Question

The three Cause of Loss forms found in most commercial polices are the

Answer 1

The three Causes of Loss forms in commercial policies are Basic, Broad, and Special, which range from narrow to comprehensive coverage.

Step-by-step explanation:

The three Causes of Loss forms found in most commercial policies are the Basic, Broad, and Special form. The Basic form includes a narrow range of coverage, such as fire, lightning, explosion, and vandalism. The Broad form covers everything in the Basic form plus additional risks like falling objects and weight of snow.

The Special form offers the most comprehensive coverage, insuring against all risks of loss that are not specifically excluded.

Answer 2

The three Cause of Loss forms commonly found in most commercial insurance policies are the Basic Form (CP 10 10), Broad Form (CP 10 20), and Special Form (CP 10 30). The Basic Form covers specific named perils, the Broad Form extends coverage to additional perils, and the Special Form, an "all-risk" policy, provides the broadest protection, covering all risks of direct physical loss or damage except for exclusions.

Step-by-step explanation:

Commercial insurance policies commonly offer three Cause of Loss forms: the Basic Form (CP 10 10), Broad Form (CP 10 20), and Special Form (CP 10 30). The Basic Form (CP 10 10) provides coverage for specific named perils, such as fire, lightning, explosions, and certain natural disasters. Businesses opting for this form should be aware that coverage is limited to the listed perils.

Expanding on coverage, the Broad Form (CP 10 20) includes additional perils beyond those covered by the Basic Form. This extension broadens the scope of protection, offering businesses a more comprehensive safeguard against a wider range of potential risks.

For the most comprehensive coverage, businesses often turn to the Special Form (CP 10 30), also known as an "all-risk" policy. This form covers all risks of direct physical loss or damage to insured property, except for those specifically excluded. It is designed to provide the broadest protection, making it a preferred choice for many businesses seeking robust insurance coverage against a multitude of risks and perils.

In summary, understanding the differences between these Cause of Loss forms is crucial for businesses to make informed decisions based on their risk profiles and specific needs. While the Basic Form and Broad Form offer varying degrees of coverage, the Special Form stands out as the most comprehensive option, covering a wide range of perils unless explicitly excluded.

Question:

What are the three Cause of Loss forms commonly found in most commercial insurance policies, and how do they differ in terms of coverage?