Commercial Property Insurance – ContinuedExclusions Vary by Policy Form Broad Form Exclusions (Appendix C – pages 715-718)Consequential Property Coverage Business Income Coverage (BIC)Business Income Coverage Example (Page 250)Other Property CoverageInland Marine InsuranceNationwide Marine DefinitionGeneral Characteristics of Inland Marine PoliciesGlobal Property ExposuresCommercial Property Insurance –ContinuedChapter 10Business Property InsuranceAppendix CBuilding and Personal Property Coverage FormExclusions Vary by Policy FormBroad Form Exclusions(Appendix C – pages 715-718)•Ordinance or law•Earth movement•Governmental action•Nuclear hazard•Off-premises services•War or military action•Water•Electrical current•Explosion of steam boilers•Mechanical breakdown•Special exclusions:–Specified coverage formsConsequential Property CoverageBusiness Income Coverage (BIC)Business interruptionNet incomeContinuing normal operating expenses incurred, including payrollExtra expenseCauses of loss Direct physical loss or damage to property described in declarationsCoinsuranceMonthly limit of indemnityMaximum period of indemnityPayroll endorsementsBusiness Income Coverage Example(Page 250)•Chicago flood of 1992•Expected net income for April 1992 $45,000•Actual net income in April 1992 ($72,000) •Value of loss $117,000Other Property CoverageCommercial Crime CoverageInland MarineBoiler and MachineryBusinessowners PolicyInland Marine InsuranceDevelopmentRegulatory restrictions on other coveragesCould offer all-risk coverageLess restrictive regulationsNationwide Marine DefinitionImportsExportsDomestic shipmentsInstrumentalities of transportation and communication (bridges, tunnels, piers, power lines, television towers)Various types of individual personal property (jewelry, furs, instruments)Various types of business property (mobile equipment, animals, computers)General Characteristics of Inland Marine PoliciesCoverage for property in transitLoss exposures coveredPhysical lossBusiness income and extra expenseBroad coverage of perilsValuation provisionsActual cash value, replacement cost, selling price, invoice value or agreed valueGlobal Property Exposures•Laws and regulations in foreign countries•Data collection and analysis•Exchange rate risk•International property-liability
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