Businesses can vary in size — from a one-person firm to a highly complex industrial operation that employs hundreds or thousands of people. All face property loss exposures that need to be dealt with from an insurance and risk management standpoint. Those property loss exposures include owned and leased real and personal property, as well as property owned by others for which the insured is responsible. While smaller commercial firms typically are covered under a businessowners policy — a package policy that includes coverage for the property, general liability and limited auto exposures — larger commercial businesses need separate general liability, commercial property and commercial auto coverage.
By its nature, insurance is regarded by many as slow to change. However, that is not entirely true. Changes in policy language, filings, and loss experience are relatively frequent, and when changes come, they should not be lightly regarded.
An important case in point is ISO’s (Insurance Services Office) recent revisions to two commercial property insurance forms — the Building and Personal Property Form and the Causes of Loss – Special Form. Involving coverages for business personal property, electronic data, debris removal, business interruption and other key exposures, these changes will impact the protection many businesses have, don’t have or need to understand better.
They also encompass six new optional commercial property endorsements, addressing exposures like discharge from sewers and drains, equipment breakdown, food contamination and limitations on coverage for roof surfacing. In this E-Edition of Adjusting Today veteran claims professional and respected author Robert J. Prahl summarizes these latest developments. It’s important reading for anyone involved in planning or administering a commercial insurance program.
Sheila E. Salvatore Editor