Commercial property insurance

Commercial property insurance is carried out according to a scheme, in many respects similar to the individual property insurance scheme. A commonly used form is the Construction and Personal Property Insurance Form (BPP). This form allows the business owner to include in policy buildings, fixtures, machinery, and equipment, as well as personal property used in the business and the personal property of others for which the business owner is responsible. … Insurance can also be extended to cover newly acquired property, property in newly acquired premises, securities and records, property temporarily outside of office facilities, and outdoor property such as fences, signs, and antennas.

Direct losses.

BPP insurance can be issued on a scheduled basis when certain properties are listed and insured, or generally when properties in multiple locations can be insured for a single amount.

The perils covered by BPP are listed in the policy. Insurance coverage for all risks is also recorded subject to the specified exceptions.

Losses can be paid to cover the cost of PPU replacement once approved. Otherwise, the repayment is based on the actual cash value adjusted for depreciation.

Personal property coverage for companies with ever-changing value is available in report form. The business owner reports the cost to the insurer every month and pays the premiums based on the declared values. In this way, only the really necessary insurance is purchased.

Indirect losses

A completely different branch of the insurance business has developed to make sure losses that are indirectly the results of one among these dangers.. Business income insurance is an excellent example of this type of insurance. The insurer undertakes to reimburse the insured for lost profits or fixed costs incurred as a result of direct damages. For example, a retail store may catch fire and be completely closed for one month and partially closed the following month. If the fire had not occurred, sales would have been much higher and therefore significant profits would have been lost. Additionally, you must continue to pay fixed costs such as wages, taxes, and maintenance. Business income policy will respond to these losses.

Forms of indirect insurance include the following:

(1) contingent business income insurance, designed to cover indirect losses if a major supplier or customer’s plant is disrupted, resulting in reduced orders or reduced supply, resulting in at the closing of the insured business,

(2) supplemental expense insurance, which covers additional costs associated with supplemental costs, such as rental of replacement facilities after a disaster, and

(3) rental and rental value insurance,

which covers rental losses that an apartment building owner could suffer if it collapses. Rental income insurance pays for rent lost as a result of the risk of destruction of the owner’s property that has been rented to others.

Marine insurance

Marine insurance is transportation insurance. After sea travel insurance was developed, it was a natural step to offer land travel insurance. This type of insurance is called national marine insurance. In many forms of politics, the distinction between inland and marine waters of the ocean has disappeared; They generally cover the goods from the time they leave the shipper’s warehouse, even if that warehouse is a considerable distance from the nearest seaport until they arrive at the buyer’s warehouse, which may also be located inland.

Ocean marine insurance

Maritime contracts are designed to hide four main sorts of ownership interests:

(1) ship or hull,

(2) cargo,

(3) freight revenue to be received by the shipowner,

(4) liability for negligence. sender or carrier.

CASCO insurance covers the losses of the ship itself due to specified dangers. There is generally a provision that the hull of a seagoing vessel should only be covered within certain geographical limits. Freight insurance is usually formalized based on an open contract, according to which deliveries, both incoming and outgoing, are automatically covered by the interests of the sender, who periodically reports on the recorded values and pays a premium based on these prices. With the assistance of a negotiable open freight certificate attached to the bill of lading, coverage is automatically transferred to whoever has legal title to the products as legal title to the goods as they pass from the seller to the buyer.

Freight revenue can be secured in several ways. If the shipper is required to pay the carrier’s freight regardless of whether the goods are delivered, the value of the freight is declared as part of the value of the goods and insured as part of that value. If freight revenue is dependent on the safe delivery of the goods, the carrier will ensure the freight under normal insurance coverage.

The main clauses or clauses that are reasonably standardized are

(1) a risk clause,

(2) a “reduction” or RDC clause,

(3) a “no particular average” clause, or FPA clause,

(4) a general average clause,

(5) a legal claims and employment clause,

(6) a waiver clause,

(7) coinsurance,

(8) express and implied warranties.

Each of them will be discussed in turn.


Although there is no coinsurance clause per se in the marine policy, claims are handled as if there were a 100 percent coinsurance clause. Therefore, if the insured receives coverage equal to 50 percent of the actual replacement value of the property, only 50 percent of any partial loss can be reimbursed.


In the field of marine insurance, there are two main types of guarantees to consider: explicit and implicit. Express warranties are promises written in a contract. There are also three implied warranties, which are not written in writing but are nonetheless binding on the parties.

Examples of express warranties are the FC&S warranty and the Strike, Riot, and Civil Unrest warranty. The FC&S or “no catch and confiscation” guarantee excludes war as a cause of loss. The Strike, Riot, and Civil Unrest Guarantee state that the insurer will not incur any losses as a result of strikes, strikes, riots, or other labor disturbances. Three implicit guarantees apply to the following conditions: navigability, anomaly, and legality.

According to the first, the shipper and the carrier ensure that the ship will be in a seaworthy condition when it leaves port, in the sense that its hull will be in good condition, the captain and crew will be qualified and supplies and other equipment will be available. necessary for the crossing. Losses caused by poor seaworthiness are not covered by insurance. Under the Departure Guarantee, the ship cannot deviate from its intended course except to save lives. Clauses excluding implied warranties of seaworthiness or deviations may be attached to the ocean maritime policy. However, the implied warranty of legality cannot be canceled. Under this warranty, if the voyage itself is illegal under the laws of the country in which the ship is sailing, the insurance will be canceled.

National maritime insurance

Although there are no standardized forms in ground transportation insurance, most contracts follow a typical pattern. They are typically written based on named hazards, covering traffic hazards such as collision, derailment, flooding, tornadoes, fires, lightning, and hurricanes. Policies generally exclude losses from theft, strikes, riots, civil unrest, wars, supply delays, loss of markets, illegal trade, or leakage and breakdown.

The scope of inland shipping is expanding significantly due to the “float” policy. They are used to ensure certain types of movable property, regardless of whether it is actually in transit. Business Floater policies are purchased by jewelers, laundries, dry cleaners, tailors, upholsterers, and others who own someone else’s property at the time of service. Personal property floats are used to comprehensively cover any personal property that is owned by an individual. They may also cover the property of visitors or property of servers located in the territory of the insured. They do not include certain types of property for which other contracts have been developed, such as automobiles, airplanes, motorcycles, animals, and commercial and professional equipment.

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