ISO TIME ELEMENT COVERAGE FORMS AVAILABLE ENDORSEMENTS AND THEIR USES

(June 2019)

INTRODUCTION

This listing identifies endorsements available to modify the Insurance Services Office (ISO) Time Element Coverage Forms. It is arranged by form number and title and includes a brief explanation of the use of each form. This section does not include any state specific endorsements.

Note: Endorsements added and/or changed with and after the 10 12 edition are in bold type.

FORM NUMBERING

The ten-digit numbering sequence of ISO forms and endorsements has a very specific meaning.

The first two entries are alphabetical characters that indicate the line of insurance involved. For example, "CP" denotes "Commercial Property."
The next two digits designate the specific insurance category. Additional detail and information on these categories are in the next section below.
The next two digits are the form or endorsement number within the insurance category.
The last four digits are the edition date of the form or endorsement expressed in month and year format. These digits are not used in this analysis.

CATEGORY CP 00–COVERAGE FORMS

CP 00 30–Business Income (And Extra Expense) Coverage Form

CP 00 32–Business Income (Without Extra Expense) Coverage Form

CP 00 50–Extra Expense Coverage Form

CP 00 60–Leasehold Interest Coverage Form

CP 00 90–Commercial Property Conditions

CATEGORY CP 01–AMENDATORY ENDORSEMENTS

CP 01 40–Exclusion of Loss Due to Virus or Bacteria

This is a mandatory endorsement in a number of states. It is an absolute exclusion that eliminates all loss or damage caused by disease or illness that causes viruses and microorganisms. Most states use this version of the endorsement, but others may use a different version that has the same title but a different form number. The intent of all versions is similar.

CATEGORY CP 04–ADDITIONAL COVERAGE ENDORSEMENTS

CP 04 02–Increased Cost of Loss and Related Expenses for Green Upgrades (10 12 changes)

This endorsement allows the insured to anticipate replacing existing non-green construction with green construction following a loss. A percentage of the limit of insurance must be entered on the endorsement schedule, along with the maximum limit to be paid for such upgrades. In addition, business income coverage period of restoration can be extended for the additional time needed for such upgrades. Changes made in the 10 12 edition mesh with changes in CP 00 10 to add flexibility in scheduling on the endorsement and to address deductible concerns.

CP 04 08–Higher Limits (10 12 addition)

This endorsement is available to increase Coverage Extensions, Additional Coverage, and Theft Limitations limits in the coverage form. Any limit entered replaces the existing limit within the coverage form. It is not added to the existing limit. It can be used only if the coverage form states that the limit can be increased.

CP 04 10–Electrical Apparatus

This coverage form is mandatory on policies that cover public service light, power, and utility property. It modifies the artificially generated exclusion in the causes of loss form by expanding the exception for resulting fire to resulting fire, explosion, or electricity to covered property electrical apparatus. This endorsement includes a $1,000 minimum deductible.

CP 04 11–Protective Safeguards (09 17 change)

This endorsement applies only for the fire cause of loss and replaces IL 04 15. It is required when the insurance company provides a premium credit because of any listed protective safeguard. This endorsement lists and describes the various scheduled services or protective safeguards on the insured's premises and requires that the insured keep them in working order which includes being maintained in an “on” position. Protective safeguards are identified by a symbol for automatic sprinkler systems, automatic fire alarms, security services, and service contracts with private fire departments.

Important Note: This is a warranty. If a fire loss occurs and the described systems are not in proper working order at the time, the insurance company will not pay for the loss.

CP 04 14–Limited Coverage for Unmanned Aircraft (Scheduled and/or Blanket Coverage) (12 16 addition)

Unmanned aircraft that are used off premises are considered Property Not Covered unless this endorsement is attached. The aircraft must be described with a scheduled limit of insurance. Valuation can be either ACV or RCV. Coverage can be blanketed. Business income and extra expense coverages can be purchased. This is available only with CP 10 30–Causes of Loss-Special Form. An important limitation is that coverage does not apply when the aircraft is used to deliver goods to others.

CP 04 30–Electronic Commerce (E-Commerce)

CP 04 31–Changes–Fungus, Wet Rot, Dry Rot, and Bacteria

This endorsement replaces the $15,000 limit for Additional Coverage–Limited Coverage for Fungus, Wet Rot, Dry Rot and Bacteria in any of the causes of loss forms with the limit on the endorsement schedule. The limit can apply per location.

