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Ch. 30: Insurance - No. 7
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
Ch. 30: Insurance - No. 8
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
FIRE INSURANCE
terms of the policy. Typical limitations include:
“Friendly” Fires: The policy limits or excludes
coverage of fires burning in places designed for fire
(e.g., fireplaces); though, if the fire spreads from the
Valuation Limits: The policy covers only a certain
amount of loss regardless of the actual loss suffered.
Occupancy: The insured or an authorized tenant must
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
HOMEOWNER’S INSURANCE
Property Coverage: Protects the house, garage, other private
property from loss or damage due to fire, lightning,
theft, and other perils, and generally covers the expense
of dislocation due to damage to or destruction of the
rented premises.
Ch. 30: Insurance - No. 10
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
AUTOMOBILE INSURANCE
Collision Coverage: Covers damage to the insured’s car
in any type of collision (regardless of fault);
Comprehensive Coverage: Covers loss or damage to
the vehicle by fire, hail, vandalism, theft, etc.;
third party who drives the vehicle with the owner’s
permissions; and
Towing/Rental Coverage: Covers the cost of towing
the insured’s damaged vehicle and of a rental while the
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
BUSINESS LIABILITY INSURANCE
Comprehensive General Liability (“CGL”) Policy:
from claims resulting from its products, and may also
reimburse the manufacturer for any expenses related to
product recalls and the repair or replacement of defective
products.
employment on behalf of the insured. In some states,
workers’ compensation insurance is underwritten by the state.
Ch. 30: Insurance - No. 8
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
FIRE INSURANCE
terms of the policy. Typical limitations include:
“Friendly” Fires: The policy limits or excludes
coverage of fires burning in places designed for fire
(e.g., fireplaces); though, if the fire spreads from the
Valuation Limits: The policy covers only a certain
amount of loss regardless of the actual loss suffered.
Occupancy: The insured or an authorized tenant must
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
HOMEOWNER’S INSURANCE
Property Coverage: Protects the house, garage, other private
property from loss or damage due to fire, lightning,
theft, and other perils, and generally covers the expense
of dislocation due to damage to or destruction of the
rented premises.
Ch. 30: Insurance - No. 10
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
AUTOMOBILE INSURANCE
Collision Coverage: Covers damage to the insured’s car
in any type of collision (regardless of fault);
Comprehensive Coverage: Covers loss or damage to
the vehicle by fire, hail, vandalism, theft, etc.;
third party who drives the vehicle with the owner’s
permissions; and
Towing/Rental Coverage: Covers the cost of towing
the insured’s damaged vehicle and of a rental while the
Clarkson et al.’s Business Law: Commercial Law for Accountants (1E)
BUSINESS LIABILITY INSURANCE
Comprehensive General Liability (“CGL”) Policy:
from claims resulting from its products, and may also
reimburse the manufacturer for any expenses related to
product recalls and the repair or replacement of defective
products.
employment on behalf of the insured. In some states,
workers’ compensation insurance is underwritten by the state.
