BU353 Chapter 18: Chapter 18.docx
Document Summary
First-party coverage of buildings, contents, and associated loss of use or income: fire and allied, marine, crime. Covers awards, settlements, and defense costs for injuries to third parties. Covers both property and liability risks in a single policy. Protects against loss caused by other parties; insurer usually can subrogate: commercial multi-peril, commercial automobile, boiler and machinery or equipment breakdown insurance (ebi, aircraft, surety bonds. Covers specified acts of employee dishonesty: financial guarantees. Provides mortgage guarantees, credit enhancement: general liability, employers" liability, medical malpractice professional liability, other professional liability, environmental liability, employment practices liability. Exposure diagrams are a useful method of describing the coverage provided by a particular policy. They do so by displaying how the contract apportions losses between the insured and the insurer. With a per occurrence deductible, the firm pays up to the deductible amount on each loss that is covered.
