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Questions and Answers
The total amount paid annually by businesses for property insurance in Canada is covered by fire insurance.
The total amount paid annually by businesses for property insurance in Canada is covered by fire insurance.
False
A named perils form covers almost any cause of loss, except those specifically excluded.
A named perils form covers almost any cause of loss, except those specifically excluded.
False
A broad form policy covers losses from almost any cause, except those specifically excluded.
A broad form policy covers losses from almost any cause, except those specifically excluded.
True
Fire is the leading cause of fire claims for businesses.
Fire is the leading cause of fire claims for businesses.
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Arson/set fires are a leading cause of fire losses for businesses, accounting for around 20% of all losses.
Arson/set fires are a leading cause of fire losses for businesses, accounting for around 20% of all losses.
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A declarations page contains crucial details about the policy such as coverage period and insured items.
A declarations page contains crucial details about the policy such as coverage period and insured items.
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Damage from heat and electricity is covered by a fire insurance policy.
Damage from heat and electricity is covered by a fire insurance policy.
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Coverage for temporarily removing property to prevent further fire loss is provided by a fire insurance policy.
Coverage for temporarily removing property to prevent further fire loss is provided by a fire insurance policy.
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Compensation for cleaning up after a fire is capped at a percentage of the loss.
Compensation for cleaning up after a fire is capped at a percentage of the loss.
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Money and vehicles are always covered by a standard fire insurance policy.
Money and vehicles are always covered by a standard fire insurance policy.
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Properties unoccupied for over 30 days are fully covered by a fire insurance policy.
Properties unoccupied for over 30 days are fully covered by a fire insurance policy.
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Specialized pools cover and provide insurance for nuclear incidents for institutions with specific nuclear exposures.
Specialized pools cover and provide insurance for nuclear incidents for institutions with specific nuclear exposures.
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The insuring agreement is a statement that the insurer will pay for the insured perils.
The insuring agreement is a statement that the insurer will pay for the insured perils.
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Explosion coverage provided by insurance policies includes coverage for insured equipment.
Explosion coverage provided by insurance policies includes coverage for insured equipment.
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Portable gas cylinder coverage is offered by fire insurance policies.
Portable gas cylinder coverage is offered by fire insurance policies.
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Coverage for damage from impacts by aircraft or spacecraft (if owned or controlled by the insured) is provided by fire insurance policies.
Coverage for damage from impacts by aircraft or spacecraft (if owned or controlled by the insured) is provided by fire insurance policies.
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Coverage for damage from riots or malicious acts also covers business interruptions due to interior damage caused by said events.
Coverage for damage from riots or malicious acts also covers business interruptions due to interior damage caused by said events.
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Riot/vandalism/malicious acts coverage is an example of a comprehensive coverage policy offering coverage for almost any peril.
Riot/vandalism/malicious acts coverage is an example of a comprehensive coverage policy offering coverage for almost any peril.
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A very comprehensive insurance policy is one which has complete coverage for any peril without any exclusions.
A very comprehensive insurance policy is one which has complete coverage for any peril without any exclusions.
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If a claim is denied by an insurance company, it must provide proof of exclusion if they want to deny the claim.
If a claim is denied by an insurance company, it must provide proof of exclusion if they want to deny the claim.
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Electrical malfunction is a covered peril under a fire insurance policy.
Electrical malfunction is a covered peril under a fire insurance policy.
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The insured may have to pay the full amount of the claim again to the mortgagee if a claim is denied.
The insured may have to pay the full amount of the claim again to the mortgagee if a claim is denied.
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Coverage for costs to rebuild or repair after a loss to comply with municipal bylaws are insured by the insurer.
Coverage for costs to rebuild or repair after a loss to comply with municipal bylaws are insured by the insurer.
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Coverage for loss or damage to insured property from an insured impact by aircraft/spaceship/land vehicle is provided by fire insurance policies.
Coverage for loss or damage to insured property from an insured impact by aircraft/spaceship/land vehicle is provided by fire insurance policies.
