property damage. Test your knowledge on endorsements and the implications for business operations.
