
Broad Form Insurance
Broad form insurance coverage extends beyond the basics to include rare events that may be of serious risk to the insured. For example, for business insurance, there is usually: A basic form policy that typically covers fire, explosions, storms, smoke, riots, vandalism, and sprinkler leaks. A broad form policy that adds more coverage, such as damage from broken windows and other structural glass, falling objects, and water damage. Some auto insurers have to offer broad form insurance options to businesses, which provide coverage for employees, executives, or any other person who is supplied a company vehicle, but who does not own a personal vehicle and, thus, does not have coverage under a personal auto policy In most states, insurers refer to a broad form policy in reference to a comprehensive general liability insurance policy that provides a wide range of coverage that can be tailored to suit specific needs. One example of broad form insurance coverage is automotive glass insurance.

What Is Broad Form Insurance?
Broad form insurance coverage extends beyond the basics to include rare events that may be of serious risk to the insured. This type of insurance usually requires that a higher premium, and often a deductible, be paid. Broad form insurance can be applied to nearly all forms of insurance, including investments, assets, etc.



Understanding Broad Form Insurance
Broad form insurance extends beyond basic coverage. One example of broad form insurance coverage is automotive glass insurance. A customer may need glass insurance because they're frequently on roadways that cause damage to windshields. Glass insurance is not offered under basic automotive insurance plans and therefore must be specifically requested, and a premium must be paid.
The definition of the term "broad form insurance" can vary, depending on the type of insurance. With most insurance policies, a policy is usually basic or broad form. For example, for business insurance, there is usually:
In most states, insurers refer to a broad form policy in reference to a comprehensive general liability insurance policy that provides a wide range of coverage that can be tailored to suit specific needs.
Some auto insurers have to offer broad form insurance options to businesses, which provide coverage for employees, executives, or any other person who is supplied a company vehicle, but who does not own a personal vehicle and, thus, does not have coverage under a personal auto policy. In such a situation, an endorsement may be added that gives protection while the named individual or spouse is driving a car borrowed from a third party.
Broad Form Insurance Example
In Michigan, for example, insurers can offer three types of auto collision coverage: limited, standard, and broad form. The protection provided by the three types of coverage differs based on fault in an accident:
- Standard – Repair or replacement of an insured car is covered, regardless of fault. You'll be responsible for a deductible if you ever file a claim.
- Broad – You'll only have to pay your deductible if you're found to be more than 50 percent at fault in a covered accident. If you're less than 50 percent at fault, you won't have to pay your deductible.
- Limited – Repair or replacement of an insured car is covered only if the driver is less than 50% at fault. In this case, you'll have to pay your deductible. However, if the insured car's driver is more than 50% at fault, damages from the incident are not covered.
Related terms:
Auto Insurance
Auto insurance is purchased by vehicle owners to mitigate costs associated with getting into an auto accident. Discover more about it here. read more
Liability Car Insurance
Liability car insurance provides financial protection for drivers who harm someone else or their property while operating a vehicle. read more
What Is Comprehensive Insurance?
Comprehensive insurance is car insurance that covers damage to your car from causes other than a collision. Learn about comprehensive insurance costs. read more
Deductible
For tax purposes, a deductible is an expense that can be subtracted from adjusted gross income in order to reduce the total taxes owed. read more
Insurance
Insurance is a contract (policy) in which an insurer indemnifies another against losses from specific contingencies and/or perils. read more
Personal Lines Insurance
Personal lines insurance includes property and casualty insurance products that protect individuals from losses they couldn’t cover on their own. read more
Premium
Premium is the total cost of an option or the difference between the higher price paid for a fixed-income security and the security's face amount at issue. read more
Third-Party Insurance
Third-party insurance, the most common example being auto insurance, is a policy designed to protect against the actions or claims of a third party. read more
Uninsured Motorist Coverage (UM)
Uninsured motorist (UM) coverage may pay a policyholder's damages when an accident involves a driver who does not have insurance or is a hit-and-run. read more