Property & Casualty Insurance License Exam Tips: Business Owners Policy

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Complete Video Transcript
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when writing a business owners policy
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you will have the following six items included in every policy there may be
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more things but there will never be less than these
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following six items when riding a business owners policy
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and prior to giving you the six items will always appear
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in this paper policy I want you to know that it’s automatically X
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assumed that anything explicitly or specifically excluded in a policy
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well obviously not be covered so instead of saying that for each one just know
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that as I talk about each area coverage
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if there is a specific exclusion it is not covered
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unless it’s specifically excluded and these are the six things that you’ll
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find
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and every businesses owners policy the first one will be building coverage
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were and building coverage
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%uh policy covers the value of appliances the building itself or pieces
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of equipment that are damaged or destroyed
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next after building coverage is personal property coverage
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good
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under this part of the policy your insuring in agreeing to pay the amount
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equal to the value of the businesses property
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or the property up another individual or organization that is in the care
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up the business that either is damaged or destroyed as the result that any
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event
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under the third par this business owners policy would be called an extra expense
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coverage up
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in this part of the policy what you are agreeing to pay is an amount equal to
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the amount that a business will need
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to continue operating at the business can no longer function as the result in
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any event
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obviously not specifically excluded by the policy
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I know if an individual in this case whose business was
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temporarily shut down due to Hurricane the pass through the area
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and this part of the policy covers expenses while I could no longer
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carry on business because the power grid was down and other things like that
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that allowed him to bring his workers back continue to pay them and get them
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sent out to help effect repairs
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in their customers homes as well so this particular part of the policy is
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important
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and help someone carry on their business wanna bet
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makes it possible for them not to be able to function as they normally work
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the next area coverage is liability coverage
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all while
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went to this party the policy
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what we are covering is other legal fees and/or damage is that an insured
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business may incur as a result of the organization’s business activity so they
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are sued
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or they are a ruled against a court case then this part of the
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a business owners policy will cover those expenses
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next is a medical expenses
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people
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and under this part the policy you’re not covering the medical expenses are
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the owner of the business or any employee
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these are expenses that come about because if someone else not associated
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with the business who is either
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Harbor damaged in some way while on the businesses property
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so this is someone who does not live or work with the insured but
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is injured on the businesses property as a result they’re needing medical
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coverage this part the policy covers those medical expenses
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and then finally the last two part
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this policy it’s called supplemental
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liability up
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and this comes in here after
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number four has been used a liability coverage covering legal expenses or
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covering damages
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if the amount legal expenses or damages exceeds what is covered under four the
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number six kicks in with a supplemental about
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to cover the shortfall that was uncovered under four so when writing
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your business owners policies they will always include the six items
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at a minimum with the understanding that it is specifically excluded
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then obviously you don’t pay but everything else is covered from the
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building
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the personal property extra expenses due to
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loss to being able to conduct business liability
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medical expenses for those who are on the property and injured and finally
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supplemental liability