Insurance: Casualty General

Workers Compensation
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Terms in this set (189)
WC Assigned risk poolprogram that employers that are unable to purchase WC obtain coverageapplicants rejected by two insurers within 60 dayswho qualifies for the WC assigned risk poolGeneral Workers' Compensation Insurance Employers Liability Insurance Other States Insurance (covers if injured in another state) Your Duties If Injury Occurs Premium Conditionsstandard WC policy contains 7 sections45 daysstandard policy requires how many days to report injury3 yearshow many years can be audited for WC`WC Sections: general sectioncontains basic information and definitions (wc)WC Sections: Workers Compensation1. No exclusions 2. No dollar limit 3. Covers BI resulting from any accident including death 4. Cost of defending employer 5. Supplementary benefitsWC Sections: Employers liability1. Claims by employers not subject to WC 2. Claims by others for the liabilities to insured's employees 3. Claims by relatives of injured employees for consequential damages Exclusions 1. Liability assumed under contract 2. Punitive or exemplary damages for employments in violation of law 3. Obligations under any compensation law 4. Injuries intentionally caused or aggravated by the insured 5. Injuries outside the U.S. and its territories or Canada except if U.S. or Canadian citizens temporarily outside the country 6. Obligations under Federal Acts (Longshore and Harbor Workers, Jones Act) 7. Fines or penalties imposed for violation of state or federal lawsWC Sections: Other Stateslist of states work may occur inWC Sections: your duties if injury occursinsd is required to notify carrier of injury and make sure employee is given immediate medical attention (wc)WC Sections: premiumsprovides how the premiums are calculated (wc)WC Sections: conditionscompany can audit insd up to 3 years and expect employer's work place (wc)1. Classifying risks: dangerous = higher rate 2. Payroll. Employer pays a set rate per $100 of payroll 3. Loss experience, ex mod can raise or drop premiumWC rating is determined bytheftunlawful taking of money, securities, or other property to the deprivation of the insuredmysterious disappearanceunexplained absence of covered property without any evidence of theftBurglarytaking of property by a person unlawfully entering or leaving, as evidenced by visible signs of forced entry or exitSecuritiesnegotiable and nonnegotiable instruments representing money or property ex. bondsOther propertytangible property that has intrinsic valuereport to authority or convictionnot required for crime to be coveredleased, trustees, officers, manager, partner, or directorpeople considered employees in crimeagent, broker, factor, commission merchant, consignee, independent contractorpeople not considered employees in crimeSafe burglarytaking from within locked safe with evidence of forcible entry, or taking of whole safeRobberytaking from custody of a person who has been threated with bodily harm or witnessed an unlawful actforgerysigning the name of another personCustodianperson having care and custody or property inside the premises, excluding watchperson or janitorMessengeremployee while having care and custody of property outside the premisesforgerytheft includes..insured, its partners, directors, trustees, members, or employeesForgery coverage exclusions1. Acts committed by the insured, partners, and member 2. Acts of by the insured PRIOR to the policy period 3. Acts of employees, managers, directors, trustees, or representatives 4. Confidential or personal information. 5. Data Security Breach 6. Governmental Action 7. Indirect loss: Business income losses, damages insured is legally liable, expenses of investigating 8. Legal fees, cost, and expenses 9. Nuclear hazard 10.Pollution 11.Virtual Currency 12.War and military actionCrime Exclusionsprinciple, surety, obligeeBond parties1. Name Schedule Bonds: employee./amount listed on schedule. An 2. Position Schedule Bonds: schedule lists positions in the business 3. Commercial Blanket Bonds: covers losses of dishonesty, position and employee specifically listed on schedule. 