What are the 3 main types of insurance?

What are the 3 main types of insurance?

Insurance in India can be broadly divided into three categories: Life insurance. As the name suggests, life insurance is insurance on your life. … Health insurance. Health insurance is bought to cover medical costs for expensive treatments. … Car insurance. … Education Insurance. … Home insurance. Feb 17, 2022

What is the difference between mechanical breakdown and wear and tear?

A: Wear and tear usually occurs over time. The performance of the equipment slowly declines and its capacity diminishes; however, the equipment is still functioning. A mechanical breakdown usually occurs suddenly. Typically, the equipment breaks or mechanically locks up.

What is an example of mechanical breakdown?

Mechanical breakdown: This includes rupture or bursting caused by centrifugal force. Most policies cover ensuing loss caused by elevator collision. Explosion of steam boilers, steam pipes, steam engines or steam turbines: Also excluded is damage to steam boilers, steam pipes, etc. Sep 17, 2020

Which of the following claims may be covered under an equipment breakdown protection coverage form?

Answer A is correct. The Equipment Breakdown Protection coverage form provides many additional coverages including Business Income, Spoilage Damage, Utility Interruption, etc. provided either a specified limit or the word INCLUDED is shown for that coverage in the policy’s declarations page.

What is an example of equipment breakdown?

There are five categories of equipment that equipment breakdown insurance typically covers: Mechanical, which includes motors, engines, generators, elevators, water pumps and specialized production and manufacturing equipment. Electrical, which includes transformers, electrical panels and cables.

What is equipment breakdown coverage on a business policy?

Equipment breakdown coverage is an optional part of a business insurance policy that may help pay for the costs of repairing or replacing damaged or broken-down equipment after a covered incident.

What is not covered under equipment breakdown?

What does equipment breakdown insurance not cover? Equipment breakdown insurance doesn’t cover damage to your items caused by old age or basic wear and tear. It also doesn’t cover rust, mold, pest damage or other problems that result from not taking care of your equipment.

Which of the following perils are not covered by the equipment breakdown coverage policy?

The perils of fire, explosion, earth movement, water (i.e., flood), lightning, windstorm/hail, collision with a vehicle, riot/civil commotion, sprinkler leakage, and volcanic action are specifically excluded in the HSB policy as coverage should be provided in the property policy.

What is not covered by business interruption insurance?

Business interruption insurance doesn’t cover: Broken items resulting from a covered event or loss. Flood or earthquake damage, which you’ll need a separate policy for. Undocumented income that’s not listed on your business’ financial records.

What does business interruption insurance typically cover?

Business interruption insurance is insurance coverage that replaces income lost in the event that business is halted due to direct physical loss or damage, such as might be caused by a fire or a natural disaster.

What are probably the most common cause of a business interruption?

While there are many different causes of business interruption, the two most common are fire and flood.

Does business income include payroll?

Under many (but not all) policies, Business Income coverage includes continuing normal operating expenses such as payroll expenses.

What is classed as business interruption?

Business interruption insurance covers you for loss of income during periods when you cannot carry out business as usual due to an unexpected event. Business interruption insurance aims to put your business back in the same trading position it was in before the event occurred.

How is business interruption calculated?

The business interruption formula can be summarized as follows. BI = T x Q x V. … BI = business interruption. … T = the number of time units (hours, days) operations are shut down. Q = the quantity of goods normally produced, or sold, per unit of time used in T. More items…

How do you explain business income coverage?

Here’s a brief explanation: Business income coverage is designed to help keep you in business following a loss or disaster. Your coverage helps replace income lost due to a fire, severe weather or other covered event. It can help you meet operating expenses while the company is closed for repairs or rebuilding.