WHO NEEDS INLAND MARINE COVERAGE?

(August 2018)

INTRODUCTION

The answer to this question is…probably everyone! Even though basic or standard commercial property coverage forms and policies take care of most property insurance needs, gaps in coverage usually remain and losses can occur in situations where there is no coverage. Several inland marine floaters, coverage forms, and policies are available to provide the coverage needed to eliminate those gaps in coverage and to cover property or situations that most commercial property coverage forms and policies do not cover. Here are some of the more common coverage forms to consider.

Accounts Receivable Coverage Form

Every insured should consider this important coverage. The basic property forms do not provide this important coverage and the BOPS and expanded coverage forms provide only small sub-limits. The coverage is also much narrower than that provided by the inland marine coverage forms.

ISO Accounts Receivable Coverage Form

AAIS Accounts Receivable Coverage

Commercial Articles Coverage Form

This coverage form is custom-made for schools because it covers both camera equipment and musical instruments. However, its use should not be limited to only schools. Many other business and government entities can use this coverage form because they use cameras as part of their normal everyday operations but do not realize that the gaps in the standard commercial property coverage forms and policies could result in them not being covered.

Related Article: ISO Commercial Articles Coverage Form

Signs Coverage Forms

Standard commercial property coverage forms and policies do not usually cover neon signs when they are not attached to covered buildings and, when they are attached, the sub-limit is often inadequate. There are exceptions and coverage options but for larger signs and especially ones that are not on the named premises, separate inland marine coverage should be considered.

ISO Signs Coverage Form

AAIS Sign Coverage

Bailees Coverage Forms

Any commercial operation that has custody of property of others or that works on, services, or repairs the property of others can use these coverage forms. They have applications beyond just laundry and dry-cleaning operations. While coverage for property of others is available on commercial property coverage forms and policies, the exclusions and limitations create gaps.

AAIS Bailee Customers Floater Coverage–Dry Cleaners and Laundry Coverage Form

AAIS Miscellaneous Bailee–Processor Floater Coverage Form

ISO Bailees Customers Coverage Form

Builders Risk Coverage Forms

These coverage forms are often written on a blanket basis for the benefit of contractors that do the construction work. Some project owners may find it beneficial to have a policy in its own name to maintain control of the limits and coverage.

AAIS Builders Risk Coverage Forms

AAIS Installation Floater Coverage Forms

ISO Builders Risk Coverage Form

ISO Installation Coverage Form

Contractors Equipment Coverage Forms

Contractors equipment is a significant property exposure for most contractors. Other types of business also use contractors equipment in their operations. Those other types may assume that their commercial property coverage forms and policies cover this equipment and they may be right…in some cases and/or up to a point. However, that equipment is usually excluded when it is not on the covered premises and the causes of loss are much more limited than on the inland marine forms.

AAIS Contractors Equipment Coverage Forms

AAIS Mobile Equipment Floater Coverage Form

ISO Contractors Equipment Coverage Form

ISO Machinery and Equipment Coverage Form

Difference in Conditions (DIC) Coverage Forms

These coverage forms are frequently used to fill gaps in coverage. They cover perils or causes of loss that many primary property coverage forms and policies exclude, such as flood and earthquake. It is the best way to cover these perils/causes of loss as well as to pick up a little extra “just in case” coverage. The DIC is a flexible product for insureds with substantial property values at a single location or those that have property at many locations. Many risk managers consider this to be “must have” coverage.

AAIS Difference in Conditions Form–Property Coverage Part

ISO Difference in Conditions Coverage Form

Electronic Data Processing Coverage Forms

This should be a required minimum standard coverage for every insured because it is hard to imagine a business that has equipment, operations, or applications that doesn’t use computers or electronic technology. Even the smallest insured should consider this coverage. An important feature is the hacker/virus protection that can be purchased.

AAIS Electronic Data Processing Equipment and Business Computer Coverage Forms

ISO Computer Systems Coverage Form

Fine Arts Coverage Forms

Any insured business may have antiques, paintings, statues, tapestries, or other objects that qualify as fine arts. If the insured points out a specific item and brags about the artist, its value, or age, that item is probably an object of fine art. Fine Arts Coverage Forms are the best way to adequately insure valuable objects. The time to evaluate the coverage and limits required to properly insure an antique roll-top desk is before a loss occurs, not after. After a loss, the insurance company will probably determine that all it must pay is the replacement cost new for a desk that performs essentially the same functions as the antique desk.

AAIS Fine Arts Coverage Forms

ISO Commercial Fine Arts Coverage Form

Property Floater Coverage Forms

Nearly every insured has miscellaneous property items to insure. Some property regularly "floats" and moves from one location to another as a normal part of business operations. The insured may attend conventions or exhibitions. If it does, it should properly insure the property it takes to these off-site activities. Insureds that have salespersons who have samples to use in their demonstrations and selling activities need to insure those samples. Insureds with these or similar exposures are candidates for one or more of several miscellaneous Property Floater Coverage Forms.

ISO Physician and Surgeons Equipment Coverage Form

AAIS Physicians and Dentists Equipment Coverage

AAIS Patterns and Dies Floater Coverage Form

ISO Patterns and Dies Coverage Form

AAIS Sales Representatives Floater Coverage Form

ISO Salespersons Samples Coverage Form

AAIS Exhibition Floater Coverage Form

ISO Exhibition Coverage Form

AAIS Mobile Equipment Floater Coverage Form

ISO Machinery and Equipment Coverage Form

Transportation Coverage Forms

Many insureds regularly ship or deliver goods and merchandise at their own risk. In these cases, the limited coverage, and sub-limits that standard property coverage forms and policies provide will not adequately cover the value of that property if a covered loss occurs. Transportation coverage should be purchased if there is a significant shipping or delivery exposure or if the value of goods and merchandise transported is significant.

AAIS Transportation Coverage Forms

ISO Annual Transit Coverage Form

ISO Motor Truck Cargo Carriers Coverage Form

ISO Motor Truck Cargo Owners Coverage Form

Valuable Papers and Records Coverage Forms

Every insured should consider this important coverage. The basic property forms provide a very limited type of this important coverage, but it is very limited coverage with a low sub-limit. The BOPS and expanded coverage forms provide only small sub-limits. The coverage is also much narrower than that provided by the inland marine coverage forms. This is very important for any operation with a significant library or archive.

ISO Valuable Papers and Records Coverage Form

AAIS Valuable Papers and Records Coverage