4. Blanket Position Bonds: bond's limit applies separately to each employee AND the employee and position are not specifically listedtypes of fidelity bonds1. Employee Theft 2. Forgery or Alteration 3. Inside the Premises - Theft of Money and Securities 4. Inside The Premises - Robbery or Safe Burglary of Other Property 5. Outside the Premisesfive primary insuring agreements in the basic Commercial Crime formSurety Bondwherein the fulfilling of an obligation by one party to another is guaranteed by a third partyPrincipalone who promises to perform, fulfill a contract, or meet an obligationObligeeone who is to be guaranteed that the principal will perform - will receive payment from surety if principal defaults, unless it is obligee's faultSuretyone who guarantees the performance of the principal to the obligeeIndemnitor (less common)one who agrees to reimburse the surety for any loss it may suffer from having bonded the principalcharacter, fincnaces, abilitywhat surety looks for in principala. Have the defaulting contractor complete the work and pay the costs. b. Call in another contractor. c. Pay the costs to have the obligee have someone else finish the job.if principal defaults, surety can:Payment bondlabor and material bondMaintenance Bondprincipal is responsible after completion of the project for faulty work or defective materialsSubdivision Bondguarantees the promised streets, sidewalks, sewers, streetlights, and other required improvements will be installedSupply Contract Bondguarantees delivery of supplies at an agreed upon priceCompletion Bondguarantees that when a contractor borrows money for a construction project, that project will be completed without any liensFiduciary bondguarantees the performance of a person appointed by a court, will, or deed, or other financial matters of another1. Probate Bond: designed for those who administer estates of deceased persons. 2. Conservation Bond: designed for those who are appointed to manage and preserve property other than estates of decedents, such as guardian of a minor. 3. Insolvency Bond: required of persons appointed to conserve remaining assets and protect creditors such as receivers and trustees.Three types of fiduciary bondsJudicial bondsguarantee that the principal will fulfill obligations set forth by law. They are usually required by a judge.License Bondguarantee licensee will operate in conformity with lawsPermit Bondpermitting a specific function rather than a continuous operationsurety covers a contractor who did not complete a project on timesurety vs insurance1. Direct: being injured by allegedly unsafe conditions in premises owned or occupied by the insured. 2. Indirect: being held liable for actions of an independent contractor to whom the insured has subcontracted a part of general contract work. 3. Assumed: the liability may ordinarily belong to another, but the insured agreed by contract to indemnify or "hold harmless" one whose direct actions produced the claim.types of liabilityOccurrencetriggered by damage or injury that occurs during the policy period regardless of when a claim is made (most policies)Claims-made:applies to BI and PD that occurs during the policy period AND the claim is received or by the insured during the policy period1. Declarations 2. Common policy conditions 3. Occurrence or Claims-Made Form 4. Nuclear Energy Liability Exclusion endorsement 5. Various endorsementsLiability Contract Sections:Bodily Injury and Property DamageLiability Coverage A1. Premises and Operations Exposure (on premises) 2. Products and Completed Operations (off premises work) 3. Work means (work performed by the insured or on the insured's behalf) 4. Products 5. Contractual liability (business assumes the liability) 6. Vicarious liability (business is held liable for the actions of its employees, agents, or subcontractors)Liability Covered ExposuresBodily Injury(BI) or Property Damage(PD) must be caused by an "occurrence" in the "coverage territory."General Liability Coverage LimitationOccurrence and Claims MadeLiability Coverage TriggersU.S. and its territories or possessions, Puerto Rico, and Canada. It also includes international waters and airspace between these spaces (whole world if talking products)Liability Coverage TerritoryRetroactive datedate of the insurer's first claims-made policy for the insured1. Intentional Injury 2. Contractual 3. Liquor Liability 4. Employee Injuries 5. Pollution 6. Aircraft, Autos, Watercraft-Exceptions 7. Mobile Equipment 8. Miscellaneous Property Damage 9. Insured's products 10. Insured's work 11. Defects, delays 12. Recalls 13. Access or Disclosure of Confidential or Personal Information and Data-Related Liability 14. .Recording and Distribution of Material or Information in Violation of LawBI and PD exclusionsPersonal and Advertising InjuryLiability Coverage Bcoverage