This document discusses business income insurance, including definitions of key terms like business income, suspension, operations, and extra expense. It addresses topics like the insuring agreement, loss conditions, duties in the event of a loss, coverage limits, and optional coverages. Sample quiz questions test understanding of terms and coverages. The document also discusses causes of loss exclusions, coinsurance calculations, and case studies about recommending appropriate insurance for different business types.

1. Business IncomeBusiness Income
InsuranceInsurance
Chubb CommercialChubb Commercial
Insurance BasicsInsurance Basics

2. 2
Where’s Waldo?Where’s Waldo?

3. 3
Where’s Waldo?Where’s Waldo?
1. Where is the insuring agreement in1. Where is the insuring agreement in
the form?the form?

4. 4
Where’s Waldo?Where’s Waldo?
2. What does “suspension” mean?2. What does “suspension” mean?

5. 5
Where’s Waldo?Where’s Waldo?
3. What does “Business Income”3. What does “Business Income”
mean?mean?

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Where’s Waldo?Where’s Waldo?
4. What does Extra Expense mean?4. What does Extra Expense mean?

7. 7
Where’s Waldo?Where’s Waldo?
5. What does “operations” mean?5. What does “operations” mean?

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Business Income (And Extra Expense) CoverageBusiness Income (And Extra Expense) Coverage
FormForm
CoverageCoverage
Limits of InsuranceLimits of Insurance
Loss ConditionsLoss Conditions
Duties In The Event Of LossDuties In The Event Of Loss
Additional ConditionAdditional Condition
Optional CoveragesOptional Coverages
DefinitionsDefinitions

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Team AssignmentsTeam Assignments
Extra ExpenseExtra Expense
Additional Limitation—Interruption ofAdditional Limitation—Interruption of
Computer OperationsComputer Operations andand InterruptionInterruption
of Computer Operationsof Computer Operations
Civil AuthorityCivil Authority andand Alterations and NewAlterations and New
BuildingsBuildings
Extended Business IncomeExtended Business Income

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Clicker Quiz!Clicker Quiz!

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Clicker Quiz!Clicker Quiz!
1. Business income means net1. Business income means net
income that would have been earnedincome that would have been earned
and continuing normal operatingand continuing normal operating
expenses incurred, including payroll.expenses incurred, including payroll.

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Clicker Quiz!Clicker Quiz!
1. Business income means net1. Business income means net
income that would have been earnedincome that would have been earned
and continuing normal operatingand continuing normal operating
expenses incurred, including payroll.expenses incurred, including payroll.
TrueTrue

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Clicker Quiz!Clicker Quiz!
2. One option for business income2. One option for business income
insurance is “business income otherinsurance is “business income other
than rental value”.than rental value”.

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Clicker Quiz!Clicker Quiz!
2. One option for business income2. One option for business income
insurance is “business income otherinsurance is “business income other
than rental value”.than rental value”.
TrueTrue

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Clicker Quiz!Clicker Quiz!
3. “Operations” means your business3. “Operations” means your business
activities occurring at the describedactivities occurring at the described
premises.premises.

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Clicker Quiz!Clicker Quiz!
3. “Operations” means your business3. “Operations” means your business
activities occurring at the describedactivities occurring at the described
premises.premises.
TrueTrue

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Clicker Quiz!Clicker Quiz!
4. For extra expense, the period of4. For extra expense, the period of
restoration begins immediately afterrestoration begins immediately after
physical loss or damage.physical loss or damage.

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Clicker Quiz!Clicker Quiz!
4. For extra expense, the period of4. For extra expense, the period of
restoration begins immediately afterrestoration begins immediately after
physical loss or damage.physical loss or damage.
TrueTrue

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Clicker Quiz!Clicker Quiz!
5. “Suspension” can mean a slowdown5. “Suspension” can mean a slowdown
of business activities.of business activities.

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Clicker Quiz!Clicker Quiz!
5. “Suspension” can mean a slowdown5. “Suspension” can mean a slowdown
of business activities.of business activities.
TrueTrue

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Causes of Loss – Special Form ExclusionsCauses of Loss – Special Form Exclusions
Finished stockFinished stock
Radio or TV antennaRadio or TV antenna
Interference by strikersInterference by strikers
Loss of license, lease, or contractLoss of license, lease, or contract
Other consequential lossesOther consequential losses

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The next coverage parts….The next coverage parts….
Newly Acquired LocationsNewly Acquired Locations
LimitsLimits
Loss ConditionsLoss Conditions
Loss DeterminationLoss Determination
Resumption of OperationsResumption of Operations
Loss PaymentLoss Payment
CoinsuranceCoinsurance

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CoinsuranceCoinsurance
Determine coinsurance basis.Determine coinsurance basis.
Determine probable maximum loss.Determine probable maximum loss.
Select an amount of insurance andSelect an amount of insurance and
coinsurance percentage.coinsurance percentage.

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1. Determine coinsurance basis1. Determine coinsurance basis
Net incomeNet income
plusplus
Operating expensesOperating expenses as defined inas defined in
the policythe 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 theRepairing, rebuilding, or replacing the
propertyproperty
 Additional construction time for ordinanceAdditional construction time for ordinance
or lawor law
 Restoration of operationsRestoration of operations
 Normal salesNormal sales

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3. Select an amount of insurance and coinsurance3. Select an amount of insurance and coinsurance
percentage.percentage.
Refer to participant binder forRefer to participant binder for
calculations.calculations.

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Optional CoveragesOptional Coverages
Maximum Period of IndemnityMaximum Period of Indemnity
Monthly Limit of IndemnityMonthly Limit of Indemnity
Business Income Agreed ValueBusiness Income Agreed Value
Extended 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 optionPrepare to explain the option to ato a
prospectprospect!!
Identify characteristics of an accountIdentify characteristics of an account
that would make this option a goodthat would make this option a good
one.one.

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More stuff!More stuff!
DefinitionsDefinitions
EndorsementsEndorsements

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Movie and Popcorn TheatresMovie and Popcorn Theatres
How much coverage should MPTHow much coverage should MPT
purchase?purchase?
What endorsements are appropriate?What endorsements are appropriate?
Explain to MPT’s owners how muchExplain 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 coinsuranceRecommend a coinsurance
percentage.percentage.
Identify endorsements.Identify endorsements.

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The end!The end!
Questions?Questions?