CATEGORY CP 10–CAUSES OF LOSS ENDORSEMENTS

CP 10 10–Causes of Loss–Basic Form

CP 10 20–Causes of Loss–Broad Form

CP 10 28–Earthquake and Volcanic Eruption Coverage with Flat-Dollar Deductible (02 19 addition)

CP 10 29–Earthquake and Volcanic Eruption Coverage (Sub-Limit Form with Flat-Dollar Deductible) (02 19 addition)

CP 10 30–Causes of Loss–Special Form (09 17 change)

CP 10 32–Water Exclusion Endorsement (10 12 change)

This endorsement is withdrawn because its language was incorporated into the 10 12 Causes of Loss Forms.

CP 10 33–Theft Exclusion (10 12 change)

(Use with CP 10 30)

This endorsement restricts coverage. It allows the named insured to have all the advantages of the Causes of Loss–Special Form without paying the price for theft coverage. It may be used as an underwriting tool, as a cost savings device, or to prevent duplicate coverage because an inland marine coverage form provides theft coverage. It excludes all theft losses except those that occur during looting that accompanies a riot. Coverage also applies to loss or damage caused by or that result from burglars attempting to enter or exit the premises. The 10 12 edition adds a schedule to the endorsement.

CP 10 34–Exclusion of Loss Due to By-Products of Production or Processing Operations (Rental Properties) (10 12 addition)

A tenant’s operations may produce vapor, gas, smoke, or other substances as a regular part of the production. In such cases, this endorsement can be added to the property owner’s coverage form to exclude any damage those releases cause. Examples of such releases are meth-house situations, grease residue, and other legal or illegal substances. This applies to only the buildings and locations on the endorsement schedule.

CP 10 35–Watercraft Exclusion

(Use with CP 10 30)

This endorsement excludes loss or damage to retaining walls, bulkheads, pilings, piers, wharves, and docks that a watercraft strikes. It is mandatory only if such waterfront property has been added to the coverage using CP 14 10–Additional Property.

CP 10 36–Limitations on Coverage for Roof Surfacing (10 12 addition)

This endorsement restricts coverage. It contains two potential limitations. The first changes roof valuation from replacement cost to actual cash value. The second excludes wind or hail damage to the roof that is considered only superficial or cosmetic. The premises must be scheduled along with the limitation(s) selected.

CP 10 37–Radioactive Contamination

This endorsement adds limited or broad radiation coverage to the property and/or income on the endorsement schedule. The limited coverage provides coverage only if another cause of loss triggers the contamination. The broad coverage does not require that another cause of loss be involved.

CP 10 38–Discharge from Sewer, Drain or Sump (Not Flood-related) (10 12 addition)

This endorsement covers direct damage and/or business income caused by sewer, drain, or sump water or waterborne discharge. The discharge cannot be the result of a flood. A limit must be entered on the endorsement schedule that may or may not be subject to an annual aggregate based on the entries made on the endorsement schedule.

CP 10 39–Sprinkler Leakage–Earthquake Extension

This endorsement was withdrawn in 2001. CP 10 40–Earthquake and Volcanic Eruption Endorsement now provides this coverage.

CP 10 40–Earthquake and Volcanic Eruption Coverage With Percentage Deductible (02 19 change)

CP 10 41–Earthquake Inception Extension (02 19 change)

CP 10 44–Theft of Building Materials and Supplies (Other than Builders Risk) (10 12 addition)

(Use with CP 10 30)

Building materials intended to become part of the named insured’s building are covered for theft when this endorsement is used. However, the coverage is subject to the limit and the deductible on the endorsement schedule. This endorsement is needed because theft coverage under CP 10 30 does not apply to this property.

CP 10 45–Earthquake and Volcanic Eruption Coverage (Sub-limit Form with Percentage Deductible) (02 19 change)

CP 10 46–Equipment Breakdown Cause of Loss (10 12 addition)

(Use with CP 10 30)

CP 10 47–Suspension or Reinstatement of Coverage for Loss Caused by Breakdown of Certain Equipment (10 12 addition)

CP 10 51–Grain Properties–Explosion Limitation

(Use with CP 10 10, CP 10 20, and CP 00 99)

This restrictive endorsement is mandatory when insuring grain properties. It excludes coverage under the explosion cause of loss for any explosion due to changes in temperature.

