Basic Principles of Property Insurance
The intention of the parties to the contract is that the insured, on the happening of an event insured against, would be placed by the insurer in the same financial position that he occupied immediately before the event, subject to any limitation, which may have been agreed and written into the contract
Indemnity
What does Comprehensive (All Risk)) policy and Named peril policy cover?
Comprehensive policy covers all perils except those specifically excluded, while Named peril policy individually names the perils covered.
is an important document that provides the details of the proposer and which is used as a basis to ascertain the insurability of an individual
Proposal Form
The three types of catastrophic perils
1. Flood
2. Earthquake
3. Hurricane
The period during which the physical works are carried out on-site, commencing with the first activity and finishing on completion or handover
What is the construction period?
It is an implied condition in all contract of insurance that both the proposer and the insurer shall make a full and complete disclosure of all material facts relating to the risk to be insured
Utmost Good Faith
Name two (2) important factors affecting property insurance rating?
Construction
Location
Allows one to add, delete, alter or eliminate any parts or terms under the policy coverage
Endorsement
provides compensation for a work-related injury due to the negligence of the employer
Employer's Liability Policy
Risks resulting from pollution and contamination
What arenvironmental Risks?
The insured must stand in some relationship to the subject matter, recognized by law, by reason of which he will benefit by its continued safety or be prejudiced by its loss
Insurable interest
The factor that influences the outcome of a loss?
Hazard
a temporary certificate of insurance issued by the Insurer before the issuance of a policy after the Insured has given a duly filled in proposal form and has paid the premium in full
Cover Note
covers the cost of claims made by members of the public for incidents that occur in connection with your business activities.
Public Liability Insurance
Additional Cover that widens the scope of Coverage
What are extensions?
It is the right of the insurer who has granted an indemnity to receive, after payment of a loss, the advantage of every right of the insured in contract or in tort, which may diminish the insured’s loss
Subrogation
This is the amount necessary to repair, rebuild, or replace an asset at today’s prices.
Replacement Cost
is a legal contract between you and your insurer that defines your coverage for a particular type of risk
An Insurance Policy
protects you if your property or goods are lost, damaged or stolen while they are in transit from one place to another
Good in transit insurance
The insurer's maximum liability in relation to a loss under a Contractor All Risk Policy
What is the Contract Price?
A)Is concerned solely with the apportionment of liability as between insurers in the event of double insurance, whereby each will pay their rateable proportion of a claim
b)How much would Insurer A pays if double insurance is on the property with Insurer A 5M and Insurer B 10m and the client suffers the loss of 3M
Contribution
$1,000,000
The three groups of perils
1. Insured
2. Excepted
3. Uninsured
provide proof of insurance and basic information about the insurance coverage you have purchased
Certificate of Insurance
Covers all risks of physical loss or damage to scheduled property subject to the terms, conditions and exclusions of the policy
Commercial All Risk
the period following completion of a construction project during which the contractor is responsible for certain issues arising from the project
What is the Maintenance period?