Commercial Property Policy
No matter the size or type of business, tangible property is a major asset. A national standard for insuring such property is the Insurance Services Office (ISO) Commercial Property Program (CPP). The CPP may be written either as a single policy (covering only buildings and property) or as a package (providing property, liability and, other important protection) for your business.
The Parts of A CPP
A Commercial Property Policy is flexible because it consists of several basic parts or forms:
- Declarations Forms - these tell you who is covered, the amount of insurance, the type of coverage written, other information about the business and other identifying details.
- Conditions Forms - these documents contain sets of conditions that control how the policy operates such as the customer's duties when a loss occurs, the method used for settling a loss or what steps to take when the customer and the insurer disagree over the amount of a loss.
- Coverage Forms - these include descriptions of the type of property that is covered or excluded and it explains items such as coverages, insurance limits, definitions, deductibles and other important provisions.
- Causes of Loss Forms - as you might expect, these forms describe the causes of loss (perils) that are insured against and any exclusions.
- Policy Cover or Jacket - this is, literally, a cover designed by the company providing the policy and it usually includes a table of contents or an index.
The above, basic parts can be modified or supplemented to better fit different types of businesses by adding a wide variety of optional coverage forms called endorsements.
Causes Of Loss Forms
The following Causes of Loss Forms are available under the CPP:
- BASIC - protects against Fire, Lightning, Explosion, Windstorm, Hail, Smoke, Aircraft or Vehicles, Riot or Civil Commotion, Sprinkler Leakage, Vandalism, Sinkhole Collapse, and Volcanic Action
- BROAD - adds several additional covered causes of loss over the Basic Form, including Breakage of Glass, Falling Objects, Weight of Snow, Ice, or Sleet, and Water Damage.
- SPECIAL - provides coverage on an "all risk" basis which essentially covers anything not otherwise excluded.
- EARTHQUAKE - covers earthquake shocks or volcanic eruptions that occur within any 168-hour period.
What is covered?
See Commercial Property Coverages
What is not covered?
Like any insurance policy, there are items that are not covered. A CPP does not provide coverage for:
- Accounts, bills, currency (and similar property)
- Automobiles held for sale, most vehicles
- Bridges, roadways, walks, patios, or other paved surfaces
- Property being transported by air or over waterways
- Land, crops, underground property
- Expenses related to replacing company records and other property
Again, this is just a very brief discussion of the CPP. If you need more information, help is nearby. Contact a Towne Insurance professional to talk about coverages and your coverage needs.