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Coverage is provided for riot/vandalism/malicious acts under a fire insurance policy.
Coverage is provided for riot/vandalism/malicious acts under a fire insurance policy.
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Broadening coverage and making policies more competitive is a significant driver for the development of new insurance policies.
Broadening coverage and making policies more competitive is a significant driver for the development of new insurance policies.
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A maximum of $2500 per employee can be claimed under a broad form policy.
A maximum of $2500 per employee can be claimed under a broad form policy.
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A broad form policy is only available for small businesses.
A broad form policy is only available for small businesses.
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The maximum amount payable under a broad form policy is $500 per occurrence.
The maximum amount payable under a broad form policy is $500 per occurrence.
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Detachment coverage is a feature of broad form policies that is designed specifically for smaller businesses.
Detachment coverage is a feature of broad form policies that is designed specifically for smaller businesses.
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Broader coverage in insurance policies helps to eliminate many claims problems.
Broader coverage in insurance policies helps to eliminate many claims problems.
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There are standard package policy forms available in the insurance industry.
There are standard package policy forms available in the insurance industry.
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What is the primary difference between a named perils policy and a broad form policy?
What is the primary difference between a named perils policy and a broad form policy?
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What is the significance of the declarations page in an insurance policy?
What is the significance of the declarations page in an insurance policy?
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What are two advantages of a package policy?
What are two advantages of a package policy?
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Study Notes
Card Front
- Annual Commercial Property Premiums are detailed on a named perils form, including broad-form fire coverage.
- Important coverage details include mechanical/electrical failures, arson/set fires and declarations page.
- Standard exclusions and removal clauses are outlined in fire policies.
- Debris removal, high-risk items, and vacant property exclusions are noted.
- Nuclear risk, explosion, impact, and riot/vandalism/malicious act coverages are included.
- All risks coverage is available.
- Broad Form Policy details are critical, including understanding losses' exact dates.
- The bylaws exclusion summarizes excluded perils, focusing on insured perils on named devices/appliances; a tenant has no need to buy a boiler.
- Internal pressure of 25 psi or greater is covered.
- The coverage provided is for employees locked out.
Card Back
- The total annual amount businesses pay for property insurance in Canada.
- Specific peril insurance policies only cover losses listed in the policy.
- Broad form policies cover almost any loss, excluding explicitly stated conditions.
- Fire incidents are a significant cause of claims (around 20%).
- Another significant fire claim cause involves losses during business operations.
- The declarations page provides crucial policy details like coverage periods.
- Historical fire insurance policies exist.
- Items not covered by fire insurance include damages from heat, electricity, and war.
- Temporary property removal to prevent further fire loss is covered.
- Compensation, capped, is offered for cleaning up after fire damages.
- Some items (money, vehicles) may be excluded from standard fire insurance.
- Unoccupied properties may not be fully covered.
- Policies for nuclear incidents are available for businesses with specific nuclear exposures.
Additional Information
- Specialized pools cover nuclear incidents.
- Protection for explosions exists, but exclusions for insured equipment apply.
- Portable gas cylinders are covered specifically.
- Coverage is available for damage by aircraft, spacecraft (not owned by the insured), riots, or malicious acts, excluding business interruption losses.
- Comprehensive coverage is available, but policy exclusions apply.
- Certain "all risks" coverages may need proof of exclusion by the insurance company. (Important for denial cases).
- Electrical malfunctions are excluded, unless otherwise insured, and in accordance with pertinent by-laws.
- Insurance companies may need to pay the full claim amount to the mortgagee, to protect the information covered by the competition.
- The basis for other policies is explained - loss rebuilding/repair costs in compliance with municipal bylaws are not insured.
- Coverage limitations may apply regarding aircraft impact, aircraft/spacecraft impact, land vehicle impact, riots, and malicious acts.
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Description
This quiz covers the intricacies of annual commercial property premiums, including key provisions and exclusions within various insurance policies. It explores elements such as named perils, broad-form coverage, and the critical details that businesses must understand about their property insurance. Test your knowledge on essential topics affecting coverage and claims.
