FIN 512 Lecture Notes - Lecture 5: Burglary
Deductible in commercial insurance
- Does not differ from personal insurance
6 steps in risk management process
1) Determining objectives
2) identifying risks
3) evaluating potential losses
4) considering alternatives
5) implementing risk – management techniques
6) performing ongoing evaluation and review
Blanket Insurance
- provides coverage under a single limit for:
o 2 or more items ex. Home and its contents
o 2 or more locations
o A combination of items/locations
Two categories of loss or Damage
- 1) losses due to perils
- 2) losses due to dishonesty
o Theft, burglary, robbery
Types of Ocean Marine Coverage
1) Cargo
a. If goods shaped are damaged or lost
2) Hull
a. Covers the ship (ex. Collision)
3) Protection and indemnity
a. Damage to piers, docks, cargo
b. Illness or injury to passengers or crew
c. Fines and penalties
4) Freight
a. Loss of earnings to ship owners if goods are damaged or loss
Three Warranties when shipping goods at sea
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Document Summary
6 steps in risk management process: determining objectives, identifying risks, evaluating potential losses, considering alternatives, implementing risk management techniques, performing ongoing evaluation and review. Provides coverage under a single limit for: 2 or more items ex. Home and its contents: 2 or more locations, a combination of items/locations. Two categories of loss or damage: losses due to perils, losses due to dishonesty, theft, burglary, robbery. Types of ocean marine coverage: cargo, hull. If goods shaped are damaged or lost: covers the ship (ex. Collision: protection and indemnity, damage to piers, docks, cargo, fines and penalties. Illness or injury to passengers or crew: freight, loss of earnings to ship owners if goods are damaged or loss. Three warranties when shipping goods at sea: the vessel is seaworthy, vessel will not deviate from its course, voyage is for legal purposes (ex. 3 categories of theft: theft, without force, burglary, using force to gain entry, robbery, threaten force to take property.
