OVERVIEW:
PACKAGE POLICY - Format is a business owner’s policy, combining a variety
of coverages into a singular form.
KEYS FOR COVERAGE: |
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1. ACCURATE RECORDS must be kept for three years.
2. ADEQUATE PROTECTION/SAFEGUARDS - Central Station alarm
system must be in operation.
3. WARRANTIES - Central station alarm system in place and
inventory storage; the application becomes part of the policy. |
UNDERWRITING REQUIREMENTS: |
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1. Must have a minimum of THREE YEARS EXPERIENCE in
pawnbroking or similar business. (Manager of Pawnshop, Jeweler,
etc.)
2. Central station ALARM SYSTEM in operation on
premises. (An alarm certificate may be required upon binding
coverage.)
3. Must have adequate SAFE PROTECTION for firearms &
jewelry. A minimum of 70% of the firearms and jewelry must be
stored in safe(s) at close of business. (Some exceptions are
considered for long guns - provided they are properly secured.)
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PROPERTY COVERAGES: |
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1. Building
2. Business Personal Property (furniture and fixtures)
- contents other than stock inventory.
3. Tenants Improvements and Betterment’s - permanent
changes. Tenants improvements and betterment’s are fixtures,
alterations, installations or additions.
- Made a part of the building and structure you occupy, but do
not own; and
- You acquired or made at your own expense but cannot legally
remove.
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4. Inventory - Pledged (pawned) and Unpledged
(owned) items.
- Coverage is written on a "Special Form" basis including
fire, lightning damage, theft and wind/hail damage, subject to
the policy and State exclusions.
- Specific exclusions include; earthquake, pollution, flood,
employee dishonesty and mysterious disappearance. (Please
refer to the original policy.)
- Deductibles vary. (The minimum policy deductible is $500
-- Firearms and Jewelry section has a minimum deductible of
$1,000.)
- Coverage is available for buildings, business personal
property (furniture & fixtures), and tenants improvements
& betterments on a replacement cost basis. (This means
without penalty for depreciation.)
- Actual Cash Value may be selected and/or required on the
building and business personal property coverage section
depending on the age of the building. (All updates must be
within the last 15 years on buildings over 25 years old in order
to provide replacement cost coverage.)
- Stock Inventory - "Pledged" (pawned) and "Unpledged"
(owned) items including:
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a. Your stock in trade consisting of jewelry, precious and
semi-precious stones, precious metals and alloys, electronics,
firearms, musical instruments, and other "unpledged" stock used in
your business.
b. Such property sold but not yet delivered;
c. Similar "pledged" property of others not in the
pawnbroking trade in your care, custody or control; and
d. Similar "pledged" property of others in the pawnbroking
trade in your care, custody or control. But, we only cover to the
extent of the money you have advanced or your legal liability for
that property.
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5. Business Income - written on a monthly limitations form.
Monthly limitations available: 1/3, 1/4 or 1/6. Extended period of
indemnity up to 360 days also available.
6. Property coverage extensions - included:
- Outdoor property - sign, trees, and shrubs - $1,000
- Valuable papers and records - $1,000
- Debris removal up to $10,000 and Preservation of property
- Personal Property off premises (excludes stock)
- $5,000
- Personal Property newly acquired premises (excludes
stock) - $10,000
- Forgery & Alteration, and Money Orders and Counterfeit paper
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LIABILITY COVERAGES: |
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1. LIMITS AVAILABLE - $300,000/$600,000,
$500,000/$1,000,000, and $1,000,000/$2,000,000. (Standard
Exclusions apply)
2. WHO IS AN INSURED?
- Individual - you/spouse
- Partner - partner & spouse - only with respect to the
business.
- Corporation - you, executive officers, directors - only in
the business.
- Employees under scope of employment.
3. Protects against claims made against insured for
BODILY INJURY OR PROPERTY DAMAGE due to:
- Premises/operations - being on your property
- Products - items purchased from insured (excludes
firearms)
4. Protects against claims made against you for
PERSONAL INJURY OR ADVERTISING INJURY - slander, libel
violation of right of privacy, infringement of copyright.
(There is no coverage for false advertising.)
5. PRODUCT LIABILITY FOR FIREARMS - may be purchased up to
a $300,000 per occurrence limit. (Defense costs are outside
limit provided -- firearms sales must be 30% or less than overall
gross sales.) No gun-smithing.
6. HIRED AND NON OWNED AUTO - Protects against claims
arising out of the use of vehicles leased, hired, rented or
borrowed by you, or your employees, while in the course of
business. Also provides liability protection for autos used in
business that are not owned, leased, hired, rented or borrowed.
7. MEDICAL EXPENSE - regardless of fault, accident on your
premises, $5,000 limit, not for injuries on your employees.
(This is a goodwill coverage.)
8. FIRE LEGAL LIABILITY - $100,000 limit, property damage
to premises not owned by you as a result of fire or explosions.
(Higher limits may be purchased for an additional premium, if
needed.)
9. EXCESS LIABILITY up to a $5,000,000 occurrence limit
available. (Certain states may not be eligible.)
10. WORKER’S COMPENSATION, pollution and auto liability
NOT COVERED.
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OPTIONAL COVERAGES: |
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- Signs
- Interior/Exterior Glass
- Money & Securities
- Mechanical Breakdown
- EDP-Computers
- Accounts Receivable
- Valuable Papers
- Shipments
- Memorandum (Memoing)
- Show Windows
- Property Off Premises (In the custody of Insured)
- Ordinance or Law
- Peak Season Coverage
- Auto Pawn, Title Pawn and Check Cashing. (incidental
basis only)
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POLICY DEFINITIONS: |
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1. "ACTUAL CASH VALUE (ACV)" The present day value
of property measured in cash, determined by deducting depreciation
brought about by physical wear and tear and obsolescence from
"replacement cost".
2. "REPLACEMENT COST (RC)" The amount needed to
cover the actual amount of repairs or replacement without
deduction for depreciation.
3. "BUSINESS PERSONAL PROPERTY (FURNITURE & FIXTURES)"
Contents owned by the pawnbroker and that are used in your
business other than "pledged" and "unpledged" inventory.
4. "INVENTORY VALUE" The value of goods as normally
accepted within the pawnbroking business as evidenced by the
amount declared on the inventory, stock books, stock papers,
lists, pawn tickets or loan agreements maintained by the
pawnbroker.
5. "PLEDGED" Pawned goods or items taken in on loan
being as a collateral.
6. "UNPLEDGED" Items or inventory owned by the
pawnbroker for sale, other than business personal property
(furniture & fixtures).
7. "COINSURANCE" A property insurance provision that
penalizes the insured for not purchasing a limit of insurance at
least equal to a specified percentage (commonly 80 percent) of the
value of the insured property. The coinsurance provision
stipulates that the insured will recover no more than the
following: the amount of insurance purchased (the limit of
insurance) divided by the amount of insurance required (the
value of the property on the date of loss multiplied by the
coinsurance percentage), less the deductible. For example:
Covered property worth $100,000 may require a minimum of 80%, or
$80,000, of coverage for compliance with the policy's coinsurance
requirement. If only $60,000 is carried (25% less than the
required $80,000), then any loss payment would be reduced by
25%.Questions? Call or Email us!
ASK FOR Laura, Dave or Seth
Toll-free (800) 545-5624
Union Life & Casualty Insurance Agency
5225 N. Central Avenue, Suite #110
Phoenix AZ 85012
Phone (602) 277-5555
Fax (602) 265-9763
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