CP 10 52–Broken or Cracked Glass Exclusion Form

This endorsement excludes loss or damage that is the result of existing breaks or cracks listed and described on the endorsement schedule.

CP 10 54–Windstorm or Hail Exclusion

This endorsement excludes windstorm and hail as covered causes of loss at the locations listed on the endorsement schedule.

CP 10 55–Vandalism Exclusion

This endorsement excludes vandalism as a covered cause of loss at the locations listed on the endorsement schedule.

CP 10 56–Sprinkler Leakage Exclusion

This endorsement excludes sprinkler leakage as a covered cause of loss at the locations listed on the endorsement schedule.

CP 10 60–Molten Material

(Use with CP 10 10, CP 10 20, and CP 00 99)

This endorsement adds Molten Material as a covered cause of loss. This means that loss or damage caused by molten material accidentally discharged from equipment is covered.

CP 10 65–Flood Coverage Endorsement

Related Article: CP 10 65–Flood Coverage Endorsement

CP 10 70–Pier and Wharf Additional Covered Causes of Loss

(Use with CP 10 10, CP 10 20, and CP 00 99)

The coverage this endorsement provides is specific to damage to piers and wharves. It should be used only if piers and wharves have been added as covered property using CP 14 10–Additional Covered Property. This additional cause of loss is for damage caused by floating ice as well as if a vessel or floating object collides with the pier or wharf.

CATEGORY CP 12–GENERAL ENDORSEMENTS

CP 12 01–Commercial Property Coverage Part Policy Changes

This general-purpose endorsement is used to list and summarize endorsement and premium changes to a commercial property coverage form or policy.

CP 12 05–Commercial Property Coverage Part Supplemental Declarations

This supplemental declarations was withdrawn with the 10 00 edition and replaced by CP DS 01.

CP 12 11–Burglary and Robbery Protective Safeguards (09 17 change)

This endorsement applies only for the theft cause of loss. It excludes all coverage for theft if, at the time of the loss, the scheduled burglary and robbery protective safeguards are not in working order. In working order includes that the system be turned on and active during non-work hours and while the premises is not occupied.

Important: This is a warranty that voids theft coverage if the described systems are not in working order at the time of loss.

CP 12 40–Commercial Property Coverage Part Renewal Endorsement

This endorsement was withdrawn with the 10 00 edition and replaced by CP DS 02.

CP 12 60–Loss Adjustment Endorsement–Commercial Property Coverage

This schedule was withdrawn and replaced by CP 12 70.

CP 12 70–Joint or Disputed Loss Agreement

This endorsement should be attached when property covered under the commercial property coverage form is also covered under a boiler and machinery or equipment breakdown coverage form. It is especially important when different carriers provide the property and equipment breakdown coverage. It details how a loss that potentially involves both coverage forms are to be settled. The intent of the endorsement is to compensate the named insured promptly and to encourage the carriers providing the coverages to resolve the coverage dispute without delaying the insured's settlement.

CATEGORY CP 15–TIME ELEMENT ENDORSEMENTS

CP 15 01–Business Income from Dependent Properties Limited International Coverage (10 12 change)

CP 15 02–Extra Expense from Dependent Properties Limited International Coverage (10 12 change)

CP 15 03–Business Income–Landlord as Additional Insured (Rental Value)

This endorsement is used to meet a tenant's contractual obligation to provide coverage for the landlord's rental value. The limit, business income coverage form number, coinsurance, and causes of loss form that applies must be entered on the endorsement schedule. The tenant is not required to carry any other type of business income coverage.

CP 15 04–Discretionary Payroll Expense

This endorsement includes payroll expenses for the listed job classifications or employees without requiring that those expenses be necessary for operations to resume. An option is available to limit coverage to a maximum number of days.

CP 15 05–Food Contamination (Business Interruption and Extra Expense) (10 12 addition)

This endorsement provides expenses to pay for the cleanup following closure by a government authority. It also covers advertising to restore the business’s reputation, loss of income, replacement of contaminated food and employee vaccinations that are related to the closure.

CP 15 06–Off-premises Interruption of Business – Vehicles and Mobile Equipment (02 14 addition)

Businesses that depend on mobile equipment or vehicles to sustain their operations can purchase this endorsement. Extra expenses and loss of business income coverage is provided when the scheduled equipment and/or vehicles are damaged by a covered cause of loss.

