Legal defense costs, settlement or judgment payments, and medical expenditures for harmed parties are all covered under a CGL policy. It also covers harm done to other people’s possessions or property by the covered firm. Small and medium-sized firms often obtain CGL policies, although larger corporations may also utilize them to enhance their current insurance coverage.
The BMA Sum Insured designates the highest level of protection that a policy may offer. It is used to determine the premium for a medical insurance policy and stands for Basic Medical Amount. This sum fluctuates according to the covered person’s age, state of health, and medical history.
When a person or company has two or more insurance policies covering the same risk or occurrence, the term “double insurance” is used. The insured may file a claim under any of the policies under such circumstances, but the total amount of compensation cannot be greater than the actual loss incurred. Double insurance is frequently used to extend protection or distribute risk among several insurance providers.
The total sum that an insurance company is required to pay in the case of a claim is referred to as the maximum limit of responsibility of the insurer under the policy. According to the kind of insurance, the level of coverage, and the amount of the premium paid, the insurer normally determines this limit. The highest limit of liability does not always imply that the insurer would cover the whole amount of the claim; deductibles and other policy provisions can still be in effect.
Boilers are considered machines, not pieces of equipment. It is a machine that produces steam or hot water for use in industrial processes or for heating. Power plants, manufacturing facilities, and other industrial environments frequently use boilers. To ensure they work safely and effectively, they are subject to safety rules and routine maintenance.
To protect themselves against unforeseeable accidents or occurrences, companies of all sizes should get CGL insurance. Businesses may make educated judgments when obtaining insurance policies by understanding essential concepts as BMA Sum Insured, Double Insurance, Maximum Limit of Liability, and the classification of equipment like boilers.
No, boiler and machinery coverage and equipment breakdown coverage are not the same. While equipment breakdown coverage is more thorough and covers a larger range of equipment, including computers, refrigeration systems, and electrical systems, boiler and machinery coverage concentrates primarily on the breakdown of boilers and other machinery. Additionally, losses such as business interruption and deterioration of perishable items that are not directly due to equipment breakdown may also be covered under equipment breakdown coverage.