B - personal and advertisingcovers offenses, proof of negligence not needed1. False arrest 2. Detention or imprisonment 3. Malicious prosecution 4. Wrongful entry or eviction 5. Libel, slander, or rights of privacy 6. Infringement of copyright, title, or sloganPersonal and Advertising Injury Covers1. Oral or written publications, in any manner, made with knowledge of falsity or occurring before the policy period 2. Willful violation of the law with consent of insured 3. Liability assumed under contract 4. Offense made by an insured in business of advertising, broadcasting, publishing, or telecasting 5. PollutionPersonal and Advertising Injury Exclusions1. Litigation, including court costs 2. Prejudgment interest 3. Interest on judgments 4. Cost of bonds 5. Bail Bonds, $250 6. Expense at company request 7. Loss of earnings, $250Personal and Advertising Injury Supplemental PaymentsMedical paymentsCoverage C Liability1. Medical 2. Dental 3. Hospital 4. Funeral services 5. Basic limit of $5,000 per person appliesMedical Payments made within 1 year of accident1. Injuries to insured 2. Tenant on the part of the premises the tenant normally occupies 3. Employee of insured or tenant. Does not apply to the insured's volunteers. 4. Covered by WC 5. Athletics 6. Injured away from insured's premises by the insured's work after completion 7. Injured by insured's products. This would be covered under Part A. 8. WarMedical payment exclusions1. Individual includes spouse and legal successors if the insured dies 2. Partnership or joint venture includes partners, members, and their spouses as to the conduct of the business 3. Limited Liability Corporation includes members and managers only with connection to conducting the business 4. Organization includes executive officers, directors, and stockholders 5. Trusts which includes the named insured and trustees only in connection with their duties 6. Employees for their acts as employees (including leased workers, excluding temporary workers) 7. Real estate manager for the named insured 8. Volunteer workers while performing duties connected to the insured's business 9. If the insured dies then the legal representatives or anyone having temporary custody of the insured's property 10. If insured acquires or forms another business during policy terms then he/she will become the named insured for 90 days as to events which occur after formation of the new businessWho is insured for GL Medical Payments1. $200,000 general aggregate, maximum per policy year 2. $100,000 per occurrence, BI/PD 3. $100,000 per occurrence, Personal and Advertising Injury 4. $5,000 per person, Medical Payments 5. $100,000 per fire, Fire Damage Legal Liability $200,000 aggregate, products and completed operationsGL basic limitsInsured should notify the insurer of incidents and/or claims made with all relative details and cooperate with the insuredGL ConditionsGeneral liabilityalways primary insuranceSeparation of Insuredscondition that states each insured is covered separately as if they were the only insureda. Insured would have been liable without contract b. Liability assumed underinsured or incidental contracts, such as: - i. Leases - ii. Sidetrack agreements (prop owner/railroad) - iii. Easement agreements - iv. Contracts with municipalities required by ordinance - v. Elevator maintenance - vi. Agreements - vii. Contracts relating to the insured's business under which the insured assumes another's liabilitycontracts not subject to GL exlusionsa. In insured's CCC b. Premises is sold, given away, or abandoned c. Real property where the insured or someone on the insured's behalf are performing operations d. Property that must be restored, repaired, or replaced because the work of the insured or on insured's behalf was incorrectly performedtypes of misc PD GL excludes1. Commercial vehicles 2. Trailers 3. Vehicles that are covered by a self-insurance certification 4. Government owned vehicles 5. Vehicles that are stored and not operatedpap exclusions to the required auto insurance law$25,000 for injury, including death, to ONE person $50,000 for injury to more than one person $20,000 for damages to the property of others (25/50/20)required auto limits1. Minimum $500 for driving without insurance 2. Minimum $1,000 for driving a vehicle whose registration is suspended for not having insurance 3. Suspension of vehicle registration and reinstatement fees are applied as follows: - a. $100 for the first offense - b. 4 month suspension and $100 fee for