Legal Definitions - flyer policy

A "flyer policy," sometimes also referred to as a "flier policy," is a type of insurance policy that provides limited, specific, or supplementary coverage. Unlike a comprehensive, standalone insurance plan, a flyer policy is typically designed to address a particular risk, cover a specific event, or fill a gap in existing insurance coverage. It often offers protection for a defined period or for a very particular set of circumstances.

• Imagine a local community organization planning a one-day charity music festival in a public park. Their standard general liability insurance might not fully cover the unique risks associated with a large public event, such as potential injuries to attendees, damage to rented equipment, or cancellation due to severe weather. To address these specific concerns, the organization purchases a flyer policy tailored for special events. This policy provides coverage exclusively for the duration and scope of the music festival, offering protection against the particular liabilities and potential losses unique to that single event.

  This illustrates a flyer policy because it's a temporary, highly specific insurance product designed to cover the distinct risks of a single event, rather than providing broad, ongoing coverage.

• Consider a homeowner who decides to rent out their primary residence for a weekend through a short-term rental platform. While their standard homeowner's insurance policy covers their property for personal use, it often has exclusions for commercial activities or damage caused by paying guests. To ensure they are adequately protected during the rental period, the homeowner might purchase a flyer policy specifically designed for short-term rentals. This policy would cover risks like property damage caused by guests, liability for guest injuries on the property, or even lost rental income due to damage, but only for the specific rental duration.

  This demonstrates a flyer policy as it provides targeted coverage for a specific, temporary commercial use of property, supplementing or filling gaps in a standard policy that wouldn't otherwise cover these particular risks.

• A small architectural firm holds a standard professional liability insurance policy with a coverage limit of $1 million. However, they are bidding on a very large, complex project where the potential for errors and omissions could lead to damages far exceeding that limit. To enhance their protection for this high-stakes project, the firm decides to purchase an additional flyer policy that provides excess professional liability coverage. This policy would only activate and pay out once the $1 million limit of their primary policy has been exhausted, effectively increasing their total coverage for potential claims related to that specific project or their practice generally.

  This exemplifies a flyer policy because it acts as supplementary coverage, kicking in only after a primary policy's limits are reached, thereby extending protection for specific, higher-risk scenarios without replacing the foundational insurance.