Commerical Property Loss Exposures
What is the biggest peril for most business ?
fire
When property that a business uses to generate income becomes damaged or stolen, what kind of loss is typically suffered?
business income loss
consequences for an organization if a court rules that it is responsible for injury, harm, or damage to another party
Damages, Defense costs, Reputational harm
Types of Commercial Auto Loss Exposures
Property loss exposures
Personal loss exposures
Liability loss exposures:
Any organization with employees may be liable to pay benefits to those
employees if they get hurt or sick because of their work.
What are the seven categories of commercial property
a. Buildings
b. Personal property contained in buildings
c. Money and securities
d. Vehicles and watercraft
e. Property in the possession of others
f. Property in transit
g. Floating property
List the :
examples of extra expenses
examples of continuing expenses
examples of extra expenses
-payroll -utilities
-equipment -relocation
examples of continuing expenses
-payroll -utilities
-taxes -insurance -rental or lease
What is the liability exposures described below
possibility that an organization will be held liable because of bodily injury or property damage caused by either the manufacture, distribution, or sale of an unsafe or defective product or the entity’s completed work.
products and completed operations liability exposure
Workers compensation benefits include which one of the following?
Rehabilitation benefits
Most occupational diseases become evident during employment or soon after an employee’s exposure to harmful conditions. But many states provide
extended periods of time for discovering slowly developing diseases.
Sometimes a peril doesn’t alter the property itself. Instead, it may.....
alter the owner’s ability to use it.
True or false
Typically, income losses stem from damage to an organization’s own property. But this isn’t always the case
False
income loss also incurs in continuing and extra expenses the organization while business is interrupted.
A grocery store customer is injured when he slips and falls on a wet floor that was just mopped by an employee who failed to put up a warning sign.
This is an example of which kind of liability loss exposure?
Premises liability loss exposure
Liability for completed operations is so similar to which one of the following types of liability exposures that the two are often treated as components of one loss exposure?
Products liability
Examples of cyber risks that can damage an organization’s reputation are:
a. A breach of customer data that becomes publicized
b. A disgruntled employee or former employee airing grievances online
c. Customers voicing their displeasure with the organization’s products or services on websites and social media
most common financial consequences of loss are:
List and Define
1. Reduced value—When a loss occurs, the property’s value can be
reduced or eliminated.
2. Lost income—A business may not be able to use the property in
question until it has been repaired, restored, or replaced.
3. Extra expenses—Businesses sometimes have to pay additional
costs to keep operating after a loss.
Key parts of calculating a business income loss are determining the
lost revenue and any continuing and extra expenses the business incurred during the period of interruption.
A passerby at a contractor’s job site is injured by a tool dropped from a ladder by one of the contractor’s employees.
This is an example of which kind of liability loss exposure?
Operations liability loss exposure
explain possessing another party’s auto in a bailment—
bailee is a party temporarily possessing personal property in a bailment. Businesses that service or repair autos can be bailees who may be held liable for damage to cars temporarily left in their custody.
Explain the difference between Temporary partial disability and Temporary total disability:
Temporary total disability: Disability caused by a work-related injury or disease that temporarily renders an injured employee unable to perform any job duties for a period of time (such as 30 or 60 days). After that period, the worker is expected to be able to resume all job duties.
Some of the most significant perils include :
These can result in _______ ______
fire, theft, windstorm, flood, earthquake, terrorism, vandalism, war
These can result in catastrophic losses.
Do you think the causes of business income losses associated with property exposures are typically the same as or different from those for physical damage losses?
Same,the causes of business income losses associated with property exposures are typically the same as those for physical damage losses. Thus, a property loss caused by fire, theft, windstorm, flood, earthquake, terrorism, vandalism, or war may also cause a business income loss.
A family’s party guests are injured when the wooden deck that was completed a few weeks earlier by a contractor collapsed.
This is an example of which kind of liability loss exposure?
Completed operations liability loss exposure
What are some examples of Marie loss exposure
Name 7 out of 10
cargo , vessels, loss of fright, contractors equipment, domestic shipments, tools transport to and from sites, bridges, exhibition property, property in bailee, builders risk
other risk factor in regard to data are
Other risks can include:
a. Failing to comply with laws or regulations
b. Unethical or illegal behavior by employees
c. A major lawsuit against the organization