Question

Under the commercial property coverage part of the cpp, the cause of loss - broad form insures against? a. risks of direct physical loss unless specifically excluded b. a list of basic named perils c. a list of basic and extended coverage perils d. earthquake only

1) risks of direct physical loss unless specifically excluded
2) a list of basic named perils
3) a list of basic and extended coverage perils
4) earthquake only

Answer 1

The Cause of Loss - Broad Form under the Commercial Property Coverage part of the CPP insures against 3) a list of basic and extended coverage perils, not including earthquakes.

Step-by-step explanation:

Under the Commercial Property Coverage part of the Commercial Package Policy (CPP), the Cause of Loss - Broad Form insures against a list of basic and extended coverage perils.

This includes a range of potential risks that can lead to direct physical loss or damage to property, but it is not as comprehensive as a special form coverage, which covers all risks of direct physical loss unless specifically excluded.

The Broad Form is a middle ground between the Basic Form, which only covers a list of named perils, and the Special Form. It typically includes the basic named perils, like fire and theft, and extends to cover additional risks such as falling objects, the weight of snow, ice, or sleet, and water damage from plumbing, amongst others. It does not include earthquake coverage; that is usually offered as a separate policy or endorsement.