Understanding Monoline Property Insurance

Monoline policies cover only a single type of insurance, offering a single set of coverages that help simply things for the consumer. Likewise, some examples could include workers’ compensation or commercial auto. These are monoline policies. Monoline property insurance covers only a single aspect of property insurance.

Alternatively, monoline policies may include two or more coverage lines. These give more flexibility. For example, commercial package policies may cover crime, property, general liability, and auto insurance in a single package.

Common elements of Monoline and Package Insurance

Whether you go for package or monoline property insurance, it will likely contain the following.

Common Policy Declaration

It includes the policy number, date of effectiveness, and expiration. Additionally, you will also see the name of the insurance firm broker. The premium for each coverage also is available. Therefore, it opens up avenues of access the

Common Policy Conditions

These consist of six conditions, detailed in a separate form. They include the following:

  1. Cancellation terms. 
  2. Changes. Changes come upon a written endorsement of the insurer.
  3. Examination of books and records. States the insurer has the right to audit the policyholder’s company records.
  4. Inspections and surveys. States that the insurer can inspect the policyholder’s property and operations while the policy is active.
  5. Premiums
  6. Transfer rights and duties under the policy. 

Coverage Parts

It consists only of a single coverage part in monoline property insurance. Also, package policies may include several coverage parts.

Building and Personal Property (BPP) Coverage Form. 

The BPP coverage form has several inclusions in the contract. It includes covered property, property not covered, additional coverages, as well as coverage extensions. Additionally, the limits of coverage, deductible and loss conditions are included.

General Liability Insurance

Business owners can get this because it covers many risks due to negligence. Likewise, general liability covers injuries caused by trips and falls. It also covers losses resulting from defective products. Additionally, it helps cover losses caused by employee errors.

Commercial General Liability insurance provides three specific coverages. 

Bodily Injury and Property Damage Liability

It covers claims of bodily injury. Then, it also covers property damage and pays for damages arising from such claims. 

Personal and advertising injury liability. 

It covers risks that result in personal or advertising injury. Also, it provides policyholders financial protection arising from such claims and pays their legal fees. 

Medical Payments. 

It pays the medical fees of claimants that file suit for injury against the policyholder. Then, it may also cover settlement costs that could result in the closure of a claim without necessarily having to prove that the policyholder was negligent.

Getting the Most from Monoline Property Insurance

· Read through the details of your policy thoroughly. When in doubt, ask your insurance agent for clarification.

  1. Review the statement of values for the property at least once a year. It will ensure that all the information is accurate.
  2. Consult with your insurer to determine how much insurance you will need to cover loss of income and other expense-related risks.
  3. Ensure that you get coverage for owned and non-owned vehicles. Any volunteers you enlist should have the same insurance coverage as your employees.
  4. Ask your insurance agent how many securities come with it. You should also ask about coverage for extraordinary circumstances to ensure that you are covered appropriately.

Augmenting your Monoline Property Insurance

Remember that monoline property insurance includes only single coverage. However, if you do go for this option, you might want to augment it with one or more of the following, depending on your needs:

  1. Umbrella liability
  2. Professional liability
  3. Directors and Officers (D&O)
  4. Cyber insurance

If you are unsure what each policy entails and whether or not it will be beneficial to you, consider discussing the specifics with your broker or insurance agent. 

About Snyder Specialty

Snyder Specialty, LLC is a New York-based underwriting facility that provides a range of property and liability solutions for personal and commercial lines. Specializing in coastal properties and hard-to-place risks, Snyder Specialty expands your current capabilities with proven solutions for complex risks. Find out more about the company’s range of services by calling (718) 362-8039.