Commercial Property Insurance

Causes of Loss Forms

Four causes of Loss Forms:

• Basic

• Broad

• Special

• Earthquake (only used with one of the above)

Indirect Loss

A second or financial loss occurring as the result of a direct loss.

Time Element

Time Element Coverage:
Covers actual loss of business income sustained during the period of restoration due to suspension of operations, as a result of a direct physical loss caused by a covered loss.

Optional Coverage

• Agreed Value

• Inflation Guard

• Replacement Cost

• Extension of Replacement Cost to Personal Property of Others

Extra Expense

The necessary expenses incurred by the insured during the 'period of restoration'that would not have been incurred had the covered loss not occurred.

Policy Period

Specifies that coverage applies only to a loss or losses that occur during the policy period stipulated on the Declaration Page of the policy.

Electronic Data

• Includes information, facts, computer programs, and the cost to replace or restore such information.

• Pays up to $2,500 aggregate in any one policy year for the cost to replace or restore electronic data that has been destroyed or corrupted by a covered cause of loss.

Inflation Guard

• The limit of insurance for property subject to this additional coverage automatically increases by the annual percentage shown in the Declarations.

• This percentage of increase is applied to the policy at the rate of 1/365 of each year.

Extra Expense Coverage Form

Time Element Coverage: Covers additional expenses that are incurred during the period of restoration, which the insured would not have incurred if there had been no direct physical loss (such as relocation expenses and costs to equip a temporary location).

Common Policy Conditions

• Cancellation

• Changes

• Examination of Your Books and Records

• Inspections and Surveys

• Premiums

Mortgage Holder

Policy will pay to each mortgage holder shown in the Declarations its share of a covered loss or damage, in order of precedence, as its interests may appear.

Condominium Association Form

Used in place of the Building and Personal Property Coverage Form when insuring buildings and fixtures that are a part of the building insured by a condominium association.
Includes coverage for building items such as refrigerators, air conditioners, and other appliances, owned by the Association.

Common Policy Declarations Page

Shows the Who, What, When, Where, and how much that applies to the insurance provided by the policy.
It defines each of the coverage parts included on the policy.