Chapter 12: Commercial Inland Marine Coverage

Electronic Data Processing Coverage Form

Insured computer hardware and associated equipment used for a business, as well as data and media, including software, discs, tapes, and cells

Provides coverage from electrical arcing and power surges, temperature and humidity changes, and mechanical breakdown

Protection against computer viruses and harmful code may be offered as additional coverage

Equipment Dealers Floater

Provides insurance for a dealer's stock in trade consisting principally of mobile equipment used for the agricultural and construction industries, such as binders, reapers, harvesters, tractors, bulldozers, and road scrapers

Inland Marine Insurance

Primarily covers property on land while it is away from the owner's premises

Usually written on an open perils basis and contains few exclusions

Installation Floater

Primary property insured is moveable property, such as electrical, plumbing, or heating equipment to be installed in a building

Jewelers Block Coverage

Covers jewelry held as stock by jewelry retailers, wholesalers, and manufacturers, including what has been sold but not delivered

Property includes jewels, watches, gold, silver, platinum, pearls, and precious and semiprecious stones

Marine Insurance

To be covered, all property must contain an element of transportation

The property must be in transit, be moveable, or bear a relationship to transportation or communication

Signs Coverage Form

Adds insurance for signs, street clocks, and similar property in the insured's care

Can also be used to cover neon signs, automatic or mechanical signs, billboards, and ordinary fixed or plastic-faced signs

Does not apply if loss or damage occurs during transportation, installation, repairing, or dismantling

Valuable Papers and Records

Provides insurance for the destruction of valuable papers and records by a covered cause of loss

Includes abstracts, books, deeds, drawings, films, maps, and mortgages

Accounts Receivable Coverage Form

Coverage provides insurance when the insured's business records are destroyed in a loss caused by a covered peril, and the business is unable to collect money it's owed

Policy pays for uncollected sums, expenses involved with reconstructing records, extra collection fees, interest on loans, and other reasonable fees

Exports

May be insured at any location

Acquires its character when being prepared for export

Must retain that character, unless diverted for domestic trade

Imports

May be insured at any location and must remain segregated from other property so it can be easily identified

Instrumentalities of Transportation or Communication

Covers items that are often at a fixed location because they plan an important role in the transportation and communication industries

Nationwide Marine Definition

Six broad classes of property that may be insured under a marine contract

1. Imports

2. Exports

3. Domestic Shipments

4. Instrumentalities of Transportation or Communication (bridges, tunnels, towers)

5. Personal Property Floater Risks

6. Commercial Property Floater Risks

Controlled Lines of Coverage

Policy forms, endorsements, and rates that are filed by insurers with the departments of insurance in each of the states where they write insurance.

Uncontrolled Lines of Coverage

Inland Marine forms not filed with or through any rating bureau.

Developed by individual insurers.

Ocean Marine Insurance

Insures the transportation of goods and merchandise by vessels crossing domestic and foreign waters, as well as any inland or aviation transit connected with the shipment

Also provide coverage for the shipping vessel itself

Commercial Articles Coverage Form

Coverage provides worldwide insurance for cameras, projection machines, films, musical instruments, related equipment, and similar property of others in the insured's care when these items are used for business or commercial purpose

Contractors Equipment Floater

Provides open perils coverage on the insured's equipment, such as mobile tools, equipment, and machinery, including small hand tools, mobile equipment, forklifts, compressors, and generators used in contracted work

Domestic Shipments and Property in Transit

Includes shipments on consignment, for sale or distribution, for approval or auction, while in transit, while in the custody of others, and while being returned