Title: Commercial Property Insurance and Risk Management by Trieschmann, Weining, Hedges, Trupin and Flitner (readings in CAS Study Kit)
1Commercial Property Insurance and Risk Management
by Trieschmann, Weining, Hedges, Trupin and
Flitner(readings in CAS Study Kit)
- Chapter
- 1 Property Risk Management
- 3 Building and Personal Property Coverage
- 5 Covered Causes of Loss
- 11 Inland Marine Insurance
- 12 Businessowners Insurance
2Property Risk Management
- Property loss - any loss that a person or
organization sustains as a result of the
damaging, destruction, taking or loss of use or
property in which that person or organization has
a financial interest - Risk Management Process
- 1 - Identify and analyze loss exposures
- 2 - Examine the feasibility of alternative risk
management techniques - 3 - Select the best risk management technique
- 4 - Implement the technique
- 5 - Monitor the program
3Identify and Analyze Loss Exposures
- Property Loss Exposures
- 1 - The item exposed to loss
- Real property
- Personal property
- Valuable information
- 2 - The cause of loss (Exhibit 1-2)
- 3 - The effects of loss
- Reduction in value
- Increased cost to repair or replace
- Loss of revenue
- Extra expense
- Direct loss and indirect loss
-
4Overview of Commercial Property Insurance
- Insurance Advisory Organizations
- Insurance Services Office (ISO)
- American Association of Insurance Services
(AAIS) - Develop and file with state insurance
departments - Policy forms
- Manual rules
- Loss costs
5ISO Commercial Lines Program (1986)
- Commercial property
- Building and contents (on or within 100 of
insured location) - Boiler and machinery
- Commercial crime
- Employee dishonesty, forgery, theft, burglary,
robbery, extortion - Commercial inland marine
- Elements of transportation or communication
- Property in transit, mobile equipment, property
being installed by a contractor, bridges, radio
towers - Farm
- Commercial auto and liability
6Building and Personal Property Coverage Covered
Property
- Building (Exhibit 3-2)
- Your business personal property
- Property owned by the insured
- Furniture and fixtures
- Machinery and equipment
- Stock
- All other personal property owned by you and
used in your business - Property owned by others
- Labor, materials or services furnished on
property of others - Improvements and betterments
- Leased Personal Property
- Personal property of others
- 2500 for property in the care, custody or
control of insured
7Property Not Covered under BPP
- Buildings and other real property
- Land Roadways
- Water Retaining walls
- Bridges Piers
- Plants and outdoor property
- Growing crops and lawns
- Outdoor crops
- Outdoor trees, shrubs and plants
- Outdoor fences
- Outdoor signs, unless attached to buildings
8Property Not Covered - continued
- Other personal property
- Deeds
- Evidence of debt
- Money
- Currency
- Accounts
- Bills
- Securities and notes
- Also, food stamps
- Vehicles, Watercraft, Aircraft
- Animals
- Valuable papers and records
- Property otherwise covered (BPP is excess)
- Contraband
9Building and Personal Property Coverage
- Covered locations
- Described locations and off premises
- Additional coverages
- Debris removal
- Pollutant cleanup and removal
- Preservation of property
- Fire department service charge
-
10Building and Personal Property Coverage
- Coverage Extensions
- Newly acquired or constructed property
- Personal effects and property of others
- Valuable papers and records
- Property off premises
- Outdoor property
- Covered only for fire, lightning,
- explosion, riot or civil commotion or
- aircraft