Commercial Property InsuranceProperty Risk ManagementIdentify and Analyze Loss ExposuresOverview of Commercial Property InsuranceISO Commercial Lines Program (1986)Building and Personal Property Coverage Covered PropertyProperty Not Covered under BPP Table 10-3Property Not Covered - continuedBuilding and Personal Property CoverageSlide 10Covered Causes of LossExtended Coverage (W.C.SHAVER)BPP Cause of Loss OptionsCommercial Property InsuranceChapter 10Business Property InsuranceAppendix CBuilding and Personal Property Coverage FormProperty Risk ManagementProperty loss - any loss that a person or organization sustains as a result of the damaging, destruction, taking or loss of use of property in which that person or organization has a financial interestRisk Management Process1 - Identify and analyze loss exposures2 - Examine the feasibility of alternative risk management techniques3 - Select the best risk management technique4 - Implement the technique5 - Monitor the programIdentify and Analyze Loss ExposuresProperty Loss Exposures1 - The item exposed to lossReal propertyPersonal propertyValuable information2 - The cause of loss – anything that couldcause a loss to property3 - The effects of lossReduction in valueIncreased cost to repair or replaceLoss of revenueExtra expenseDirect loss and indirect lossOverview of Commercial Property InsuranceInsurance Advisory OrganizationsInsurance Services Office (ISO)American Association of Insurance Services (AAIS)Develop and file with state insurance departments:Policy formsManual rulesLoss costsISO Commercial Lines Program (1986)“Commercial property”Building and contents (on or within 100’ of insured location)Boiler and machineryCommercial crimeEmployee dishonesty, forgery, theft, burglary, robbery, extortionCommercial inland marineElements of transportation or communicationProperty in transit, mobile equipment, property being installed by a contractor, bridges, radio towersFarmCommercial auto and liabilityBuilding and Personal Property Coverage Covered Property Building - Table 10-1Your business personal property – Table 10-2Property owned by the insuredFurniture and fixturesMachinery and equipment“Stock”All other personal property owned by you and used in your businessProperty owned by othersLabor, materials or services furnished on property of othersImprovements and bettermentsLeased personal propertyPersonal property of others$2500 for property in the care, custody or control of insuredProperty Not Covered under BPPTable 10-3Buildings and other real propertyLand RoadwaysWater Retaining wallsBridges PiersPlants and outdoor propertyGrowing crops and lawnsOutdoor cropsOutdoor trees, shrubs and plantsOutdoor fencesOutdoor signs, unless attached to buildingsProperty Not Covered - continuedOther personal propertyDeedsEvidence of debtMoneyCurrencyAccounts BillsSecurities and notesAlso, food stampsVehicles, Watercraft, AircraftAnimalsValuable papers and recordsProperty otherwise covered (BPP is excess)ContrabandBuilding and Personal Property CoverageCovered locationsDescribed locations and off premisesAdditional coverages – Table 10-4Debris removalPollutant cleanup and removalPreservation of propertyFire department service chargeBuilding and Personal Property CoverageCoverage Extensions – Table 10-4Newly acquired or constructed propertyPersonal effects and property of othersValuable papers and recordsProperty off premisesOutdoor propertyCovered only for fire, lightning,explosion, riot or civil commotion or aircraftCovered Causes of LossEvolutionFireFire and lightning (Standard Fire Policy)Extended coverage (EC)Vandalism and malicious mischief (VMM)Extended Coverage(W.C.SHAVER)WindCivil commotionSmokeHailAircraftVehiclesExplosionRiotBPP Cause of Loss OptionsBasic Form – Table 10-5Fire, lightning and extended coveragesSprinkler leakageSinkhole collapseVolcanic actionBroad Form – Table 10-5Basic form perils plusWeight of snow, ice or sleetWater damageFalling objectsBreakage of glassSpecial Form – All RiskIncludes limited coverage for