Info about Insurers
Differences-in-Conditions Insurance
Even when all of the previously mentioned property coverage’s are considered, a risk manager could find gaps or limitations in the portfolio of policies. Ideally, the risk manager would like to fill the gaps and tailor in the portfolio to meet the specific property coverage needs of his/her organization. One practical solution is the differences in conditions insurance coverage, which is not part of the ISO commercial lines program.
Differences-in-conditions insurance (DIC) supplements a basic property insurance contract with one that covers additional perils. DIC is not excess insurance; it covers losses not covered by the basic insurance coverage. DIC can be customized to meet the needs of the insured, typically it provides all risks protection (like the special causes-of-loss form discussed earlier) subject to certain exclusions that include fire and other perils covered under the basic insurance coverage. A major attraction of DIC is that the insured has more flexibility in establishing the policy limit because the contract does not usually contain a coinsurance clause.
Umbrella Liability Insurance:
Umbrella liability insurance, which is not standardized and varies greatly depending on the insurer, provides two types of protection. First, umbrella insurance is excess insurance over the insured’s traditional liability insurance policies of all sorts: general liability, workers’ compensation, automobile liability, aviation liability, and others. Second, umbrella insurance covers sources of liability not covered under the insured are other policies, subject to a minimum deductible of some large amount (say, $25,000 per occurrence). Illustrations might be contractual liability not covered under the primary CGL policy or liability for invasion of privacy in advertisement. The maximum limit of liability under the umbrella policy is usually at least $1 million per occurrence and may range as high as $25 million or more per occurrence.
Credit Insurance:
Credit insurance protects the insured business against abnormal losses on accounts receivable. Credit insurance differs from accounts receivable insurance, which covers abnormal bad-debt losses suffered by an insured because records are damaged or destroyed by any peril not specifically excluded. Credit insurance applies when the records are not destroyed, but debtors for some reason fail to pay what they owe by the due date. Only firms such as manufacturers and wholesalers that sell to other businesses are eligible for this insurance.
Export Credit Insurance:
Export credit insurance protects exporters against credit risks (insolvency of the buyer) and political risks (in-convertibility of foreign currency to dollars and cancellation or restriction of export or import licenses) on sales to buyers in friendly foreign countries. The Foreign Credit Insurance Association, an unincorporated association of private insurers, issues this insurance in cooperation with the Export-Import Bank of the United States, a government agency. The Export-Import Bank insures the political risks and re-insures the credit risks under all the policies written.
Title Insurance:
Title insurance reimburses the insured for any losses that may be incurred if the insured’s title to real estate proves to be defective. Title insurers search records in their own offices and other sources and protect the insured against existing defects that they fail to discover. Only one premium is paid at the commencement of the insurance, which continues until the insured’s interest in the property ceases. Some states and counties operate a Torrens system, under which a hearing is held to discover defects. If no defects are discovered, the title is registered, and the owner is, except under certain circumstances, assured of a clear title. The registration fee includes a contribution to a fund that is used to indemnify person who can prove later that they have some right that existed prior to the registration
Aviation Insurance:
Aviation insurance, a rapidly growing field, includes a wide variety of contracts. Like automobile insurance, aviation insurance includes both property and liability insurance on the aircraft.