Property & Casualty Insurance License Exam Tips: Business Owners Policy

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 when writing a business owners policy are you will have the following six items included in every policy there may be more things but they will never be less than the following six items when writing a business owners policy prior to giving you the six I will always appear in this type of policy I want you to know that it's automatically assumed that anything explicitly or specifically excluded and policy well obviously not be covered so instead of saying that for each one just know that is like about each area of coverage if there is a specific exclusion it is not covered in Pacific excluding the names of the six things that you will find in every benefit source policy the first one will be building coverage and building coverage of the policy covers the value of appliances the building itself or pieces of equipment that are damaged or destroyed next after building coverage is personal property coverage under this policy you are ensuring agreed to pay the amount equal to the value of the businesses property or the property of another individual or organization that is in the care of business that either is damaged or destroyed is the result of any event on the third part of this business owners policy would be called an extra expense coverage the policy what you are agreeing to pay an amount equal to the amount that a business will need to continue operating a business can no longer function as the result of any event not specifically excluded by the policy I know if an individual in this case whose business was temporarily shut down due to Hurricane that pass through the area and this part of a policy cover his expenses while you can no longer carry on business because the power grid was down and other things like that his workers back continue to pay them and get them sent out help effect repairs in their customers homes as well so this particular part of the policy is important and help someone carry on their business when an event makes apostle Tim not to be able to function as they normally would the next area of coverage is liability coverage we are covering is the legal fees and/or damages that an insured business may incur as a result the organization's business activities so they are sued or they are ruled against in a court case then this part of the business owners policy will cover those expenses next is a medical expenses any employee about because of someone else and not associated with the business who is neither harmed or damaged in some way while on the businesses property so this is somebody does not live or work with the insured by is injured on the business is property as a result they are needing medical cover just part of the policy covers those medical expenses and then finally the last part of this policy it's called supplemental liability number for its been used the liability coverage cover any legal expenses or covering damages if the amount of legal expenses are damages exceed what is cover for the number 6 kicks in with a supplemental amount to cover the shortfall that wasn't covered under for so when writing your business owners policy say we'll always include v6 with the understanding that if it is specifically excluded then I'll be seeing you don't pay but everything else is covered from the building the personal property taxes due to loss of being able to conduct business liability medical expenses are those who are on the property and injured and finally supplemental liability