ISO NON-FILED INLAND MARINE COVERAGE FORMS OVERVIEW

(April 2018)

WHAT "NON-FILED" MEANS

Non-filed Inland Marine lines are Inland Marine coverage forms that are not usually subject to state form, rate, or rule filing requirements. The coverage forms presented in this section are considered not filed based on the Nationwide Inland Marine Definition. Non-filed lines are such because the coverage provided is subject to numerous variables that make a quantified and logical rate structure difficult. This permits variations so that the insurance can match the exact exposure presented. However, this flexibility is a two-edged sword for the insured. When the market for a specific line of insurance is soft, negotiations with the right underwriter can minimize pricing and maximize coverage. On the other hand, when the market for that line is hard and loss experience is poor, another underwriter can limit coverage and significantly increase pricing. Larger risks still have some influence but smaller ones are subject to significant swings in both price and coverage.

Another concern for consumers and agents is the difficulty in comparing coverages. Although coverage forms may have similar names, there can be significant differences in coverage, application of deductibles and coinsurance, and limits of insurance. It is difficult to change insurance companies because the differences in coverage can be considerable. Experience and knowledge are the keys to handling non-filed Inland Marine. The right underwriter can create a coverage that fits the insured like a glove. The wrong underwriter can leave an insured poorly coverage with significant gaps that are revealed only when a loss occurs. Care and communication between all parties is essential to avoid embarrassment and a loss that is not covered.

Please note that some classes included in this section as non-filed may be subject to filing requirements in a particular state.

BRIEF DESCRIPTION OF THE ISO NON-FILED INLAND MARINE COVERAGE FORMS

ISO Animal Mortality Coverage Form

Property Covered:

Animals other than those traditionally covered under filed livestock coverage forms or farm policies. The types of animals eligible for coverage range from valuable horses and cattle of all ages, to those being grown and exhibited under a club’s sponsorship, to racehorses, show dogs and cats, to laboratory and circus animals.

Causes of Loss:

This coverage form covers death caused by or that results from an accident, injury, sickness, or disease.

Considerations:

This coverage form is term life insurance on animals. The valuation basis of each animal is the price the animal might have sold for if it had been offered for sale just before its death.

ISO Annual Transit Coverage Form

Property Covered:

Property that businesses and individuals own that are being transported from one location to another

Causes of Loss:

Direct physical loss or damage, except as excluded. Earthquake and flood are covered causes of loss.

Considerations:

Rail, contract carriers, common carriers, air carriers, messengers, on vehicles of others, and even on the named insured’s own vehicles, may ship the goods. Most types of property shipped on any of these modes of conveyance are covered but certain types of property are excluded. Coverage is usually written on an annual basis but may be written for a continuous term subject to annual re-rating.

ISO Bailees Customers Coverage Form

Property Covered:

Property of others in the named insured's care, custody, and control for dry cleaning, laundering, dyeing, alterations, repairs, and similar or related work

Causes of Loss:

Direct physical loss or damage, except as excluded

Considerations:

Coverage applies in cases where the named insured is legally liable for loss or damage that occurs and also when the loss or damage is the result of circumstances that are beyond the bailee's control and for which it is not negligent.

ISO Boat Dealers Coverage Form

Property Covered:

Property of boat dealers that consists of a variety of boats, motors, trailers, equipment, accessories, and supplies. Other property covered is motorized watercraft, sailing vessels, pontoon boats, and personal watercraft, such as jet skis.

Causes of Loss:

Direct physical loss or damage, except as excluded.

Considerations:

Coverage applies to the named insured's sold and unsold merchandise and to the similar property of others in its care, custody, or control on consignment and held for sale. Coverage can be extended to cover furniture, fixtures, office supplies, machinery, tools, fittings, patterns, molds, dies, models, improvements, betterments, and other types of property. Coverage applies at designated locations, unnamed locations, at exhibitions and trade shows, and in transit.

