Business Income Insurance

Business Income Business Income InsuranceInsurance

Chubb Commercial Chubb Commercial Insurance BasicsInsurance Basics

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Where’s Waldo?Where’s Waldo?

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1. Where is the insuring 1. Where is the insuring agreement in the form?agreement in the form?

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2. What does “suspension” mean?2. What does “suspension” mean?

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3. What does “Business Income” 3. What does “Business Income” mean?mean?

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4. What does Extra Expense 4. What does Extra Expense mean?mean?

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5. What does “operations” mean?5. What does “operations” mean?

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Business Income (And Extra Expense) Business Income (And Extra Expense) Coverage FormCoverage Form

CoverageCoverageLimits of InsuranceLimits of InsuranceLoss ConditionsLoss ConditionsDuties In The Event Of LossDuties In The Event Of LossAdditional ConditionAdditional ConditionOptional CoveragesOptional CoveragesDefinitionsDefinitions

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Team AssignmentsTeam Assignments

Extra ExpenseExtra ExpenseAdditional Limitation—Interruption Additional Limitation—Interruption

of Computer Operations of Computer Operations andand Interruption of Computer Interruption of Computer OperationsOperations

Civil Authority Civil Authority andand Alterations and Alterations and New BuildingsNew Buildings

Extended Business IncomeExtended Business Income

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Clicker Quiz!Clicker Quiz!

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1. Business income means net 1. Business income means net income that would have been income that would have been earned and continuing normal earned and continuing normal operating expenses incurred, operating expenses incurred, including payroll. including payroll.

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1. Business income means net 1. Business income means net income that would have been income that would have been earned and continuing normal earned and continuing normal operating expenses incurred, operating expenses incurred, including payroll. including payroll.

TrueTrue

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2. One option for business income 2. One option for business income insurance is “business income insurance is “business income other than rental value”. other than rental value”.

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2. One option for business income 2. One option for business income insurance is “business income insurance is “business income other than rental value”. other than rental value”.

TrueTrue

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3. “Operations” means your 3. “Operations” means your business activities occurring at business activities occurring at the described premises. the described premises.

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3. “Operations” means your 3. “Operations” means your business activities occurring at business activities occurring at the described premises. the described premises.

TrueTrue

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4. For extra expense, the period 4. For extra expense, the period of restoration begins of restoration begins immediately after physical loss immediately after physical loss or damage. or damage.

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4. For extra expense, the period 4. For extra expense, the period of restoration begins of restoration begins immediately after physical loss immediately after physical loss or damage. or damage.

TrueTrue

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5. “Suspension” can mean a 5. “Suspension” can mean a slowdown of business activities. slowdown of business activities.

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5. “Suspension” can mean a 5. “Suspension” can mean a slowdown of business activities. slowdown of business activities.

TrueTrue

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Causes of Loss – Special Form Causes of Loss – Special Form ExclusionsExclusions

Finished stockFinished stockRadio or TV antennaRadio or TV antennaInterference by strikersInterference by strikersLoss of license, lease, or contractLoss of license, lease, or contractOther consequential lossesOther consequential losses

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The next coverage parts….The next coverage parts….

Newly Acquired LocationsNewly Acquired LocationsLimitsLimitsLoss ConditionsLoss Conditions

Loss DeterminationLoss DeterminationResumption of OperationsResumption of OperationsLoss PaymentLoss Payment

CoinsuranceCoinsurance

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CoinsuranceCoinsurance

Determine coinsurance basis.Determine coinsurance basis.Determine probable maximum Determine probable maximum

loss.loss.Select an amount of insurance and Select an amount of insurance and

coinsurance percentage.coinsurance percentage.

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1. Determine coinsurance basis1. Determine coinsurance basis

Net incomeNet incomeplusplus

Operating expenses Operating expenses as as defined in the policydefined in the policy

For 12 monthsFor 12 months

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2. Determine probable maximum loss.2. Determine probable maximum loss.

Worst case scenarios!Worst case scenarios!

Securing a building permitSecuring a building permit Repairing, rebuilding, or replacing Repairing, rebuilding, or replacing

the propertythe property Additional construction time for Additional construction time for

ordinance or lawordinance or law Restoration of operationsRestoration of operations Normal salesNormal sales

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3. Select an amount of insurance and 3. Select an amount of insurance and coinsurance percentage.coinsurance percentage.

Refer to participant binder for Refer to participant binder for calculations.calculations.

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Optional CoveragesOptional Coverages

Maximum Period of IndemnityMaximum Period of IndemnityMonthly Limit of IndemnityMonthly Limit of IndemnityBusiness Income Agreed ValueBusiness Income Agreed ValueExtended Period of IndemnityExtended Period of Indemnity

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Team AssignmentsTeam Assignments

Read the policy language.Read the policy language.Identify key points.Identify key points.Prepare to explain the option Prepare to explain the option to a to a

prospectprospect!!Identify characteristics of an Identify characteristics of an

account that would make this account that would make this option a good one.option a good one.

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More stuff!More stuff!

DefinitionsDefinitionsEndorsementsEndorsements

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Movie and Popcorn TheatresMovie and Popcorn Theatres

How much coverage should MPT How much coverage should MPT purchase?purchase?

What endorsements are What endorsements are appropriate?appropriate?

Explain to MPT’s owners how much Explain to MPT’s owners how much insurance they should purchase.insurance they should purchase.

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Vineyard and Winery Case StudyVineyard and Winery Case Study

Recommend limits.Recommend limits.Recommend a coinsurance Recommend a coinsurance

percentage.percentage.Identify endorsements.Identify endorsements.

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The end!The end!

Questions?Questions?

Business Income Insurance

Small Business & Entrepreneurship

Transcript of Business Income Insurance