second or subsequent offense within the preceding four years - c. Six month suspension and $200 fee for submitting a false proof of insurance. Displaying a false insurance card is punishable as a Class A misdemeanor. Making a false insurance card is a Class 4 felonypenalties for not having auto insurance and operating vehicleperson(s) at fault hold financial responsibility"at fault" car statepersonal auto policyPAP = ?1. Individual 2. Related person(s) 3. Unrelated person(s)pap covers1. Corporation 2. Partnership 3. Combination of interestspap will not be issued forPrivate passenger auto and a pickup truck or van that has a Gross Vehicle Weight (GVW) of less than 10,000 pounds. - cannot be used to transport goods or materials, unless for furniture or equipment installation, maintenance or repair, farming or ranching - Intended for private family exposure, issued only to an individual or related persons, or unrelated persons who reside togetherEligibility for a pap1. Declarations 2. Agreement and Definitions 3. Part A: Liability Coverage 4. Part B: Medical Payments 5. Part C: Uninsured Motorists 6. Part D: Damage to Your Auto 7. Part E: Duties After an Accident or Loss 8. Part F: General ProvisionsPAP SectionsLoss payeeone who has an interest in the vehicle, such as a bank or finance companyyou and your spouse (if resident), if spouse moves they are insured for 90 days or end of policy periodNamed insured on PAPrelatives, wards, and foster children in the named insured's house"family members" on a papNamed Non-Owner Coverageendorsement for someone who does not own a vehicle, but may drive borrowed or rented autosscheduled vehicle, trailer, newly purchased, or temporary replacementyour covered auto includesnew vehicle receives equivalent to your broadest coverage, except damage to vehicle for the first 30 days, unless it is replacing the previous vehiclenewly acquired auto coverageinsd received auto coverage equal to the broadest coverage and lowest deductible they already havenewly acquired damage to your auto coverageIllinois Automobile Insurance PlanIllinois assigned risk plan is called... in Illinoiscovers drivers unable to get lower limits than that the IAIP offers within 60 days from 3 different companiesIllinois Automobile Insurance Plan does what1. bodily injury liability 2. property damage liability 3. medical payments 4. physical damage 5. uninsured motoristIllinois assigned risk plan offersrental coverageIllinois assigned risk plan exludesLiability: Bodily Injury, Property Damage, and legal defenseAuto Coverage Part ACost associated with defense, additional to limits : 1. Bail bonds up to $250 2. Expenses incurred at insurer's request 3. Appeal bonds 4. Loss of earnings of $200 per daySupplementary Payments1. Named Insured and resident family members for the ownership, maintenance, or use of any auto or trailer 2. Any person using your covered auto with permission 3. Anyone legally responsible for your covered auto (vicariously liable) 4. Anyone legally responsible for any auto or trailerWho is insured for Auto Coverage A1. Intentional injury 2. Insured's damaged property 3. Damage to property rented to, used by, or in the care of the insured, EXCEPT damage to residence or private garage 4. Injury to employee already covered by WC 5. Using vehicle as public livery EXCEPT car pools 6. (selling, repairing, servicing, storing, or parking vehicles) 7. Business use, EXCEPT farming or ranching or use of non owned private passenger, pick-up, or van 8. Using a vehicle without the reasonable belief that they are entitled to do so 9. Nuclear Energy liability policyAuto Liability exclusions1. Has fewer than four wheels 2. An auto furnished for the insured's regular use 3. An auto furnished for the regular use of a family member, EXCEPT the named insured or their spouse 4. During a prearranged race or speed competition 5. Vehicles used as residencesvehicles not protected under part A$25,000 per person for bodily injury (BI) or death $50,000 per accident for bodily injury or death to two or more persons $20,000 per accident for damage to property of others.Auto Coverage A Limits1. Trailers 2. Commercial vehicles 3. Vehicles insured by a certificate of self-insurance 4. Government-owned vehicles 5. Vehicles inoperable or storedAuto Coverage A Limits exclusionsprimaryAuto part A and B limits for owned vehicles areexcessAuto part A and B limits for nonowned vehicles areMedical PaymentsAuto Coverage part B- optional coverage - choice of 1, 2, 5 or 10 thousand