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This information relative to insurance is intended for informational purposes
only. The terms of the applicable policy determine the actual scope of
the coverage. Please contact an insurance specialist for more detailed
information.
Fequently Asked Questions
1. About Class Act Insurance Services
2. Personal Lines
3. Commercial Lines
4. Professional Lines
5. Workers Compensation
1. About Class Act Insurance Services-Top
of page
2. Personal Lines-Top
of page
3. Commercial Lines-Top
of page
4. Professional Lines-Top
of page
5. Workers Compensation.-Top
of page
1. About Class Act Insurance Services
1a. Can I cancel coverage at any time?-Top
of page
Yes, but some cancellations might cause you to pay a percentage of your
premium as a penalty. This depends on the reason for your cancellation
and the type of policy you have.
1b. How do I report a claim or circumstance? -Top
of page
Fax the claim or details of the circumstance to (619) 584-7407, Attention:
Marco De Julio or call (619) 795-8337. If you don’t get a response
within 24 hours please call.
1c. How do I place a piece of business? -Top
of page
Please complete the appropriate web form and one of our agents
will contact you within one business day. Click this link: http://www.classactinsurance.com/quotes.htm
1d. How long does it take to get a quote? -Top
of page
Quoting time can vary depending on the type of policy. We are committed
to quote turnaround within 1-3 business days for personal lines and
3-7 business days for commercial lines.
1e. What are my billing options? -Top
of page
Class Act Insurance Service does have premium financing available for
personal lines and commercial lines, ask your agent.
1f. Where do I mail my premium monthly payments?-Top
of page
Note: Down payments must be mailed to:
Class Act Insurance Service
P.O. Box 711509
Santee, Ca 92072.
Monthly premium payments are mailed to:
PREMIUM FINANCING SPECIALISTS OF CALIFORNIA, INC.
1400 E. Southern Avenue, Suite 240
Tempe, AZ 85282
Phone (480) 820-4435
Fax: (480) 820-9717
2. Personal Lines
2a. What does "HO" stand for?-Top
of page
Different types of homeowner’s policy forms are referred to as
HO-1, HO-2, HO-3, and so forth. There are seven basic kinds of home
insurance policies and they're pretty much the same regardless of where
you live (except for Texas). They tend to be defined by the perils they
cover:
HO-1- Basic homeowners. Covers your dwelling and personal
property against losses from 11 types of perils: fire or lightning;
windstorm or hail; explosion; riot or civil commotion; aircraft; vehicles;
smoke; vandalism or malicious mischief; theft; damage by glass or safety
glazing material that is part of a building; and volcanic eruption.
HO-2- Basic homeowners plus. Covers dwelling and personal
property against 11 perils plus six more: falling objects; weight of
ice, snow or sleet; three categories of water-related damage from home
utilities or appliances; and electrical surge damage.
HO-3- Extended or special homeowners. Covers 17 stated
perils plus any other peril not specified in your policy, except for
flood, earthquake, war, and nuclear accident.
HO-4- Renter’s coverage. Covers only personal
property from 17 listed perils.
HO-5- All risk coverage for building and personal property.
This policy form isn't sold very often.
HO-6- Condominium coverage. Covers personal property
from 17 listed perils along with certain building items in which the
unit owner might have an insurance interest.
HO-8- Basic older home. Covers dwelling and personal
property from 11 perils. Differs from HO-1 in that it covers repairs
or actual cash values - not rebuilding costs. This is for homes where
some historic or architectural aspects make the home's replacement cost
significantly higher than its market value.
What is Fire Legal Liability coverage?
Fire Legal Liability provides coverage against liability for fire damage
to premises rented to the named insured or temporarily occupied by the
named insured with the owner's permission. Most Commercial General Liability
policies provide a separate limit of $50,000 to cover this exposure.
2b. What is an Umbrella Policy? -Top
of page
An umbrella policy provides additional limits of insurance over and
above underlying coverage are found on a General Liability, Automobile
or Workers' Compensation policy. If there is a claim, the underlying
policy will pay its limits of liability and the umbrella policy coverage
would then be activated.
2c. What is the difference between Replacement Cost Value (RCV) and
Actual Cash Value (ACV)?-Top of page
Replacement Cost is the current cost to replace property up to the policy
limits. Actual Cash Value is the replacement cost less depreciation.
