1. My name is Diane and I’ll
be your instructor for
todays topic – Commercial
Property insurance.
Course Title: Insurance Fundamentals
Lesson: Lines of Business
Topic: Commercial Property
Our good friends DJ Definition & Yodel
will also be helping us out today. Yodels
will be popping in from time to time with
FYI’s and fun facts. DJ Def will keep us
clued in on Key Terms & Definitions.
Say Hello friends!
This
building
Is
Insured!
2. If I don’t know anything else, I sure know
Commercial Property insurance protects
businesses when disaster strikes, that’s for
sure! We’ve all seen that on the news from
time to time, right?
Lets look at the definition
and see what we can do.
Def Time!
DJ Definition…Spin That Beat!
Commercial Property insurance
covers any type of commercial
property. It financially protects
insureds from damage to their
building and contents, due to a
covered cause of loss. Insureds
have three different levels of
coverage they can chose from.
Those choices are Basic, Broad and
Special coverage. There is a little
about each of them that makes
each unique.
Commercial Property Insurance
3. Hey, take it easy! I said there were Basic, Broad, and Special
coverages and if you wouldn’t have interrupted me I would
have explained. Now, please shhhhh and let me define them.
Wohhhh, wait a minute – that is just too much, lets look
at that closer DJ – Did you just say there were three
different choices of Commercial Property Insurance?
What are they again, how does it work? DJ – we need to
get this story straight for our students!
4. Wardrobe
change! That’s
what I’m
talking about!
BASIC
fire, lightning,
explosion,
smoke,
windstorm,
hail, riot, civil
commotion,
aircraft,
vehicles,
vandalism,
sprinkler
leakage,
sinkhole
collapse, and
volcanic action
BROAD
fire, lightning,
explosion,
smoke,
windstorm,
hail, riot, civil
commotion,
aircraft,
vehicles,
vandalism,
sprinkler
leakage,
sinkhole
collapse,
volcanic action,
plus weight of
snow, ice or
sleet, water
damage and
collapse
SPECIAL
All Risk that are not
explicitly excluded
Small Medium Large
Best price,
covers a lot. Cost is higher but
not so bad
considering the
additional coverages
included.
Cost is up here too but gosh,
it covers everything unless
the insurance company says
it’s specifically NOT covered.
Seems maybe its worth it.
Ok, so simple definitions of Basic, Broad &
Special coverages are…oh, wait - please
remember this is a “fundamentals” course
so the information provided here is
intended to give you an understanding of
how things conceptually work. Stick with
us and you’ll find all the details you’ll ever
want to know about how everything
works together in later videos.
5. So things like fire, lightning, explosion, smoke,
windstorm, hail, riot, civil commotion, aircraft,
vehicles, vandalism, sprinkler leakage,
sinkhole collapse, and volcanic action are
called Perils. A peril in the insurance world
just means “cause of loss”.
In other words, if we take fire for example,
that would be the “cause of loss” that
resulted in a claim. Not so difficult huh?
When you break down all these wonky
insurance terms, things start to really make
sense.
There are so many more details
about Commercial Property
Insurance but many of them will
not make any sense until you get a
bit more under your fundamentals
belt. So, for now, focus on the
information in the next slide.
We’ll have plenty of time in the
future to dig in deeper.
6. Commercial Property Insurance financially protects insureds from damage to their
building and contents, due to a covered cause of loss. Coverages are offered on Basic,
Broad and Special Form
Basic, Broad and Special “cause of loss” forms vary depending on the range of cost
willing to spend and perils you wish to cover
Basic coverage form is less costly and protects you from fire, lightning, explosion, smoke,
windstorm, hail, riot, civil commotion, aircraft, vehicles, vandalism, sprinkler leakage,
sinkhole collapse, volcanic action
With Broad coverage form price increases slightly however gives broader coverage such as fire,
lightning, explosion, smoke, windstorm, hail, riot, civil commotion, aircraft, vehicles, vandalism,
sprinkler leakage, sinkhole collapse, volcanic action, plus weight of snow, ice or sleet, water
damage and collapse
Zippidy Do Da…Let’s recap just a little to refresh what we’ve
gone over in this fantastic topic!
7. Photo op, selfie style! You made it! Now
you know all the fundamentals of how
Commercial Property insurance works. I
don’t know about you but this stuff to me is
so neat! See you soon! Tootles!
Course Title: Insurance Fundamentals
Lesson: Lines of Business
Topic: Commercial Property
