TWFG Commercial Business School – Lessors Risk 1 Lessors Risk Only.
Lessors Risk Only
description
Transcript of Lessors Risk Only
![Page 1: Lessors Risk Only](https://reader035.fdocuments.in/reader035/viewer/2022070423/5681675d550346895ddc2943/html5/thumbnails/1.jpg)
TW
FG C
omm
ercial Business School – L
essor’s Risk
1
Lessors Risk Only
![Page 2: Lessors Risk Only](https://reader035.fdocuments.in/reader035/viewer/2022070423/5681675d550346895ddc2943/html5/thumbnails/2.jpg)
TW
FG C
omm
ercial Business School – L
essor’s Risk
2
TWFG Commercial Business SchoolLessors Risk Only
Learning Objectives
To understand the basic Commercial and Habitational LRO risk exposures
To be familiar with the common coverages provided in carrier enhancements for this class of business
To be aware of the admitted market appetite for this class
To be able to successfully complete ACORD applications
![Page 3: Lessors Risk Only](https://reader035.fdocuments.in/reader035/viewer/2022070423/5681675d550346895ddc2943/html5/thumbnails/3.jpg)
TW
FG C
omm
ercial Business School – L
essor’s Risk
3
TWFG Commercial Business School Lessors Risk Only
Glossary
LRO (Lessors Risk Only)
Vacancy
Preferred Lease Contract
Lessor’s Leasehold Interest
Ordinance or Law
![Page 4: Lessors Risk Only](https://reader035.fdocuments.in/reader035/viewer/2022070423/5681675d550346895ddc2943/html5/thumbnails/4.jpg)
TW
FG C
omm
ercial Business School – L
essor’s Risk
4
TWFG Commercial Business School Lessors Risk Only
Exposures in General
General Liability Property
Housekeeping Age & Condition
Additional Insured Status Roofs & ElectricalTypes of Tenants Types of Tenants
Vacancy
![Page 5: Lessors Risk Only](https://reader035.fdocuments.in/reader035/viewer/2022070423/5681675d550346895ddc2943/html5/thumbnails/5.jpg)
TW
FG C
omm
ercial Business School – L
essor’s Risk
5
TWFG Commercial Business School Lessors Risk Only
Business Income
When choosing Business Income, the insured must select one or more of the three options. Those with “Rental Value” apply for LRO risks:
Business Income including “Rental Value”
Business Income other than “Rental Value”
“Rental Value”
![Page 6: Lessors Risk Only](https://reader035.fdocuments.in/reader035/viewer/2022070423/5681675d550346895ddc2943/html5/thumbnails/6.jpg)
TW
FG C
omm
ercial Business School – L
essor’s Risk
6
TWFG Commercial Business School Lessors Risk Only
Carrier EnhancementsFairly generic. Most offer some additional limits on specific coverages such as:
Ordinance or LawDebris Removal and Utility Services-Direct
Damage
Coverages of Note:Tenant Move Back ExpensesLessor’s Leasehold Interest
![Page 7: Lessors Risk Only](https://reader035.fdocuments.in/reader035/viewer/2022070423/5681675d550346895ddc2943/html5/thumbnails/7.jpg)
TW
FG C
omm
ercial Business School – L
essor’s Risk
7
TWFG Commercial Business School Lessors Risk Only
Carrier Appetite
Habitational:Very little appetite in the admitted markets
Some appetite for Apartments, but guidelines are tough and no Tier 1 or Tier 2 availability
Some rental dwelling capacity with USLI
![Page 8: Lessors Risk Only](https://reader035.fdocuments.in/reader035/viewer/2022070423/5681675d550346895ddc2943/html5/thumbnails/8.jpg)
TW
FG C
omm
ercial Business School – L
essor’s Risk
8
TWFG Commercial Business School Lessors Risk Only
Carrier Appetite
Commercial LROs:Some appetite in the admitted markets. Bank
or Office LROs are acceptable to most our carriers
Some appetite for commercial condos (business occupancy) and manufacturing LROs
![Page 9: Lessors Risk Only](https://reader035.fdocuments.in/reader035/viewer/2022070423/5681675d550346895ddc2943/html5/thumbnails/9.jpg)
TW
FG C
omm
ercial Business School – L
essor’s Risk
9
TWFG Commercial Business School Lessors Risk Only
Preferred SIC Codes
All preferred risks in this category fall under SIC code 6512
Support Document Located on the Branch & GA websites
![Page 10: Lessors Risk Only](https://reader035.fdocuments.in/reader035/viewer/2022070423/5681675d550346895ddc2943/html5/thumbnails/10.jpg)
TW
FG C
omm
ercial Business School – L
essor’s Risk
10
TWFG Commercial Business School Lessors Risk Only
Submission ChecklistA submission checklist is the easiest way to ensure that all exposures have been accounted for and addressed
Support document is available on the Branch & GA website
![Page 11: Lessors Risk Only](https://reader035.fdocuments.in/reader035/viewer/2022070423/5681675d550346895ddc2943/html5/thumbnails/11.jpg)
TW
FG C
omm
ercial Business School – L
essor’s Risk
11
TWFG Commercial Business School Lessors Risk Only
Case StudyThis segment includes a Case study. For those Branches participating in the Certified Commercial Branch Agency (CCBA) Program you will need to complete and pass in order to receive credit for this segment. For Branches not participating, the Case Study is optional
For GA agents the Case Study is optional.
