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| The amount of the policy premium used at the time
of a cancellation or expiration relative to the policy
term. For example, if the policy term is one year then
the earned premium at the six month point is 50% of
the total premium. This is not an indicator of how much
you'll get back if you cancel the policy because the
total premium was partially based on the term. |
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| Protects against damage by earthquakes and earth movement.
Deductibles are typically a percentage of the property
value. |
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| The first day of a policy term. Denotes the beginning
of the insurance coverage. |
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| Electronic
Data Processing (EDP) Coverage
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A Standard property insurance policy leaves something
to be desired in addressing special EDP-related exposures.
Electronic data processing equipment and its software
is particularly susceptible to damage from electrical
or magnetic disturbance and changes in temperature or
humidity -- perils which are excluded in a standard
"special" perils property policy. Except for prepackaged
software programs, which are typically covered on an
actual cash value basis, coverage for programs and data
in a standard property policy is essentially limited
to replacement with blank tapes or diskettes plus transcribing
expense. Finally business interruption coverage in connection
with damaged EDP Media {not equipment} is limited to
60 days from the date of loss or the time when the other
damaged property is repaired, whichever is longer. Therefore,
if the building repairs are complete, but normal operations
cannot resume because replacement computer programs,
data or media are not readily available, an uninsured
business interruption loss may result.
The best way to resolve these coverage inadequacies
for EDP exposures is to buy a special EDP policy. Typically,
EDP policies provide "special" peril coverage similar
to that provided by "special" property forms, PLUS coverage
for all electrical and magnetic damage, mechanical breakdown
and often temperature and humidity changes as well.
Some insurers include these perils in the basic form,
while others make them available by endorsement for
an additional premium. Usually these broader coverages
are subject to a higher deductible as well. Valuation
can be on either a replacement cost or actual cash value
basis, and coverage may be available on a blanket as
well as a scheduled basis. Media coverage includes the
cost to reconstruct software developed in-house {subject
to the limit of liability selected for the coverage},
if necessary.
Perhaps most importantly, an EDP policy will respond
appropriately to extra expense or income loss from the
loss of EDP equipment, programs and data, provided that
these coverage options in the policy have been elected
and adequate limits of liability have been established. |
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| In employee benefits such as employer provided health
and life insurance, the eligibility period is the time
alloted for a new employee to enroll without having
to prove insurability through health examinations. Once
the the eligibility period has passed, an employee may
be denied coverage based on a physical examination. |
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| Employee
Benefits Plan Liability Coverage
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Protects the insured employer against claims by employees
or former employees resulting from negligent acts or
omissions in the administration of the insured's employee
benefits programs.
The term "employee benefits programs" is defined to
include group life insurance and group accident and/or
health insurance; profit sharing plans; employee stock
subscription plans; and workers' compensation, unemployment
insurance, social security benefits, disability benefits,
etc.
Coverage is intended to extend to the "administration"
of these plans, including counseling employees, interpreting
employee benefits programs, handling records, enrolling/terminating/cancelling
employees in specified plans on a timely basis, etc. |
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| Employee
Dishonesty Coverage |
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Employee dishonesty coverage protects an employer
from financial loss due to the fraudulent activities
of one or more employees. The coverage includes protection
for loss of money, securities, and other property of
the insured.
Some scheduled policies are still available, but the
majority are written on a blanket basis. This provides
coverage for all employees, subject to the policy definitions.
The limit of liability is "per loss" and is applied
on an "occurrence" basis. All acts involving the same
employee or group of employees is considered one occurrence. |
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| Employment
Practices Liability Coverage
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Protects the corporation, directors & officers and
employees for claims resulting from wrongful termination,
discrimination, sexual harassment, wrongful discipline
and failure to employ or promote.
Whether you are right or wrong in the eyes of the jury,
the typical defense costs alone average $100,000 - $200,000
per case! |
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| A document which changes or alters the basic insurance
policy. |
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| Covers various kinds of equipment against all potential
risks. |
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| Errors
& Omissions Coverage |
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| Coverage for liability resulting from errors or omissions
in the performance of professional duties. Applicable
as a general rule to professional business activities
such as banking, accounting, law, insurance and real
estate. |
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| A type of insurance which covers all or a portion
of a loss which exceeds an agreed amount. Excess policies
usually do not come in to effect until the primary insurance
limit has been reached. Excess policies provide higher
limits and offer protection against very large losses. |
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| If your building was rendered untenantable by fire
or any other insured peril, it would probably be necessary
to secure other quarters to continue your business operations.
However, the use of such buildings would undoubtedly
involve many extra expenses, such as rent, installation
of telephones, etc. Extra Expense insurance covers such
expenditures over and above your normal monthly expenses. |
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