per person per accident - first party coverage - coverage up to 3 years after accident - pays w/o regard to faultRules of Auto coverage Binsured and family members while occupying vehicle or as pedestrian struck by vehicle, and any others occupying vehicleWho is covered for Auto Coverage B1. Fewer than four wheels 2. Public/Livery 3. Workers' compensation is payable 4. Auto which is furnished or available for regular use 5. Used without permission 6. Business use of non-private passenger auto 7. During a prearranged race or speed competition 8. War and Nuclear hazard 9. Vehicles used as residencesAuto Part B ExclustionsUninsured motorist / Under insured motoristAuto Coverage Part C- mandatory - coverers you if the other driver does not have insuranceRules of auto Coverage Part C1. Named Insured and Family members in any auto 2. Others while occupying "your covered auto"Who is insured in Auto Coverage C1. Motorists without insurance 2. Hit-and-run driver 3. Driver whose insurance company is insolventUninsured vehicle$25,000 for bodily injury or death to any one person in any one accident. $50,000 for bodily injury or death to two or more persons in any one accident. *must equal Part A requirements unless rejected by insuredAuto Coverage Part C Limitsuninsured motorist property damagecoverage is mandatory unless insured has collision coverage1. Agreement 2. Arbitration submitted to the American Arbitration Association 3. Suitdetermination of damages for Auto part CDamage to your AutoAuto Coverage part D1. Your covered auto 2. Non-owned auto, including their equipment 1. Collision 2. Other Than CollisionAuto Coverage D coversprivate passenger auto, pickup, van, or trailer that is not owned by or furnished for regular use while being operated or in the care of the named insured or family memberNon owned auto1. Falling objects, Fire 2. Earthquake 3. Windstorm, Water, Hail, Flood 4. Theft, Glass 5. Riot, Civil Commotion, Missiles 6. Animal/Bird Collision 7. Vandalism 8. Explosion 9. LarcenyOther than Collision examples- first party vehicles only - deductible - not required by stateRules of Auto Coverage D1. $20 per day/$600 maximum 2. 48 hour waiting period (theft) 3. No deductible 4. Benefit begins 48 hours after loss and ends when vehicle is returned or company has paid the lossAuto Coverage D Transportation and Out of Use expenses1. Mechanical Breakdown 2. Tires, road damage, racing and transportation for hire 3. Wear and tear, war and nuclear 4. Tapes, records, etc. 5. Freezing, fancy fixtures, fuzz buster 6. Sound reproducing equipment. - a. Permanently installed - b. $1,000 limit for non-factory installed items 7. Seizure by the government PLUS 8. Camper body/trailer not on the declaration page 9. Custom furnishings on pickup/van and awnings and cabanas 10.Non owned auto in the auto businessAuto Coverage D exlusions1. Lesser of ACV or cost to repair or replace 2. $1,500 for any non owned trailer 3. A deductible is subject to both collision or other than collisionAuto Coverage D losses paidOther ProvisionsAuto Coverage FDuties After LossAuto Coverage E1. Prompt notice of accident and the where, when, and how it happened 2. Forwarding legal papers 3. Cooperation with the insurer 4. Submit to physical exam 5. Proof of loss (if uninsured: also notify the police if it is a hit and run) (if coverage D: also protect the damaged property and Allow inspection before it's repaired)Part E insured's duties1. U.S. 2. Canada 3. Puerto Rico 4. U.S. territories and possessionsCoverage F Territories1. Non-payment of premium 2. Policy obtained through material misrepresentation 3-5. The insured violates any terms or conditions or lies to the insurance company in a way that affects coverage of the policy 6. Suspension or revocation of an insured's driver's license, within 12 months prior to cancellation 7. Medical, mental, or physical condition that could endager public safety 8. The automobile fails an inspection, unfit for use, the car is altered which increases the risk, or vehicle is not used as a personal autoAfter 60 days an insurer cannot cancel and auto policy unlessinsured 55 or older must be offered a discount if they can pass an approved defensive driving courseDefensive Driving DiscountPrivate Passenger Auto Commercial Auto - non standard trucks, truck tractors semis, commercial trailers, Public Auto - busses, taxis, rented Special Autos - self propelled w permmently attached equipautos owned under BAPBusiness Auto and GarageBAP coverage forms1. Section I: Covered Autos 2. Section II: Liability 3. Section III: Physical Damage Coverage 4. Section IV: Business Auto Conditions 5. Section V: DefinitionsBAP Policy Format1. Uninsured Motorist: As with the PAP, Illinois requires basic limits of 25/50 (215ILCS 5, 143a). 