CP 15 07–Expanded Limits on Loss Payment

This endorsement customizes the extra expense period of restoration. The number of time periods and the percentages that apply to each time period can be modified to suit a specific operation's needs.

CP 15 08–Business Income from Dependent Properties–Broad Form (10 12 change)

CP 15 09–Business Income from Dependent Properties–Limited Form (10 12 change)

CP 15 10–Payroll Limitation or Exclusion (10 12 change)

This endorsement allows the insured to completely exclude payroll expenses for selected groups of employees. The expenses may be totally excluded or be limited to only a selected number of days. The 10 12 edition eliminates the term “ordinary payroll.” It also increases flexibility by introducing scheduling options. This approach means that the insured can carry a lower limit of insurance in return for a premium surcharge.

CP 15 11–Power, Heat and Refrigeration Deduction

This endorsement excludes the costs of power, heat, or refrigeration used in production operations from continuing business expenses. If utility obligations do not continue after a loss, the named insured might include this endorsement and deduct the cost of power, heat, and refrigeration from its business income limit of insurance. This approach means that the named insured can carry a lower limit of insurance in return for a premium surcharge, but the result is usually a lower net premium.

CP 15 13–Seasonal Leases–Monthly Limits on Loss Payment

This endorsement recognizes that many rental properties are seasonal. Coverage applies only for the months and limits entered in the spaces provided. Coverage applies if the named insured occupies the property or rents it to others.

CP 15 15–Business Income Report/Work Sheet (10 12 change)

CP 15 20–Business Income Premium Adjustment

CP 15 24–Mining Properties–Business Income

CP 15 25–Business Income Changes–Educational Institutions

CP 15 29–Electronic Media and Records

This endorsement was withdrawn with the 04 02 edition.

CP 15 31–Ordinance or Law–Increased Period of Restoration (09 17 change)

CP 15 32–Civil Authority Changes

Related Article: CP 15 32–Civil Authority Change(s)

CP 15 34–Extra Expense from Dependent Properties (10 12 change)

CP 15 45–Utility Services–Time Element (09 17 change)

CP 15 50–Radio or Television Antennas–Business Income or Extra Expense (10 12 change)

Business income coverage forms exclude loss of income due to damage to radio or television antennas. This endorsement eliminates that exclusion. The 10 12 edition included minor editorial changes that do not affect coverage.

CP 15 55–Business Income Changes–Time Period

This endorsement was withdrawn in the 06 07 edition.

CP 15 56–Business Income Changes–Beginning of the Period of Restoration

CP 15 57–Business Income and/or Extra Expense Coverage for Year 2000 Computer-Related and Other Electronic Problems

This endorsement can be added only if IL 09 35–Exclusion of Certain Computer-Related Losses is attached. It softens that exclusion by providing an annual aggregate of $25,000 for such computer-related losses.

CATEGORY CP 60–LEASEHOLD INTEREST FACTOR TABLES

Each of these endorsements provides supplementary information to be used with CP 00 60–Leasehold Interest Coverage Form. Each contains a schedule of factors at the stated percentage for use with the coverage form.

CP 60 05–Leasehold Interest Factors For 5.0%

CP 60 06–Leasehold Interest Factors For 6.0%

CP 60 07–Leasehold Interest Factors For 7.0%

CP 60 08–Leasehold Interest Factors For 8.0%

CP 60 09–Leasehold Interest Factors For 9.0%

CP 60 10–Leasehold Interest Factors For 10.0%

CP 60 11–Leasehold Interest Factors For 11.0%

CP 60 12–Leasehold Interest Factors For 12.0%

CP 60 13–Leasehold Interest Factors For 13.0%

CP 60 14–Leasehold Interest Factors For 14.0%

CP 60 15–Leasehold Interest Factors For 15.0%

ISO TIME ELEMENT COVERAGE FORMS AVAILABLE ENDORSEMENTS AND THEIR USES

INTRODUCTION

FORM NUMBERING

CATEGORIES

CATEGORY CP 00–COVERAGE FORMS

CATEGORY CP 10–CAUSES OF LOSS ENDORSEMENTS

CATEGORY CP 12–GENERAL ENDORSEMENTS

CATEGORY CP 15–TIME ELEMENT ENDORSEMENTS

CATEGORY CP 60–LEASEHOLD INTEREST FACTOR TABLES