California Property & Casualty Broker-AgentProperty InsuranceMedium
A client operates a bakery and wants to ensure their Commercial Property policy provides the broadest possible coverage for their building and business personal property. Which Causes of Loss form would provide this desired level of protection, covering all perils except those specifically excluded?
- ACauses of Loss - Special Form
- BCauses of Loss - Basic Form
- CCauses of Loss - Broad Form
- DCauses of Loss - Named Perils Form
Show answer & explanationAnswer & explanation
Correct answer: A. Causes of Loss - Special Form
The Causes of Loss - Special Form provides 'open perils' coverage, meaning it covers all direct physical losses to covered property unless the cause of loss is specifically excluded. This offers the broadest protection.
Why the other options are wrong
- B. Basic Form covers only a limited list of named perils.
- C. Broad Form covers more named perils than Basic, but is still not 'all-risk'.
- D. Named Perils Form is a general term; Basic and Broad are types of named perils forms.
Causes of Loss - Special Form
A commercial property causes of loss form that provides 'open perils' coverage, meaning it covers all direct physical losses unless the cause of loss is specifically excluded by the policy.
- Broadest coverage
- All perils covered unless excluded
- Reverse burden of proof on insurer
Memory trick: Special Form: Super Protection, Everything Covered Unless Excluded