Related Article: Boat Dealers Coverage Form Analysis

ISO Builders Risk Coverage Form

Property Covered:

Buildings or structures during construction, renovation, or repair

Causes of Loss:

Direct physical loss or damage, except as excluded.

Considerations:

The named insured may be the building owner, the builder/contractor, or the party for whom the building is being constructed, renovated, or repaired. Coverage may apply to either a single construction project or multiple jobsites. Multiple jobs are usually written on a reporting basis. Coverage may also be written on a specific, non-reporting basis.

ISO Computer Systems Coverage Form

Property Covered:

Computer equipment, data, and media associated with computer systems that businesses use to conduct their operations. Air conditioning and fire-suppression equipment used exclusively with the computer equipment, as well as computer equipment, data and media that belongs to others in the insured's care, custody, and control can also be covered.

Causes of Loss:

Direct physical loss or damage, except as excluded

Considerations:

Coverage applies at the described location, at unnamed locations, and while in transit.

ISO Contractors Equipment Coverage Form

Property Covered:

The named insured’s owned, leased, or borrowed mobile equipment. Examples are tractors, cranes, graders, power shovels, forklifts, drills, front-end loaders, backhoes, bulldozers, machinery, draglines, concrete mixers, derricks, pile drivers, tools, and similar equipment. Employee tools can be included.

Causes of Loss:

Direct physical loss or damage, except as excluded.

Considerations:

Coverage applies at jobsites, at unnamed locations, and while in transit.

ISO Difference in Conditions Coverage Form

Property Covered:

Real and personal property

Causes of Loss:

Direct physical loss or damage, except as excluded. Earthquake and flood are often the reason the form is used.

Considerations:

Coverage applies at described locations, at unnamed locations, and while in transit. This coverage is sometimes referred to as umbrella coverage for property lines of insurance because it provides coverage that is not in underlying coverage forms and policies. Its name derives from the difference in coverage provisions between it and the underlying coverage forms and policies. The greater the number of differences in coverage between the underlying coverage and the DIC, the greater the coverage the DIC provides.

ISO Exhibition Coverage Form

Property Covered:

Property the named insured owns or has in its care, custody, or control

Causes of Loss:

Direct physical loss or damage, except as excluded.

Considerations:

Coverage applies only when covered property is on display or at exhibition sites or similar exhibits, trade shows, expositions, and fairs away from the named insured's owned, leased, or operated locations. Property while in transit is also covered. Coverage can be for a single show for a limited period or on an annual basis for risks that have numerous shows throughout the year.

Related Article: ISO Exhibition Coverage Form Analysis

ISO Commercial Fine Arts Coverage Form

Property Covered:

Fine arts a named insured who is not in the fine arts business owns or has in its care, custody, or control. Fine arts are paintings, etchings, pictures, tapestries, rare or art glass, art glass windows, valuable rugs, statuary, sculptures, antique furniture, antique jewelry, bric-a-brac, porcelains, and similar property of rarity, historical value, or artistic merit.

Causes of Loss:

Direct physical loss or damage, except as excluded.

Considerations:

Fine arts at exhibitions at fair grounds or on the premises of any national or international exhibition are not covered.

ISO Fine Arts Dealers and Galleries Coverage Form

Property Covered:

Various items of fine arts that dealers and galleries own. It covers both sold and unsold fine arts property consisting of (but not limited to) antiques, paintings, etchings, pictures, tapestries, rare or art glass, art glass windows, valuable rugs, statuary, sculptures, antique furniture, antique jewelry, bric-a-brac, porcelains, drawings, china, marble, and similar property of rarity, historical value, or artistic merit.

Causes of Loss:

Risks of direct physical loss or damage, except as excluded.

Considerations:

Coverage applies at designated locations, unnamed locations, and in transit. Works of art that belong to others in the named insured's care, custody, or control can also be covered. This coverage form is not used for fine arts museums or commercial entities that are not in the fine arts business. It has an unusual valuation section.

