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.

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...

• A basic form policy that typically covers fire, explosions, storms, smoke, riots, vandalism and sprinkler leaks.
• A broad form policy that adds more coverage for damage from, for example, broken windows and other structural glass, falling objects and water damage.
• Special form coverage offers the widest range of protection, typically covering all risks (including theft), unless specifically excluded from the 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.

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, a endorsement may be added that gives protection while the named individual or spouse is driving a car borrowed from a third party.

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:

1. 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.
2. 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.
3. Limited – Repair or replacement of an insured car is covered only if the driver is less than 50 percent at fault. In this case, you'll have to pay your deductible. However, if the insured car's driver is more than 50 percent at fault, damages from the incident are not covered.