Special Multiperil Insurance (smp)
Coverage usually provided for large businesses in four areas:
- Section I (Property) The building (s) and contents are covered against either any peril (ALL RISKS basis) or only perils listed in Section I. It is to the advantage of the business to have coverage written on an ALL RISKS basis. Endorsements can be added for sprinkler leakage, business interruption, extra expense, water damage, rental loss, valuable records and papers, mercantile robbery and safe burglary, mercantile open stock burglary, glass and fine arts, or these items can be covered separately.
- Section II (Liability)�The insured is covered for actions or non actions that result in liability exposure arising out of ownership, use,possession and/or maintenance of the covered locations and structures. Also covered are the business's activities conducted by the insured whether at or from the covered locations and structures. Endorsements can be added to cover for medical payments, liability arising out of products and completed operations, and liability arising out of operation of a non owned automobile. Additional endorsements can be added to this section to broaden liability coverage.
- Section III (Crime)�Coverage for employee dishonesty, premises loss both inside and outside of the structure, forgery by depositions,paper currency that proves to be counterfeit, and money orders. The comprehensive DISHONESTY, DISAPPEARANCE, AND DESTRUCTION POLICY (3-D POLICY) and the BLANKET CRIME POLICY provide these coverages.
- Section IV (Boiler and Machinery)�Coverage for explosion of a boiler, engine, turbines, and/or pipes owned or under the control of the insured. Endorsements can be added to cover indirect and consequential losses resulting from accidents associated with the boiler and machinery expenses. The SMP has generally been replaced by the COMMERCIAL PACKAGE POLICY.
Popular Insurance Terms
Coverage for business risks including goods in transit, fire, burglary, and theft. A common example is the COMMERCIAL PACKAGE POLICY (CPP). ...
Specified requirements of minimum age and years of service to be met by an employee before the individual's benefits are vested. For example, under the ten year vesting rule, "n employee ...
Phrase used to describe a method of annuity payout that guarantees a specified number of years, regardless of whether an annuitant remains alive. ...
Coverage in the event that stock sent to others for processing is damaged or destroyed en route or at their premises except those perils specifically excluded. For example, this coverage ...
Extent of the loss caused by accidents. Used in predicting the dollar amount of losses upon which the premiums are based. ...
Latin phrase meaning "without which not," signifying a legal rule in tort and negligence cases. Under this rule, a plaintiff trying to prove that an injury was a direct result of a ...
Bond that provides additional security for a loan. ...
Inquiry conducted by a committee of the legislature of the State of New York in 1905 that looked at abuses of life insurance companies operating in the state. This study led to stricter ...
Provision for known claims due but not paid, known claims not yet due, and provision for incurred but not reported (IBNR) claims. The critical problem facing a casualty insurance company is ...
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