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 The SMP has generally been replaced by the COMMERCIAL PACKAGE POLICY.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
Break in commercial activities due to the occurrence of a peril. Coverage against business interruption by various named perils can be obtained through insurance. ...
Financial instruments whose principal and income are not established in advance according to contractual terms set forth in the financial instruments document. Both the principal and income ...
Federal law comparable to state workers compensation statutes setting out liability of railroads for work-related injuries or death of their employees. Railroad employees are not covered by ...
Policies that have been sold to and paid for by an insured, but not yet delivered to the insured. ...
Same as term Excess of Loss Reinsurance: method whereby an insurer pays the amount of each claim for each risk up to a limit determined in advance and the re-insurer pays the amount of the ...
Bonds that are sold at discount from their maturity value with the interest compounding and paid at the bond's maturity date. Even though these bonds do not pay interest until maturity, the ...
To transfer a risk from an insurance company to a reinsurance company. ...
Individual prohibited under the employee retirement income security act of 1974 (erisa) from conducting transactions with a trust plan. The prohibition is intended to prevent a conflict of ...
Effort by an individual to continue to receive disability income benefits by taking a continuing sickness or injury. ...
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