COMMERCIAL PROPERTY COVERAGE
Types of Commercial Property Insurance coverage
The evolution in commercial property insurance was characterized by the separate parallel development of several diverse Types of Commercial Property Insurance that protect against different types of property losses. This was a natural result of the monocline structure of the industry and underwriting attitudes of insurers.
Commercial fire insurance forms, for example, traditionally provided coverage only at the insured’s premises, creating a need for a form of coverage— the marine forms—to protect property while it is away from the premises. Other forms of property insurance, such as crime insurance and boiler and machinery coverage, also developed as separate fields of insurance.
ISO Insurance Services Office
In January 1986, the Insurance Services Office (ISO) implemented a long-planned overhaul of most commercial insurance forms with the introduction of its portfolio program. This program introduced simplified policy language forms for most commercial property insurance lines, including the fire insurance, plate glass, boiler and machinery, inland marine, and crime insurance.
Although considerable progress had been achieved in simplifying and standardizing personal line policies, until the introduction of the portfolio program, commercial line forms were a hodgepodge, with each line of insurance following a different format, style, and terminology.The Commercial Property Insurance is very important
The portfolio program attempts to introduce an element of standardization into commercial line forms through innovations that were originally developed for commercial package policies. These include modular forms and standard policy conditions.
Commercial Coverages
All portfolio commercial coverages (fire and allied lines, plate glass, boiler and machinery, crime, inland marine, auto, and general liability) follow the same general format, and the structure of the policy is essentially the same regardless of the type of coverage. A commercial portfolio policy includes a standard Common Declarations part, Common Conditions part, and forms applicable to the particular line of insurance.
The Common Declarations part contains information about the insured, the inception date and term of the policy, and the premium for the coverages in the policy. Commercial Property Insurance The Common Policy Conditions Form contains items common to all (or most) types of coverage, eliminating the need to restate the same provision in each of several separate policies.
In addition, for each type of coverage, there is a separate declarations form (e.g., Property Insurance Declarations Form, Crime Insurance Declarations Form, and so on) and a coverage form or forms for the particular type of insurance. Commercial Property Insurance The portfolio forms may be used to create monocline contracts, or they may be combined to create package policies; the same forms are used in either case. If the policy includes both property and liability insurance, it becomes eligible for a package discount.
COMMERCIAL PROPERTY DIRECT LOSS COVERAGES
We begin our discussion with the commercial property coverages for direct loss. ISO’s commercial property coverage program consists of those lines of insurance that were traditionally known as fire and allied lines.A Commercial Property Insurance need is now. Allied lines referred to coverages such as earthquake and sprinkler leakage that were often allied with fire insurance coverage.
Actually, the term fire insurance itself was something of a misnomer, because coverage for loss by fire was rarely written alone. Commercial Property Insurance Generally, coverage for loss by fire was combined with coverage against other perils; the perils of extended coverage mentioned in Chapter 24 usually represented the minimum coverage package.
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