The Case Study material will be available on the Branch and GA portals
RETURN COMPLETED CASE STUDIES TO MARK GLAUG @
![Page 12: Lessors Risk Only](https://reader035.fdocuments.in/reader035/viewer/2022070423/5681675d550346895ddc2943/html5/thumbnails/12.jpg)
TW
FG C
omm
ercial Business School – L
essor’s Risk
12
TWFG Commercial Business School Lessors Risk Only
QUIZ
![Page 13: Lessors Risk Only](https://reader035.fdocuments.in/reader035/viewer/2022070423/5681675d550346895ddc2943/html5/thumbnails/13.jpg)
TW
FG C
omm
ercial Business School – L
essor’s Risk
13
TWFG Commercial Business School Lessors Risk Only
1. Name three critical exposures (GL or Property) that need to be analyzed for this class of business.
![Page 14: Lessors Risk Only](https://reader035.fdocuments.in/reader035/viewer/2022070423/5681675d550346895ddc2943/html5/thumbnails/14.jpg)
TW
FG C
omm
ercial Business School – L
essor’s Risk
14
TWFG Commercial Business School Lessors Risk Only
1. Name three critical exposures (GL or Property) that need to be analyzed for this class of business.
Age and Condition of BuildingTenantsRoofVacancyHousekeeping
![Page 15: Lessors Risk Only](https://reader035.fdocuments.in/reader035/viewer/2022070423/5681675d550346895ddc2943/html5/thumbnails/15.jpg)
TW
FG C
omm
ercial Business School – L
essor’s Risk
15
TWFG Commercial Business School Lessors Risk Only
2. Name three of the four preferred elements of a landlord lease contract.
![Page 16: Lessors Risk Only](https://reader035.fdocuments.in/reader035/viewer/2022070423/5681675d550346895ddc2943/html5/thumbnails/16.jpg)
TW
FG C
omm
ercial Business School – L
essor’s Risk
16
TWFG Commercial Business School Lessors Risk Only
2. Name three of the four preferred elements of a landlord lease contract.
Each tenant carries CGL form “A” rated carrier with $1M/$2MLandlord listed as AI on all tenants’ CGL policyLandlord granted WOS status on each tenants’ CGL policyEach tenant provides COI and AI endorsement to the landlord
![Page 17: Lessors Risk Only](https://reader035.fdocuments.in/reader035/viewer/2022070423/5681675d550346895ddc2943/html5/thumbnails/17.jpg)
TW
FG C
omm
ercial Business School – L
essor’s Risk
17
TWFG Commercial Business School Lessors Risk Only
3. What is Ordinance or Law coverage?
![Page 18: Lessors Risk Only](https://reader035.fdocuments.in/reader035/viewer/2022070423/5681675d550346895ddc2943/html5/thumbnails/18.jpg)
TW
FG C
omm
ercial Business School – L
essor’s Risk
18
TWFG Commercial Business School Lessors Risk Only
3. What is Ordinance or Law coverage?
It covers the increased cost of repairs or reconstruction due to changes in building codes that were not in place at the time of the original construction.
![Page 19: Lessors Risk Only](https://reader035.fdocuments.in/reader035/viewer/2022070423/5681675d550346895ddc2943/html5/thumbnails/19.jpg)
TW
FG C
omm
ercial Business School – L
essor’s Risk
19
TWFG Commercial Business School Lessors Risk Only
4. Name 3 critical items from the LRO Submission Checklist
![Page 20: Lessors Risk Only](https://reader035.fdocuments.in/reader035/viewer/2022070423/5681675d550346895ddc2943/html5/thumbnails/20.jpg)
TW
FG C
omm
ercial Business School – L
essor’s Risk
20
TWFG Commercial Business School Lessors Risk Only
4. Name 3 critical items from the LRO Submission Checklist
Dates and details of updatesComplete square footage informationComplete tenant listingVerification of preferred lease contract componentsVerifying that a current sprinkler cert has been issuedAnalysis of all additional property coverages needed
![Page 21: Lessors Risk Only](https://reader035.fdocuments.in/reader035/viewer/2022070423/5681675d550346895ddc2943/html5/thumbnails/21.jpg)
TW
FG C
omm
ercial Business School – L
essor’s Risk
21
TWFG Commercial Business School Lessors Risk Only
5. How will the carrier view the tenants’ operations in regards to acceptability of the risk?
![Page 22: Lessors Risk Only](https://reader035.fdocuments.in/reader035/viewer/2022070423/5681675d550346895ddc2943/html5/thumbnails/22.jpg)
TW
FG C
omm
ercial Business School – L
essor’s Risk
22
TWFG Commercial Business School Lessors Risk Only
5. How will the carrier view the tenants’ operations in regards to acceptability of the risk?
The carrier will likely only write the risk if all of the tenants are classes of business that the carrier would also write
![Page 23: Lessors Risk Only](https://reader035.fdocuments.in/reader035/viewer/2022070423/5681675d550346895ddc2943/html5/thumbnails/23.jpg)
TW
FG C
omm
ercial Business School – L
essor’s Risk
23
TWFG Commercial Business School Lessors Risk Only
Questions???