2d. What is a peril? -Top
of page
A peril is the cause of a possible loss (examples include fires or windstorms).
2e. What is Co-insurance? -Top
of page
In property insurance, co-insurance is a clause under which the insured
shares in losses to the extent that he/she is underinsured at the time
of a loss.
2f. What is property insurance? -Top
of page
Property insurance protects your buildings and equipment, stock, furniture
and fixtures. Some policies include equipment breakdown and business
income coverage. Basic property insurance will generally cover your
business for losses in the event of a fire or lightning strike and will
pay the cost of removing property to protect it from further loss. Additionally,
a standard small business insurance policy will usually cover losses
from windstorm, hail, explosion, riot and civil commotion and damage
caused by aircraft, automobiles or vandalism.
2g. What is General Liability? -Top
of page
General Liability provides coverage for other individuals who are on
your property and/or exposed to your operations. General Liability insurance
covers claims of bodily injury or other physical injury or property
damage. If you have only one form of business insurance, it is most
likely Commercial General Liability. CGL policies usually cover claims
in four basic categories of business liability:
2h. What exactly does the term "bodily injury" in a liability
insurance policy mean?-Top
of page
This refers to the injury, sickness, disease, or even death, of any
person that occurs during the policy period.
2i. What is an exclusion?-Top
of page
An exclusion is a clause in the insurance policy that describes what
is not covered. It is very important to always review the exclusions
of a policy due to the coverage limitations.
2j. What does "Limits of Liability" or "Limits of coverage"
mean?-Top
of page
This is the amount of money that the insurance company will pay for
claims. Insurance policies have different types of limits; some limits
are for each event, some are for each claim, and some are the total
aggregate of all claims during the policy period.
2k. Is a deductible paid only once?-Top
of page
No, each claim usually has a separate deductible.
2l. What is Additional Insured?-Top
of page
This endorsement extends coverage to your client under your policy in
the event that they are sued as a result of work you do on their behalf.
2m. What is a certificate of insurance?-Top
of page
A certificate of insurance is a widely accepted form that provides evidence
of insurance coverage to other people.
3. Commercial Lines
3a. General Liability Vs Professional Liability-Top
of page
| |
Provides coverage for liability arising out
of: |
Provide coverage for liability arising out
of: |
| Coverages |
Accidents occurring on or away from the premises
Bodily injury or property damage
Personal or advertising injury* Goods or products
made or sold by the insured |
Wrongful conduct in the rendering of professional
services and/or the failure to render professional services
Claims based on tort and contract principles. |
| |
Multiple limits apply |
Usually subject to split limits |
| Limits |
General aggregatePersonal and advertising injury
limitEach occurrence limitProduct and completed operations limitFire
damage limitMedical expense limit |
Example: $1,000,000/$1,000,000(Occurrence/aggregate) |
| Forms |
Polices are usually written on
an occurrence form |
Policies are usually written on a claims-made
and reported basis |
3b. How much liability insurance do I need?-Top
of page
Due to the growing frequency of professional negligence suits and the
sympathies of courts, professional people are now held more accountable
for their mistakes than ever before. It is difficult, if not impossible
to say how much insurance you might need in the event of an actual claim.
However, as a rule, most of your client companies will require minimum
limits of $1,000,000 in General Liability and $1,000,000 in Professional
Liability coverage. The amount of insurance needed by your company depends
on your specialty, the size of your company, and the size and type of
your largest client companies.
3c. What is General Liability? -Top
of page
General Liability provides coverage for other individuals who are on
your property and/or exposed to your operations. General Liability insurance
covers claims of bodily injury or other physical injury or property
damage. If you have only one form of business insurance, it is most
likely Commercial General Liability. CGL policies usually cover claims
in four basic categories of business liability:
• Bodily Injury
• Property Damage
• Personal Injury (including Slander or Libel)
• Advertising Injury
In addition to covering the claims listed above, Commercial General
Liability policies also cover the cost to defend or settle claims –
even if the claims are fraudulent.
Business Liability Insurance Keeps You In Business.
3d. What is an Occurrence Policy?-Top
of page
A covered claim must occur during the policy period but it does not
matter when the claim is reported or made.
