In this standalone mini-course we will cover Building By-Law Endorsement, Stock Spoilage, Mortgage Rate Guarantee, and Floater Policies. There is also a full webinar recording and recap highlights to help consolidate your learning.
DOWNLOADS
- Commercial Endorsements and Floaters Presentation [PDF 1.7 Mb]
COMMERCIAL ENDORSEMENTS AND FLOATERS PRESENTATION
Use the buttons above to progress through this 35 slide presentation. No speakers/headphones required.
This is a two hour webinar replay with sound. Please have your speakers on, the fun starts at 13 minutes, enjoy!
HIGHLIGHT RECAP
Building By-Laws
When a building was built, it met the bylaws of the time but these bylaws may have changed. When there is a partial loss to a building, municipal ordinances may require that you comply with new codes – such as building with different materials, incorporating underground parking, including sprinkler systems, or adding wheelchair ramps. These requirements can turn a small loss into a devastating one because most insurance contracts exclude coverage for losses arising from bylaws or other ordinances affecting repair or reconstruction of a damaged building. If municipal authorities demand that an owner tear down the undamaged portion of a building before rebuilding, or that reconstruction can only take place if, for instance the building is equipped with a sprinkler system, then the owner will be out of pocket for the differences in cost which are not covered by their insurance policy.
Demolition
Owner responsible for demolition cost – which can be substantial.
Arisings Removal
The owner is also responsible for costs involving the removal of demolition debris.
Materials
If materials are specified to meet new standards, the owner is responsible for these costs.
Installation Floater
Material In Transit
This floater covers ...
Term
Coverage Includes...
Coverage Ceases When...
RATING AND UNDERWRITING
Age
AGE
The cost of coverage under equipment floater insurance depends on how old the equipment is.
User Experience
FIVE YEARS
If equipment is less than five years old, replacement is covered. Older equipment will be replaced depending on the actual value.
VIsual Design
DAMAGE
Preventable or foreseeable damage is not covered by equipment floater insurance.
App Development
EXCLUSIONS
Automobiles, watercraft and aircraft are examples of equipment excluded from equipment floater insurance.
OFF PREMISES SERVICE INTERRUPTION
Tracy owns Toothsome Treats, a chain of four retail bake shops that sells fancy cakes and cookies. All of the company’s products are made at the its main production facility, which is located in a building owned by Toothsome Treats.
One day, wind from a severe thunderstorm damages a substation owned by the local electric utility, Endurance Electric. The substation is located several miles from Toothsome Treats’ production facility. The facility loses power (including refrigeration) for two days. Cakes and cookies that were in production when the outage occurred are lost. Raw ingredients that were under refrigeration, like eggs and milk, are also lost. In all, Toothsome Treats suffers a $25,000 loss a result of the outage. Toothsome Treats’ submits a claim to its commercial property insurer. Tracy is shocked when the claim is denied. The reason for the insurer’s denial is the utility services exclusion in Toothsome Treats’ property policy.
Covered Causes – Incoming Supplies
Coverage for loss due to lack of incoming electricity caused by damage from a covered cause (such as a fire or windstorm) to property away from the insured’s premises – usually the utility generating station.
CAUSES
Off-Premises Power Coverage
Off Premises Service Interruptions is also referred to as “off-premises power coverage”. Not provided in a standard property insurance policy but available by endorsement only.
OFF PREMISES
Utility Service Interruption Coverage
Utility service interruption coverage endorsements vary as to what utility services are included, whether both direct damage & time element loss are covered & whether transmission lines are covered.
UTILITIES
LESSON 4 – ASSIGNMENT – SCAVENGER HUNT
Using the Commercial Extension document linked below, answer the following questions!! Submit your answers in a word document in a zip file uploaded in the assignment area at the very foot of this lesson.
DOWNLOAD COMMERCIAL EXTENSION HERE
Q1. What is the allowable percentage for peak season increase?
Q2. Your insured has the extension of coverage and called to inquire if boarding up damaged openings or installing temporary plates with the glass window would be covered after a wind storm. Is this covered?
Q3. ABC Inc is purchasing a new location and they wonder if contents are covered and if so what is the limit and/or conditions?
Q4. Dale is a dentist with a love for art. He just built a new building and decorated with $250,000 worth of art. He asks if it is covered under the policy?
Q5. Mackenzie Metals is headed to a trade show in Australia and are taking $25,000 in equipment and want to know if it is covered under the policy?
Q6. One of your insured’s employees lost their personal laptop while on a business trip and they wonder if this would be covered under the policy?
Q7. There was a fire at one of your client’s plants and the fire department has sent a bill for $35,000. The client has submitted the bill for payment. What is covered?
lesson complete
Congratulate
Yourself!
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Help Desk
Have a question regarding this lesson? Use this form or the e-mail address below to reach us with any questions regarding this course.
melanie@mrdconsulting.ca