What Accounts Receivable In Insurance ?
Life Insurance - What Accounts Receivable In Insurance ?
Accounts Receivable – As part of your insurance risk management plan, to the extent feasible, you should keep backup copies of your accounts receivable in a separate location.
For some businesses, however, it may be in the nature of the business insurance that accounts receivable records are vulnerable to property loss. If needed, you may extend coverage under your BOP. The accounts receivable extension obligates the insurer to pay amounts due from your customers that you are unable to collect.
Accounts Receivable – As part of your insurance risk management plan, to the extent feasible, you should keep backup copies of your accounts receivable in a separate location.
For some businesses, however, it may be in the nature of the business insurance that accounts receivable records are vulnerable to property loss. If needed, you may extend coverage under your BOP. The accounts receivable extension obligates the insurer to pay amounts due from your customers that you are unable to collect.
The limit is up to $10,000 per occurrence for records located on the premises described in the policy "Declarations" or $5,000 for records located elsewhere.
Adding Additional Insurance – In many situations, a business is required by contract or law to add coverage to its BOP for other parties who usually have property at risk that is in the care of the insured. Such parties typically include managers or lessors of a rented or leased premises and mortgage holders. You can add coverage to your BOP with an Endorsement Adding Additional Insureds.
Computer Fraud and Funds Transfer Fraud – Your business insurance may run the risk that someone will cause an unauthorized transfer of funds from your bank account, whether through electronic or written instructions.
The Endorsement for Computer Fraud and Funds Transfer Fraud covers this risk. The insurer pays for the loss of money and securities resulting directly from a fraudulent instruction instructing a financial institution to transfer, pay, or deliver money or securities from your “transfer account.” The endorsement defines a “transfer account” as “an account maintained by you at a financial institution from which you can initiate the transfer, payment or delivery of money and securities.
Adding Additional Insurance – In many situations, a business is required by contract or law to add coverage to its BOP for other parties who usually have property at risk that is in the care of the insured. Such parties typically include managers or lessors of a rented or leased premises and mortgage holders. You can add coverage to your BOP with an Endorsement Adding Additional Insureds.
Computer Fraud and Funds Transfer Fraud – Your business insurance may run the risk that someone will cause an unauthorized transfer of funds from your bank account, whether through electronic or written instructions.
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The Endorsement for Computer Fraud and Funds Transfer Fraud covers this risk. The insurer pays for the loss of money and securities resulting directly from a fraudulent instruction instructing a financial institution to transfer, pay, or deliver money or securities from your “transfer account.” The endorsement defines a “transfer account” as “an account maintained by you at a financial institution from which you can initiate the transfer, payment or delivery of money and securities.
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