2. Medical Payments: This endorsement is optional.BAP Separate EndorsementsBAP Symbol 1Any Auto: hired, borrowed, usedBAP Symbol 2Owned AutoBAP Symbol 3Owned private passengerBAP Symbol 4Owned autos other than private passenferBAP Symbol 5 owned autos subject to no-fault onlyowned autos subject to no-fault onlyBAP Symbol 6Owned autos subject to compulsory UM lawBAP Symbol 7Specifically described autosBAP Symbol 8Hired Autos OnlyBAP Symbol 19Mobile equipment subject to compulsory or financial responsibility25,000 - 50,000 - 20,000BAP Liability Limits1. Named insured for any covered auto 2. Permissive users 3. Those liable for conduct of insuredBAP Liability Insureds1. The owner of an auto hired or borrowed from an employee or family member 2. Person working in an auto-type business 3. Person, other than an employee or lessee, who is moving property to or from a covered autoBAP Liability Non-insured1. Assumed liability, except under insured contract 2. Employee injuries 3. Damage to property in the Care, Custody, and Contol (CCC) of the insured 4. Handling of the property before being moved to the place where it is accepted by the insured 5. Movement of property by mechanical device other than a hand truck 6. Pollution, except fluids, from the vehicle 7. Operation of certain mobile equipment 8. Expected or intended injury 9. Completed operations 10.Injuries from organized racing, stunting, or demolition contests 11.WarBAP Liability Exclusions1. Expenses that the insurer incurs 2. Up to $2,000 for bail bonds because of a covered accident 3. Cost of bonds to release attachments, but only within the limit of insurance 4. Expenses the insured occurred at the insurer's request, including up to $250 a day for time off from work 5. All court costs c 6. Interest that has accrued after the judgement before paymentBAP Liability Supplementary Paymentsmodifies the limit of liability to meet the other state's financial responsibility requirementsBAP Out-of-State Coverage Extension1. United States 2. US territories and possessions 3. Puerto Rico 4. Canada 5. 30 days worldwide for hired, leased, rented, borrowedBAP Out-of-State Coverage Extension territoriesComprehensive Specified Causes of Loss CollisionBAP Physical Damage Coverages1. Transportation: $20 per day; $600 maximum 2. Towing and Labor: $25 limitBAP Physical Damage Transportation Coverage1. Sound reproducing and receiving equipment, tapes, and records 2. Wear and tear 3. Freezing 4. Mechanical or electrical breakdown 5. Road damage to tires 6. War and nuclear eventsBAP Physical Damage Exclusions1. Duties after loss 2. Subrogation 3. Changes 4. Transfer 5. Cancellation 6. Other Insurance 7. Used for organized or professional racing 8. Diminished valueBAP Physical Damage Conditions1. Rental Reimbursement: adds coverage for additional amount incurred for the cost of renting an auto in the event of covered damage to the covered vehicle. 2. Individual Named Insured: broadens coverage on autos to immediate family members of the named insured. 3. Drive Other Car: 4. UM 5. Medical PaymentsBAP Endorsements1. Territory Garaged 2. Radis of operation 3. Size or Type 4. Business UseBAP Rating Based On1. Servicing 2. Selling 3. Repairing 4. ParkingGarage Insurance Coverage1. Ownership 2. Maintenance or use of location for garage business and the ways adjoining 3. All operations necessary or incidental in the business 4. Autos indicated by covered auto symbols in the declarationsGarage Liability covers25,50,20Garage Liability Limits1. Watercraft or aircraft except watercraft on premises 2. Property damage to insured's own work or products (Defects) 3. Loss of use of property if caused by insured's delay or failure to perform an agreement of contract 4. Claims for product recallGarage Liability Exclusions$100 each accident resulting from prop damageGarage Liability DeductibleDamage for which the insured is liable to customers' cars, which the insured has for servicing, repairing, parking, or storingGarage Keepers Coverage1. Comprehensive: all losses except collision or overturn 2. Specified Cause of Loss: Fire, explosion, theft, mischief, or vandalism 3. CollisionGarage Keepers Cause of Loss1. Standard: $100 per car up to $500 per occurrence for theft, mischief, or