COMMERCIAL
PROPERTY INSURANCE
One
important insurance need for businesses is the need for property
insurance: insurance on real property such as office
buildings, factories and warehouses, and insurance on business
personal property such as furniture, fixtures, machinery,
and inventory. The most widely used means for providing the
property insurance that businesses need is the Commercial
Property coverage part of the Commercial Package Policy (CPP).
Commercial
Package Policy (CPP) - Package policy for businesses
developed by ISO (Insurance Services Office - Organization
established for the benefit of its member insurance companies
and other subscriber companies. ISO gathers statistics, provides
loss costs, drafts policy forms and coverage provisions, and
conducts inspections for rate-making purposes). Insureds can
select two or more of the following coverages to include in
the policy: Commercial General Liability, Commercial Property,
Commercial Inland Marine, Commercial Crime, Boiler And Machinery,
Farm, and Commercial Automobile. Most commercial risks are
eligible for the CPP. The Commercial Property coverage part
consists of a number of separate components that can be combined
to provide the appropriate property coverage for a wide variety
of commercial insureds. In addition to the Common Policy Declarations
and Conditions, each Commercial Property coverage part must
include:
*
Commercial Property Declarations Form - provides
additional information about the premises to be insured and
the specific forms that will apply. It also includes the name
and addresses of any mortgage holders. The Commercial Property
coverage forms contain descriptions of the specific coverages
being provided to the business. Each Commercial Property coverage
form defines what property is covered, what property is not
covered, how limits and deductibles apply, and what special
conditions apply. These are coverage forms:
(1)
Building And Personal Property (2) Builders Risk (3) Condominium
Association (4) Condominium Commercial Unit-Owners (5) Business
Income With Extra Expense (6) Business Income Without Extra
Expense (7) Extra Expense (8) Legal Liability (9) Glass.
*
Commercial Property Conditions Form - includes conditions
that apply specifically to the Commercial Property coverage
forms.
The
Control Of Property condition states that an act of neglect
of a person beyond the insured’s direction or control
will not affect the insurance. In addition, if the insured
violates a condition of the policy with regard to a specific
location, the insurance applicable to other locations will
not be affected.
The
Legal Action Against Us, the Other Insurance, the Policy Period,
Coverage Territory, the Transfer Of Rights Of Recovery Against
Others to Us, the Concealment Or Fraud, the No Benefit To
Bailee, the Liberalization, are Commercial Property Conditions
Forms.
*
Causes Of Loss Forms - list the perils that the property
is insured against. There are four separate Causes Of Loss
forms:
(1)
Basic (2) Broad (3) Special (4) Earthquake
Generally,
only one Causes Of Loss form is used. However, the Earthquake
form may only be used in conjunction with one of the other
three forms.
Finally,
there are a variety of endorsements that can be added to the
policy to modify coverage. Some endorsements are mandatory
by law or when particular coverages are written.
*
One or more Commercial Property coverage forms
*
Any mandatory endorsements
The
most commonly purchased form, and the form that is the core
of the Commercial Property coverage part, is the Building
And Personal Property coverage form. It covers buildings,
the insured’s business personal property and the personal
property of others located at the business premises. The insured
may select coverage for one or more of these categories. Coverage
is only provided for coverages that have a limit of insurance
shown in the Declarations.
For
more details, please call a PaulBalep representative toll-free
1-800-964-8614 to receive a free, no-obligation
quote.
Please
note that the precise coverage afforded is subject to the
terms, conditions, and exclusions of the policy as issued.
This explanation is intended only as a guideline. This information
is not intended to be considered investment, tax or legal
advice. It is provided, for your education only. This is not
an insurance contract. All terms and coverages are defined
solely by your policy.
<<Independence
is number one>>. We are nonexclusive producers who represent
an average of eight companies-not just one. PaulBalep
can evaluate and compare the products of several fine companies
to find you the right combination of coverage and value.
|