Most policies contain similar definitions to those listed below, however, the Department recommends reviewing your specific policy for accurate definitions.
Losses are broken down under three main coverages:
- Basic – named perils needs to be listed in the policy.
- Broad – named perils needs to be listed in the policy.
Example of a named peril:
Infectious Diseases – this includes loss caused by the complete interruption of your operations by an infectious disease acquired by your employees or staff.
- Special – covers any loss not excluded in the policy, must be direct physical loss.
Example of an exclusion:
Virus or Bacteria – any virus, bacterium or other microorganism that induces or is capable of inducing physical distress, illness or disease.
Common Policy Verbiage: When Special is shown in the Declarations, Covered Causes of Loss means direct physical loss unless the loss is excluded or limited in this policy.