3e. What does "personal and advertising injury" mean in general
liability insurance coverage?-Top
of page
Personal and advertising injury means being responsible for libel, slander
or any defamatory or disparaging material, or a publication or utterance
in violation of an individual's right of privacy; wrongful entry or
eviction, or other invasion of the right of private occupancy; false
arrest, wrongful detention, false imprisonment, or malicious prosecution;
which occurs during the policy period.
3f. What does Bodily Injury mean in General Liability coverage?-Top
of page
Bodily injury means bodily injury, sickness or disease sustained by
any person which occurs during the policy period, including death at
any time resulting there from.
3g. What exactly does the term "bodily injury"
in a liability insurance policy mean?-Top
of page
This refers to the injury, sickness, disease, or even death, of any
person that occurs during the policy period.
3h. What does Property Damage mean in General Liability coverage?-Top
of page
Physical injury to or destruction of tangible property which occurs
during the policy period, including the loss of use thereof at any time
resulting there from, or loss of use of tangible property which has
not been physically injured or destroyed provided such loss of use is
caused by an occurrence during the policy period.
3i. What does Products/Completed Operations mean? -Top
of page
Products/Completed Operations refers to the liability coverage for damages
caused by your operation or products after the point at which you no
longer have control of them.
3j. What is Fire Legal Liability coverage?
-Top of page
Fire Legal Liability provides coverage against liability for
fire damage to premises rented to the named insured or temporarily occupied
by the named insured with the owner's permission. Most Commercial General
Liability policies provide a separate limit of $50,000 to cover this
exposure.
3k. What is the difference between Replacement Cost Value (RCV) and
Actual Cash Value (ACV)? -Top
of page
Replacement Cost is the current cost to replace property up to the policy
limits. Actual Cash Value is the replacement cost less depreciation.
3l. What is a peril? -Top
of page
A peril is the cause of a possible loss (examples include fires or windstorms).
3m. What is property insurance? -Top
of page
Property insurance protects your buildings and equipment, stock, furniture
and fixtures. Some policies include equipment breakdown and business
income coverage. Basic property insurance will generally cover your
business for losses in the event of a fire or lightning strike and will
pay the cost of removing property to protect it from further loss. Additionally,
a standard small business insurance policy will usually cover losses
from windstorm, hail, explosion, riot and civil commotion and damage
caused by aircraft, automobiles or vandalism.
3n. What does "Limits of Liability" or "Limits of coverage"
mean?-Top
of page
This is the amount of money that the insurance company will pay for
claims. Insurance policies have different types of limits; some limits
are for each event, some are for each claim, and some are the total
aggregate of all claims during the policy period.
3o. What is Business Interruption/Extra Expense coverage? -Top
of page
Business Interruption/Extra Expense coverage provides coverage for income
loss and the expense of establishing a temporary site during repairs
due to damages related to a fire or compensable loss.
3p. What is Business Income Coverage (Time Element)? -Top
of page
Business Income Coverage provides coverage for loss of earnings and
ongoing expenses when operations are curtailed or suspended due to property
damage resulting from a covered cause of loss.
3q. What is Co-insurance? -Top
of page
In property insurance, co-insurance is a clause under which the insured
shares in losses to the extent that he/she is underinsured at the time
of a loss.
3r. What is Business Personal Property Insurance (Contents)?-Top
of page
Business Personal Property Insurance provides coverage for furniture,
fixtures, merchandise, materials, and all other personal property owned
by you and used in your business. Coverage can be Replacement Cost Value
(RCV) or Actual Cash Value (ACV).
3s. How does liability insurance coverage protect my small business?-Top
of page
There are many different types of third-party liabilities to be covered
for a business. Business liability insurance may protect you from claims
arising from someone's bodily or personal injuries. Other items that
could be covered are damage to the property of others, products-completed
operations, advertising, premises operations, fire, legal liability
and related legal defense costs. For instance, liability insurance will
not only pay the cost of covered damages but also the attorney fees
and other costs associated with your defense.
3t. Is a deductible paid only once?-Top
of page
No, each claim usually has a separate deductible.
