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Frenkel & Co., Inc. Company
Sometimes also referred to as a "BOP" or Business Owners Package, this policy is called a "Package" because it combines a Property coverage section with a Liability coverage section.
| Coverage | Description |
|---|---|
| "All Risk" | Refers to the perils (ie.: fire, lightning) that are covered under the policy. An "All Risk" policy, sometimes also called "Special Perils" covers all risks of physical loss except for those causes that are specifically excluded. There is no such thing as a true "all risk" policy because every policy has at least some excluded perils |
| Earthquake | Standard "all risk" policies exclude earthquake. Earthquake coverage must be specifically endorsed on the policy. If you purchase earthquake coverage make sure you also get earthquake sprinkler leakage coverage if your office has fire sprinklers |
| Flood | Standard "all risk" policies exclude flood. Flood coverage must be specifically endorsed on the policy. |
| Seepage / Back-up of sewers and drains | Standard "all risk" policies exclude seepage and back-up of sewers and drains. This coverage must be specifically endorsed on the policy. |
| Real Property | Covers the value of the building owned or rented under a net lease as a result of a covered loss. We recommend replacement cost coverage which will pay the full cost to repair or replace (new for old) up to the policy limit |
| Personal Property | Covers the value of all contents and tenant improvements as a result of a covered loss. We recommend replacement cost coverage which will pay the full cost to repair or replace (new for old) up to the policy limit |
| Business Income | Covers loss of profit and expenses that necessarily continue in the
event of a loss as a result of a covered loss to the insured location.
Most hedge funds do not have a business income exposure because they can
relocate to temporary premises and resume operations without sustaining
an interruption in business. The cost of relocating to temporary
premises can be substantial - that's why extra expense coverage is so
important for a hedge fund. There is also some question as to whether a hedge fund can prove a business income loss. The insurance company may argue that trades that could have been made during a period of interruption may have gone against the fund and resulted in losses. |
| Extra Expense | Covers extra expenses over and above normal operating expenses as a result of a covered loss to the insured location. These expenses may include costs for temporary space, installing equipment at temporary premises, and necessary overtime costs. |
| Leasehold Interest | Covers the value of a below-market lease in the event of lease cancellation due to a covered loss to the insured location. |
| EDP Equipment, Data & Media | Covers all electronic equipment, the value of discs and tapes, and the cost to re-create data that is lost due to a covered loss to the insured location. Also eliminates the standard policy exclusions for mechanical breakdown and damage due to power surges caused by artificial currents (as opposed to damage caused by lightning), |
| Rent | Covers rent expense in the event your lease says rent does not abate in the event of a fire or other casualty |
| Accounts Receivable | Generally not an exposure for hedge funds, but covers the amount of accounts receivable you cannot collect because your receivable records have been damaged due to a covered loss |
| Valuable Papers & Records | Covers the cost to re-create or restore records that have been stolen or damaged due to a covered loss |
| Fine Arts | Covers paintings, prints, sculpture, antiques, and other fine art stolen or damaged due to a covered loss |
| Property off premises / in transit | Covers personal property while outside your office or in transit, such as laptop computers |
| Personal Effects of Employees | Covers personal property of employees while located in your office |
| Newly acquired property | Automatically covers newly acquired property for a period of time until you have a chance to report it to the insurance company |
| Arson & Theft Reward | Pays for a reward offered to individuals who provide information following an arson or theft loss |
| Civil Authority | Provides coverage if access to your premises is blocked by the authorities due to a covered loss |
| Ordinance or Law | Covers the value of the undamaged portion of a building that must be
demolished to comply with building codes - and the cost of the
demolition Covers the increased cost of construction to comply with the latest building codes |
| Service Interruption | Covers loss due to interruption of utility service (electric, water, steam, gas, or telecommunications) due to a covered loss to the utility |
| Coverage | Description |
|---|---|
| Commercial General Liability | Also referred to as a "CGL" policy, covers defense costs and any judgments or settlements arising out of an occurrence resulting in bodily injury, property damage, or personal and advertising injury for which you are legally liable to a third party. The policy has a number of components and extensions explained below: |
| Defense Costs | The insurer has a very broad duty to defend claims brought under the policy. Defense costs are outside (in addition to) the limits of liability |
| Premises and Operations Liability | The CGL policy provides coverage for bodily injury and property damage sustained by others at your office or away from office within the U.S. and Canada as a result of your funds' operations. This part of the policy covers typical "slip and fall" claims |
| Medical Expenses | Pays up to the applicable medical expense limit the medical bills if someone is injured and needs medical treatment due to an accident on your premises. This coverage is provided without regard to fault. |
| Personal and Advertising Injury | Covers you for certain offenses you or your employees commit in the course of your business, such as libel, slander, disparagement, or copyright infringement in your advertisements |
| Fire Legal Liability | Covers damage to that portion of a building you lease caused by a fire for which you are responsible |
| Employee Benefits Liability | Covers claims made by employees for errors (non-ERISA claims) you make in administration of your benefits program |
| Hired & Non-Owned Auto Liability | Covers claims arising out of the use of a hired (rental) vehicle or a non-owned vehicle (such as an employee's car) in your business |
| Additional Insured | Provides coverage under your policy for another party, such as your landlord, as required under a contract or agreement |
| Limits | The standard limits for a CGL policy are $1,000,000 each occurrence and $2,000,000 general aggregate |
| Office Package (Property/General Liability) | Type | Size |
|---|---|---|
| Chubb Customarq sell sheet |  |
303K |
| Chubb Customarq 101 Reasons sell sheet | |
172K |
| CNA Office Package sell sheet | |
234K |
| Hartford Business Owners Package brochure | |
67K |
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