1. Commercial Property Insurance – Continued Chapter 10 Business Property Insurance Appendix C Building and Personal Property Coverage Form

2. Exclusions Vary by Policy Form Broad Form Exclusions (Appendix C – pages 715-718 ) Ordinance or law Earth movement Governmental action Nuclear hazard Off-premises services War or military action Water Electrical current Explosion of steam boilers Mechanical breakdown Special exclusions: –Specified coverage forms

3. Consequential Property Coverage Business Income Coverage (BIC) Business interruption Net income Continuing normal operating expenses incurred, including payroll Extra expense Causes of loss Direct physical loss or damage to property described in declarations Coinsurance Monthly limit of indemnity Maximum period of indemnity Payroll endorsements

4. Business Income Coverage Example (Page 250) Chicago flood of 1992 Expected net income for April 1992 $45,000 Actual net income in April 1992 ($72,000) Value of loss$117,000

5. Other Property Coverage Commercial Crime Coverage Inland Marine Boiler and Machinery Businessowners Policy

6. Inland Marine Insurance Development Regulatory restrictions on other coverages Could offer all-risk coverage Less restrictive regulations

7. Nationwide Marine Definition Imports Exports Domestic shipments Instrumentalities of transportation and communication (bridges, tunnels, piers, power lines, television towers) Various types of individual personal property (jewelry, furs, instruments) Various types of business property (mobile equipment, animals, computers)

8. General Characteristics of Inland Marine Policies Coverage for property in transit Loss exposures covered Physical loss Business income and extra expense Broad coverage of perils Valuation provisions Actual cash value, replacement cost, selling price, invoice value or agreed value

9. Global Property Exposures Laws and regulations in foreign countries Data collection and analysis Exchange rate risk International property-liability coverages