Comparing property insurance coverage to your favorite fast-food burger may seem a bit bizarre,
but it does help make an important point when evaluating your theatre insurance.

Just as you can purchase a simple, deluxe or special burger, you can also purchase  insurance that provides simple BASIC, deluxe BROAD or special ALL RISK Causes of Loss protection for your theatre property.

Causes of Loss are all the specific perils that your property insurance insures against.

BASIC  With the Basic Cause of Loss form your property is insured against 11 named perils: fire [including water damage caused by firefighters and sprinkler damage], lightning, explosion, windstorm/hail [in most states], smoke, aircraft/vehicle, riot/civil commotion, vandalism, sprinkler leakage, sinkhole collapse and volcanic action.

BROAD  The Broad Cause of Loss form includes the 11 perils named above and adds  four more; breakage of glass, falling objects, weight of snow/ice and most water damage due to plumbing.  In addition, the Broad form adds coverage for Collapse.  If your building is damaged as a result of any of the 15 named perils and then collapses, coverage is included.

SPECIAL  [Also referred to as ALL RISK or OPEN PERILS] The Special Causes of Loss  provides the most extensive coverage available.  Instead of naming the covered perils as is done under Basic and Broad coverage, the Special Risks Cause of Loss form simply states that your insurance covers everything except that which your policy specifically excludes. In addition, protection from theft of property is an important coverage available only with Special Risks coverage.

If you are comparison shopping or merely evaluating your current insurance, be sure to determine the extent of coverage provided.  One policy may be less expensive, but if it only provides the Basic Cause of Loss form, cheaper may not be better.

For those who participate in the AACT membership insurance program, your policy carries the Special Risk Causes of Loss coverage; the best insurance protection available.

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