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INLAND MARINE DEFINITIONS
Accounts Receivable Coverage
This coverage is used to reimburse you for customer accounts
that are rendered uncollectible because of loss by a covered peril.
Actual Cash Value Valuation
This valuation
method pays for the cost to repair or replace damaged property with
like kind and quality, less reasonable deductions for wear and tear,
deterioration and economic obsolescence.
Agreed Value
Valuation
This coverage is
used to remove the coinsurance requirement for covered property.
With it your company agrees that the amount of coverage purchased is
adequate, and any coinsurance requirements are waived if the limit
of insurance equals the agreed value.
Bailees Customers Goods Floater
This policy is used
to insure against loss to property of others that is in your
possession, regardless of your legal liability.
It is needed since standard Property and General Liability
policies limit or exclude exposures of this kind.
Basic Causes Of
Loss Coverage
This coverage is
used to provide protection for the following causes of loss:
fire, lightening, explosion, windstorm, hail, smoke (except
from agricultural smudging or industrial operations), aircraft,
vehicles, riot, civil commotion, vandalism, sprinkler leakage,
sinkhole collapse and volcanic action.
Blanket Insurance
This coverage
allows for a single limit of insurance to apply to two or more
property items at one location, or to two or more kinds of property
at several locations, instead of a specific amount applying to a
specific subject of insurance.
It allows you to shift property values with no impairment of
recovery, as long as the total amount of insurance carried complies
with the coinsurance requirement stated in the policy.
Broad Causes Of
Loss Coverage
This coverage is
used to provide protection for the following causes of loss: fire,
lightning, explosion, windstorm, hail, smoke (except from
agricultural smudging or industrial operations), aircraft or
vehicles, riot, civil commotion, vandalism, sprinkler leakage,
sinkhole collapse, volcanic action, breakage of glass, falling
objects, weight of snow, ice or sleet (except for damage to gutters,
downspouts or personal property outside of buildings), and limited
water damage.
Coinsurance
A policy may
contain a coinsurance clause requiring that the limit of coverage be
a minimum percentage (usually 80%) of the insurable value of your
property. If the amount
of insurance carried is less than what is required by this clause,
any claim payment may be reduced by the same percentage as the
deficiency. For example,
covered property worth $100,000 may require a minimum of 80%, or
$80,000, of coverage for compliance with the policy’s coinsurance
requirement. If only
$60,000 of coverage is carried (25% less than the required $80,000),
than any loss payment would be reduced by 25%.
Computerized
Equipment
This provision
extends your policy to include coverage for loss to electronic
equipment as specified in the form.
Deductible
The deductible
provision specifies the amount that will be deducted from any
payment made to you because of a covered loss.
Dies, Patterns And
Molds Floater
This policy is used
to cover your dies, molds and patterns or similar property while on
your premises, in transit or on the premises of others. It covers
when you, as a manufacturer or processor, send out dies, molds or
patterns to subcontractors in connection with your work.
Employees Tools
Coverage
This endorsement is
used to extend coverage to protect the tools of your employees while
used in their jobs. It is needed since their personal policies
exclude coverage for tools used in business.
Equipment Leased,
Rented Or Borrowed From Others
This coverage
provides automatic protection for unscheduled equipment that is
leased, rented, or borrowed from others as specified in the form.
Equipment Leased,
Rented Or Loaned To Others
This coverage
extends your policy to protect your scheduled equipment when it is
temporarily leased, rented, or borrowed by others.
Equipment Rental
Reimbursement
This coverage is
used for reimbursement of expenses you incur to rent substitute
equipment when such rental is made necessary by loss or damage to an
insured item caused by a covered peril.
Exhibition Floater
This policy is used
to provide coverage for equipment, stock or other property, while it
is publicly exhibited or displayed. Standard Property policies often
limit or exclude coverage for these exposures.
Fine Arts Floater
This coverage is
used to insure works of art or other items of historical value or
rarity including pictures, paintings, statuary, rare books, and
antiques. The policy protects against loss arising from any cause
not specifically excluded up to the limits specified for each
covered item.
Flood Insurance
This coverage is
used to provide protection against loss due to water damage arising
from flooding, surface water, tides, tidal waves, and the overflow
of any body of water.
Fungus, Rot And
Bacteria Coverage
This coverage is
used to pay for damage caused by fungus, wet rot, dry rot, or
bacteria that results from a covered cause of loss up to the limits
specified in the form. It also includes coverage for any resulting
loss of business income or extra expenses you may incur up to the
specified period of time stated in the form.
Installation
Floater
This policy is used
to cover materials and supplies during transit to, or installation
at, a covered job site.
Coverage ends when the contractor's or purchaser's interest ceases,
whichever occurs first.
Motor Truck Cargo Coverage
This policy is used
to insure specified property against direct loss while in-transit on
a covered vehicle. The
policy insures such property for the stated perils and within the
territorial limits as described in the form.
Ocean Marine Cargo
Coverage
This policy is used
to provide coverage for property you ship overseas while within the
described territory and for the limits and perils declared on the
form.
Replacement Cost
Valuation
This loss valuation
method pays for the cost to repair or replace damaged items with
like kind and quality without deduction for depreciation.
This is important since you could face a substantial loss if
you must replace property at today’s prices but receive only the
depreciated value of the property that was destroyed.
Salesmens Samples
Coverage
This policy is used
to insure against loss of samples or catalogs while in the custody
of your sales representatives or principals when they are acting in
the scope of their job description.
Scheduled Equipment
Coverage
This coverage is
used to insure scheduled items for the amount listed in the policy.
Additional equipment you wish covered must be reported to the
company for coverage to be effective.
Sign Floater
This insurance is
used to provide coverage for scheduled neon, fluorescent, automatic
or mechanical electrical signs or lamps listed in the policy.
Special Causes of
Loss Coverage
This coverage will
protect covered property against direct loss arising from any cause
not specifically excluded.
The advantage of this form is that the insurance company must
prove that a loss is specifically excluded in order to deny coverage
under the policy.
This policy is
designed to cover your mobile equipment while it is stored on
premises, in transit or at temporary locations or jobsites.
Larger equipment items are specifically scheduled with
separate amounts of insurance applying to each covered piece.
Miscellaneous smaller items are grouped under a single
blanket limit subject to a maximum value for any one item per loss.
Transportation Floater
This policy is used
to cover your property while in transit to you or while enroute to
your customer by common carrier.
The form provides coverage when a carrier's limit of
liability is exhausted, or when the carrier is not responsible
because loss is caused by a peril, or for limits not covered under a
released bill of lading.
Trip Transit
Coverage
This policy is used
to provide coverage for goods you ship on a one-time basis.
Valuable Papers and
Records