3u. How much property insurance does my small business need?-Top
of page
Property insurance can be purchased on the basis of the property's actual
value (the replacement cost minus depreciation); its replacement value
(the cost of replacing the item without deducting for depreciation);
or an agreed-upon amount.
3v. What is employment practices liability insurance or EPLI?
-Top of page
Employment practices liability insurance (EPLI) is designed to protect
employers against claims of employee sexual harassment, discrimination,
wrongful termination and other employment-related litigation. Many insurance
companies offer employment practices liability insurance as part of
their business owners' policy or as a stand-alone policy.
3w. Why do I need certificates of insurance from sub-contractors?
-Top of page
An audit may require you to show proof that sub-contractors had their
own insurance coverage. The sub-contractors' certificates of insurance
will prevent you from being charged for their exposure.
3x. Are my independent contractors covered?-Top
of page
Independent contractors can be added by endorsement, subject to the
insurance company underwriter approval.
3y. What is Additional Insured?-Top
of page
This endorsement extends coverage to your client under your policy in
the event that they are sued as a result of work you do on their behalf
or on there premises.
3z. What is a certificate of insurance?-Top
of page
A certificate of insurance is a widely accepted form that provides evidence
of insurance coverage to other people.
3zz. What does "This insurance is primary and noncontributory"
mean?-Top
of page
Sometimes, the facility rental agreement will require that your policy
be primary and noncontributory with any other insurance coverage that
the facility has. The intent here is clear; the facility is attempting
to make your insurance pay entirely for any claim, whether it is the
fault of the facility or not. This significantly increases your risk
of a claim and many insurance companies will not agree to such wording.
Those that do often charge extra premium for the increased risk.
3zb. What is a waiver of subrogation? -Top
of page
Losses typically happen through someone's negligence. In general, the
negligent party should be liable for such negligence.Your insurance
company could choose to sue a third party to recover the amount of a
claim they paid if the loss was caused by that third party. This is
called subrogation.
Some contractual agreements, including some facility rental agreements,
require you to waive your right of subrogation (and therefore your insurance
company's rights) against them in the event of a claim. Many, but not
all, general liability policies allow you to waive your rights of subrogation
as long as it is done in writing and prior to a loss. Those that do
often charge extra premium for a waiver of subrogation.
4. Professional Lines
4a. General Liability Vs Professional Liability-Top
of page
| |
Provides coverage for liability arising out
of: |
Provide coverage for liability arising out
of: |
| Coverages |
Accidents occurring on or away from the premises
Bodily injury or property damage
Personal or advertising injury* Goods or products
made or sold by the insured |
Wrongful conduct in the rendering of professional
services and/or the failure to render professional services
Claims based on tort and contract principles. |
| |
Multiple limits apply |
Usually subject to split limits |
| Limits |
General aggregatePersonal and advertising injury
limitEach occurrence limitProduct and completed operations limitFire
damage limitMedical expense limit |
Example: $1,000,000/$1,000,000(Occurrence/aggregate) |
| Forms |
Polices are usually written on
an occurrence form |
Policies are usually written on a claims-made
and reported basis |
4b. What's the difference between claims-made coverage and
prior acts coverage?-Top
of page
While claims-made coverage applies to a claim which is made during the
policy period, priors acts coverage offers protection for wrongful acts
that happened before the inception date of an insurance policy...but
have yet to become known. For example, a buyer of E&O insurance
may want to extend coverage for a period of time prior to when the coverage
becomes effective...just in case.
4c. What is errors & omissions insurance or Professional
Liability Insurance?-Top
of page
Professional liability coverage protects you against loss from a claim
of alleged negligent acts, errors or omissions in the performance of
your professional services."E&O" is also referred to as
professional liability or malpractice insurance. This type of liability
insurance would cover you and your employees in the event someone claims
you incorrectly performed or failed to perform your professional duties.
4d. Why Should I Purchase Professional Liability Coverage?-Top
of page
Professional liability coverage provides protection against claims resulting
from your professional services. Most general liability policies will
exclude this coverage.
4e. How does a "claims-made" policy work?-Top
of page
A "claims made" policy protects the policyholder against claims
or incidents that are reported while the policy is in force, or during
an "extended reporting period". The negligent act, error or
omission must have also occurred during the specific time frame set
by the policy.
