Risk Point - Hard

• These notes cover key aspects of an insurance policy based on a series of questions and answers.

Terrorism Insurance Surcharge

• The stipulated amount for the terrorism insurance surcharge is not explicitly stated in the policy.

False Pretense Coverage

• The False Pretense coverage limit applies to vehicle theft without forced entry.

Cyber Threats

• Cyber threats are excluded from the policy.

Co-Insurance Clause

• The policy's co-insurance clause reduces the claim amount if the insured is underinsured.

Insured Locations

• Changes regarding insured locations require endorsement by the insurer.

Debris Removal

• Debris removal is covered up to 10% of the property damage claim after a covered loss event.

Claims Reporting

• Claims related to directors and officers must be reported as soon as practicable but no later than 60 days after policy expiration.

Riot or Civil Commotion

• The policy provides limited coverage for damage caused by riots or civil commotion.

Premium Adjustments

• Premium adjustments occur only if there is a significant change in risk, not based on business performance.

Environmental Cleanup Costs

• Environmental cleanup costs are covered with a separate environmental endorsement.

Coverage Extension

• The policy allows for an extension of coverage without additional premium for temporary storage of additional inventory.

Contractual Liabilities

• Contractual liabilities are generally excluded unless specifically endorsed.

Acts of Terrorism

• The policy excludes nuclear, biological, chemical, and radiological attacks from coverage for acts of terrorism.

Actual Cash Value Definition

• "Actual cash value" is defined as replacement cost minus depreciation in the context of property losses.

Business Interruption Coverage

• Business interruption coverage applies if a covered peril causes direct physical damage and the interruption lasts more than 72 hours.

Valuable Papers and Records

• Coverage for valuable papers and records requires a specific endorsement.

Salvage Costs

• Salvage costs are included within the limit of the damaged property.

Insurer's Rights

• In the event of a loss adjustment dispute, the insurer has the right to demand an appraisal, settle the dispute through arbitration, and choose the adjuster.

Mold Damage

• Mold damage is excluded from coverage.

Electronic Data

• Electronic data is excluded unless resulting from a covered peril.

Employee Theft

• Employee theft is excluded from coverage.

Outdoor Signs

• The policy does not cover outdoor signs.

Accounts Receivable

• Losses related to accounts receivable require a special endorsement for coverage.

Newly Acquired Property

• Newly acquired or constructed property is automatically covered for 30 days.

Power Failure

• Losses from power failure are generally excluded.

Personal and Advertising Injury

• A claim related to personal and advertising injury must be filed within 60 days of the policy expiration.

Punitive Damages

• Punitive damages are not covered under the policy.

Inventory Shrinkage

• Inventory shrinkage is considered a normal business loss and is not covered.

Overseas Operations

• Coverage extension to overseas operations is available through a global extension endorsement.

Leased Equipment

• Contractual liability for leased equipment is covered, provided the lease agreement is executed before the loss.

Electronic Media and Records Limits

• The coverage limit for electronic media and records is $5,000 per policy period.

Replacement Cost Definition

• The replacement cost of property is defined as the cost to replace it with new property of similar kind and quality.

Software Malfunctions

• Damage caused by software malfunctions is excluded under all circumstances.

Currency Fluctuation

• Losses due to currency fluctuation are not covered under the policy.

Illegal Acts by Employees

• Illegal acts committed by employees are always excluded from coverage.

Additional Costs

• Additional costs incurred during the repair or replacement of damaged property are covered under the extra expense provision.

Spoilage of Perishable Stock

• Coverage for spoilage of perishable stock requires an additional spoilage endorsement.

Defense Costs

• Defense costs are paid in addition to the limit of liability in the event of a liability claim.

Indemnification

• Indemnification of directors and officers is covered under a separate directors and officers liability endorsement.

Third-Party Property

• Accidental damage to third-party property is covered under the general liability section.