Property & Casualty Insurance License Exam Tips: Business Owners Policy


Complete Video Transcript

0:07when writing a business owners policy
0:10you will have the following six items included in every policy there may be
0:15more things but there will never be less than these
0:17following six items when riding a business owners policy
0:20and prior to giving you the six items will always appear
0:24in this paper policy I want you to know that it’s automatically X
0:28assumed that anything explicitly or specifically excluded in a policy
0:34well obviously not be covered so instead of saying that for each one just know
0:38that as I talk about each area coverage
0:40if there is a specific exclusion it is not covered
0:44unless it’s specifically excluded and these are the six things that you’ll
0:48and every businesses owners policy the first one will be building coverage
0:52were and building coverage
0:58%uh policy covers the value of appliances the building itself or pieces
1:03of equipment that are damaged or destroyed
1:06next after building coverage is personal property coverage
1:18under this part of the policy your insuring in agreeing to pay the amount
1:23equal to the value of the businesses property
1:26or the property up another individual or organization that is in the care
1:30up the business that either is damaged or destroyed as the result that any
1:35under the third par this business owners policy would be called an extra expense
1:40coverage up
1:49in this part of the policy what you are agreeing to pay is an amount equal to
1:55the amount that a business will need
1:56to continue operating at the business can no longer function as the result in
2:00any event
2:01obviously not specifically excluded by the policy
2:04I know if an individual in this case whose business was
2:07temporarily shut down due to Hurricane the pass through the area
2:11and this part of the policy covers expenses while I could no longer
2:15carry on business because the power grid was down and other things like that
2:18that allowed him to bring his workers back continue to pay them and get them
2:22sent out to help effect repairs
2:24in their customers homes as well so this particular part of the policy is
2:29and help someone carry on their business wanna bet
2:32makes it possible for them not to be able to function as they normally work
2:36the next area coverage is liability coverage
2:39all while
2:42went to this party the policy
2:47what we are covering is other legal fees and/or damage is that an insured
2:52business may incur as a result of the organization’s business activity so they
2:56are sued
2:57or they are a ruled against a court case then this part of the
3:01a business owners policy will cover those expenses
3:05next is a medical expenses
3:14and under this part the policy you’re not covering the medical expenses are
3:18the owner of the business or any employee
3:20these are expenses that come about because if someone else not associated
3:24with the business who is either
3:26Harbor damaged in some way while on the businesses property
3:29so this is someone who does not live or work with the insured but
3:34is injured on the businesses property as a result they’re needing medical
3:38coverage this part the policy covers those medical expenses
3:41and then finally the last two part
3:44this policy it’s called supplemental
3:49liability up
3:54and this comes in here after
3:57number four has been used a liability coverage covering legal expenses or
4:02covering damages
4:03if the amount legal expenses or damages exceeds what is covered under four the
4:07number six kicks in with a supplemental about
4:10to cover the shortfall that was uncovered under four so when writing
4:14your business owners policies they will always include the six items
4:18at a minimum with the understanding that it is specifically excluded
4:22then obviously you don’t pay but everything else is covered from the
4:25the personal property extra expenses due to
4:29loss to being able to conduct business liability
4:32medical expenses for those who are on the property and injured and finally
4:35supplemental liability

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