4g. What is an Extended Reporting Period?-Top
of page
An extended reporting period extends the amount of time in which you
can report a claim. The claim must still occur during the policy period…only
the time to report is extended. ERP's vary by type of coverage. Some
are automatic and some optional ones must be purchased.
4h. Does the insurance company need my consent to settle a claim against
me?-Top
of page
Many policies have a "consent to settle" clause that outlines
the options for settlement. If a policy does not have this clause, then
the insurance company may find that settlement is the best way to handle
a claim.
4i. What is a Retroactive Date?-Top
of page
The retroactive date sets how long before the inception of the policy
that you are covered for negligent acts, error or omissions that you
report during that policy. A retroactive date can match the policy inception
date so that no prior acts are covered.
4j. What is an Occurrence Policy?-Top
of page
A covered claim must occur during the policy period but it does not
matter when the claim is reported or made.
4k. What is the difference between a policy written on an occurrence
basis versus a
claims made basis?-Top
of page
On an occurrence policy, the claim has to occur during the policy period,
regardless of when a claim is actually made or reported. On a Claims
Made policy, the claim must be made or reported during the policy period
regardless of when the claim actually happened.
4l. What is an exclusion?-Top
of page
An exclusion is a clause in the insurance policy that describes what
is not covered. It is very important to always review the exclusions
of a policy due to the coverage limitations.
4m. What does "Limits of Liability" or "Limits of coverage"
mean?-Top
of page
This is the amount of money that the insurance company will pay for
claims. Insurance policies have different types of limits; some limits
are for each event, some are for each claim, and some are the total
aggregate of all claims during the policy period.
4n. Are my independent contractors covered?-Top
of page
Independent contractors can be added by endorsement, subject to the
insurance company underwriter approval.
4o. How much liability insurance do I need?-Top
of page
Due to the growing frequency of professional negligence suits and the
sympathies of courts, professional people are now held more accountable
for their mistakes than ever before. It is difficult, if not impossible
to say how much insurance you might need in the event of an actual claim.
4p. What is Additional Insured?-Top
of page
This endorsement extends coverage to your client under your policy in
the event that they are sued as a result of work you do on their behalf.
4q. What is a certificate of insurance? -Top
of page
A certificate of insurance is a widely accepted form that provides evidence
of insurance coverage to other people.
5. Workers Compensation.
5a. What does workers' compensation insurance do?-Top
of page
Workers' compensation pays for the rehabilitation, recovery and medical
bills of employees work-related injuries, as well as lost time when
they are unable to work because of a work-related injury. Workers' compensation
is not a substitute for health or medical insurance, since employees
are only covered for on-the-job injuries.
5b. When do I need to purchase Workers' Compensation Insurance? -Top
of page
Most states require an employer to purchase workers' compensation insurance
as soon as they have employees. These states also consider a corporate
entity to have employees from the moment the corporation is formed.
Workers' compensation insurance will provide medical expense and disability
income for injured employees as required by the laws of each state.
In addition, the insurer will defend any claim proceeding or suit against
the insured for benefits payable under the policy.
Premium shall be computed on the basis of the total remuneration (payroll)
paid or payable by the insured for services covered by the policy.
5c. What should be included in the remuneration?
-Top of page
In addition to ordinary wages or salaries, remuneration includes several
types of compensation. These include:
• Bonuses
• Extra pay for overtime work except as provided in Rule V-E
• Pay for holidays, vacations or periods of sickness
• Payment by an employer of amounts otherwise required by law
to be paid by employees to statutory insurance or pension plans.
• Payment to employees on any basis other than time worked, such
as piecework, profit sharing or incentive plans
• Payment or allowance for hand tools or power tools used by hand
and provided by employees and used in their work operations for the
insured
• The rental value of an apartment or house provided for an employee
based on comparable accommodations
• The value of lodging received by employees as part of their
pay
• The value of meals received by employees as part of their pay
to the extent shown in the insured's records
• The value of store certificates, merchandise, credits or any
other substitute for money received by employees as part of their pay.
Items not included are:
°Tips and other gratuities received by employees
°Payments by an employer to group insurance or group pension plans
for employees other than payment covered by Rule V-B.2e
°The value of special rewards for individual invention or discovery
°Dismissal or severance payments except for the time worked or accrued
vacations
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