Briefly describe, in both the general and narrower sense, what is covered and what is omitted in commercial property insurance.
commercial property insurance covers commercial buildings and their contents against loss caused by fire, windstorm, and many other cuases of loss, or perils. Commercial property insurance (in its narrower meaning) provides littles, if any, coverage for property while it is in transit or otherwise away from teh insured location. Commercial property insurance omits most crime-related perils as well as mechanical or electrical breakdown or steamboiler explosion.
Distinguish ocean marine insurance from inland marine insurance.
ocean marine insurance differs from inland marine insurance in that ocean marine insurance conforms to the international meaning of marine insurance, whereas inland marine insurance includes a wide variety of risks that in the US were first insured by marine underwriters THese risks include property in domestic transit, mobile equipment, buildings in the course of construction, property essential to transportation or communication (such as bridges,tunnels, and radio and tv towers) and many other classes or property that typically involve an element of transportation.
Describe a surety bond and how a contractor might be involved in its use.
a surety bond is defined as an agreement by one party (the surety) to answer for the failure of another (the principle) to perform as the principal has promised. Contract surety bonds are widely used to guarentee that a contractor (the principle) will complete a building project according to specifications and whitin a stated time frame, that the contractor will pay certain bills for labor and materials, and that the contractor's work will be free from defects for a specified period.
Family Fare, Inc (FFI) owns a building in which it operates a restaurant. It also owns furniture, equip, fixtures, and supplies typical of a restaurant. FFI employs twelve people in the restaurant. It also owns two trucks, which certain employees use to deliver take-out orders. Identify and briefly describe at least five types of insurance (lines of business) FFI needs to cover its loss exposures.
- 1. Commercial property Insr: inrs to cover its building and contents against perils such as fire, windstorm, and so forth.
- 2. Business Income Insr: coverage to protect FFI in case it suffers a fnan loss from lost income and/or increased expenses due to physical damage (such as fire) to its building or contents.
- 3. Commercial general liability insr: Insurance to cover the loss exposure of a suit or claim for damages arising from the retaurant operation, such as a customer becoming ill after eating FFI's food.
- 4. Commercial automobile insr: Inrs to cover liability and physical damage losses arising from the ownership anduse of the two trucks.
- 5. Workers compensation and employers liability insurance: insruacne to cover FFI's legal obligation to pay benefits for employees' job-related injuries or illnesses.