vandalism 2. Collision: insured can select $100, $250, or $500Garage Keepers Deductible1. Sound reproducing and receiving equipment, tapes, and records 2. Agreement in which insured accepts responsibility for loss 3. Theft or conversion by the insured, employees, or shareholders 4. Defective parts or materials or faulty work performed by or on behalf of the insuredGarage Keepers Exclusions1. Comprehensive or Specified Perils and Collision (same as BAP) 2. Dealers Risk is usually issued on a blanket coverage basis. Can be either: - a. Reporting basis: Monthly or quarterly, or - b. Non-reporting basis: Subject to limit stated on policyBAP Physical Damage Coverageno coverage for auto leased or rented to others (except to customer who has left their auto for repair or service) for: 1. Organized racing, or 2. Voluntarily parting with auto by a trick or scheme or under false pretensesBAP Physical Damage Exclusions1. Expected profits 2. Loss at newly acquired, unreported location, if loss occurs more than 45 days after acquisition of property 3. Autos being transported more than 50 miles apart 4. Collision or upset of the transporting vehicleDealers Physical Damage Coveragea. Fire b. Lightning c. Explosion d. Theft e. Windstorm f. Hail g. Earthquake h. Flood i. Mischief j. Vandalism k. Sinking, burning, collision, or derailment of a conveying transportAuto Specified Causes of Loss:1. Declarations 2. Common Policy Conditions 3. Boiler/Machinery Coverage Form - a. Equipment Breakdown Protection Coverage Declarations - b. Equipment Breakdown Protection Coverage Form 4. Object Definitions 5. EndorsementsBoiler Machinery/Equip Breakdown Coverage Partsdirect physical loss that causes damage to "covered equipment" and necessitates its repair or replacement 1. Failure of pressure or vacuum 2. Mechanical failure including rupture or bursting caused by centrifugal force 3. Electrical failure including arcing"Breakdown"1. Malfunction including but not limited to adjustment, alignment, calibration, cleaning, or modification 2. Defects, erasures, errors, limitations, or viruses in computer equipment and programs with the inability to recognize and process any date or time or provide instructions to "covered equipment" 3. Leakage at any valve, fitting, shaft seal, gland packing, joint, or connection 4. Damage to any vacuum tube, gas tube, or brush 5. Damage to any structure or foundation supporting the "covered equipment" or any of its parts 6. The functioning of any safety or protective device 7. The cracking of any part on an internal combustion gas turbine exposed to the products of combustion"Breakdown" does NOT meanIf initial breakdown causes multiple breakdowns, it is still considered 1.One Breakdown Rule1. Equipment built to operate under internal pressure or vacuum other than weight of contents 2. Electrical or mechanical equipment that is used in the generation, transmission, or utilization of energy 3. Communication equipment and "computer equipment" 4. Equipment that is owned by a public or private utility and used solely to supply utility services to the insured's premisesBoiler/Equip Breakdown: Covered Equipment1. Property Damage 2. Expediting Expense - making temp repairs or expediting permeant repairs 3. Business Income/extra expense 4. Spoilage Damage 5. Utility Interruption 6. Newly acquired premises 7. Ordinance or Law Coverage 8. Errors or Omissions 9. Brands and Labels 10. Contingent Business income and Extra Expense or Extra Expense Only Coverage -happens at location scheduled, but now ownedCoverage Provided in Equipment Breakdown1. Ordinance or Law 2. Earth Movement 3. Water 4. Nuclear Hazard 5. War or Military Action 6. Certain explosions 7. Fungus, Wet Rot, or Dry Rot 8. Depletion, deterioration, corrosion, erosion, or wear and tear 9. Certain testing of the equipmentEquipment Breakdown Exclusions$25,000 per breakdown unless the insured selects a higher amount for: 1. Ammonia contamination 2. Consequential loss 3. Data and media 4. Hazardous substance 5. Water damageEquipment Breakdown Limits of Insurance1. dollar amount 2. time, certain amount of days following loss 3. multiple of daily value: # x daily income would be 4. percentage of lossEquipment Breakdown Deductibles1. Suspension. This condition allows the insurer to immediately suspend breakdown coverage if a piece of equipment is determined by the insurer to be dangerous. 2. Valuation. This condition determines how the insurer determines the loss payment.Equipment Breakdown Loss Conditions