Is itself caused by any of the specified causes of loss o Remember we have an

Is itself caused by any of the specified causes of

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Is itself caused by any of the specified causes of loss” o Remember – we have an additional coverage ($10,000) o Covered Causes of Loss Theft – Related Exclusions and Limitations Dishonest or criminal act by certain individuals (employee dishonesty) –Theft by employee - Not covered Destruction of property by employees – covered Voluntary parting – Not covered o Voluntarily hand over property to another as the result of “any fraudulent scheme, trick, device, or false pretense” o Someone comes up and says hey I have this item, mark told me to bring this over – turns out he has nothing to do without business but stole our merchandise – not covered because you voluntarily let them leave o Someone put a gun to the cashier’s head – covered Unauthorized instructions Inventory shortages and unexplained disappearance – not covered o Unless you can show that there was any unauthorized entry into the property – not going to be covered 25
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Theft of building materials unless held for sale Dollar limitations o Theft Related Exclusions and Limitations Dollar Limitations $2,500 for furs, fur garments, Other Commercial Property Coverage Options o Blanket Insurance Specific Insurance Cover each building for a specific limit of insurance and PP at each building with a specific limit of insurance Blanket Insurance: One limit of insurance covers either: One type of property in one or more separately rated buildings Two or more types of property in one or more separately rated buildings o When we have a situation where values may fluctuate a little, we can be admen o We have 1$ mil limit in one building and 1$ mil limit in another building – move some of our stock from one building to the other building, now we have 1.5$ mil in one building and .5$ mil in another building – Value of property now exceeds our limits – Problems we can run into – they are only going to receive $1 mil – also don’t meet coinsurance requirement o Instead – have $2 mil that covers all property – no issue with being fully indemnified or not being coinsurance Very common to use blanket insurance if you have multiple buildings and structures – especially if they aren’t going to have losses at the same time – Building in Florida, Iowa and California – very unlikely something is going to happen to all of them at the same time so you have larger limits o Blanket Insurance Coinsurance Requirement – still have to meet it Standard coinsurance rate is 80% of the value we are insuring 26
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Minimum rate for blanket coverage is 90% without the 5% premium discount – don’t get any rate reduction Advantages of blanket insurance Limit can apply across more than one piece of property (buildings or personal property) Could receive larger amount for debris removal coverage o Say we have specific Insurance – Slide with Blanket sure example Make sure you’ll be fully indemnified you must purchase $1,000,000 o
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