ISO Fine Arts Museums Coverage Form

Property Covered:

Various items of fine arts that museums own. It covers both sold and unsold fine arts property consisting of (but not limited to) antiques, paintings, etchings, pictures, tapestries, rare or art glass, art glass windows, valuable rugs, statuary, sculptures, antique furniture, antique jewelry, bric-a-brac, porcelains, drawings, china, marble, and similar property of rarity, historical value, or artistic merit.

Causes of Loss:

Direct physical loss or damage, except as excluded

Considerations:

Coverage applies at designated locations, unnamed locations, and while in transit. Works of art that belong to others in the insured's care, custody, or control can also be covered. This coverage form is not used for fine arts dealers or commercial entities that are not in the fine arts business.

ISO Furriers Block Coverage Form

Property Covered:

Furs, fur garments, fur-trimmed garments, and related accessories, including property sold but not yet delivered. Property of others in the fur trade in the furrier’s care, custody, or control, to the extent of the money it advanced or its legal liability for such property, can also be covered.

Causes of Loss:

Direct physical loss or damage, except as excluded

Considerations:

Coverage applies at the furrier’s location, property off premises, and shipments of covered property by common or contract carrier, registered mail, express carriers (or other parcel delivery services), and by railroads, passenger bus lines, and waterborne or air carriers in certain cases. It also covers certain other shipments as well as property away from the furrier's location not otherwise included above. It can also cover such property in show windows at the furrier's premises and can be used to cover similar property in the fur department of department stores. Coverage can also be extended to money that is in locked safes or vaults at the furrier's premises.

Related Article: ISO Furriers Block Coverage Form Analysis

ISO Furrier’s Customers Coverage Form

Property Covered:

Property of customers in the care, custody, or control of a business that accept furs, fur garments, and fur-trimmed garments for storage, alteration, repair, remodeling, or cleaning

Causes of Loss:

Direct physical loss or damage, except as excluded.

Considerations:

Coverage applies only if the named insured issues a receipt for the property it receives that contains the agreement between it and the customer for each article accepted. The receipt must describe the article and state its value. This limits the named insured's liability for loss to any garment to that amount. This coverage form also insures other garments or similar property the named insured customarily accepts for storage. It can also be used to cover property of customers of other bailees, property away from the named insured's premises, and property during pick-up and delivery.

ISO Installation Coverage Form

Property Covered:

Property the named insured owns or has in its care, custody, or control to be installed, fabricated, or erected into buildings being renovated, upgraded, or remodeled. This is designed to cover property that will become a permanent part of an installation or construction project.

Causes of Loss:

Direct physical loss or damage, except as excluded.

Considerations:

This coverage form insures almost any property on the construction site, as well as at temporary locations and in transit, which will eventually become a permanent part of the project.

Related Article: ISO Installation Coverage Form Analysis

ISO Installment Sales and Leased Property Coverage Form

Property Covered:

Property sold under an installment sales contract or similar type of agreement, such as a deferred or delayed payment or conditional sales agreement, as well as property leased, rented or sent out on approval

Causes of Loss:

Direct physical loss or damage, except as excluded.

Considerations:

An installment sales plan is a conditional sale or trust agreement or any deferred payment plan. Under a lease agreement, the lessee pays to use an item for a period of time after which it is purchased or returned to the lessor. This insurance can be written to cover any and all parties with a financial interest in the property. Coverage applies to any type of property except motor vehicles designed for use on public highways, aircraft, and watercraft.

ISO Jewelers Block Coverage Form

Property Covered:

Jewelry, precious, and semi-precious stones, precious metals, and other stock the jeweler uses in its business. Property of others in the named insured's care, custody, or control is also covered. However, such property owned by others in the jewelry business is limited to the amount of money the named insured advanced on it or the named insured's legal liability for such property.

Causes of Loss:

Direct physical loss or damage, except as excluded.

Considerations:

Coverage applies to property at the named insured's location, property off premises, and shipments of covered property by registered mail, armored car, merchants parcel delivery service, and by railroads, passenger bus lines, and waterborne or air carriers in certain cases. Property is valued on an actual cash value basis but not for more than the lowest amount the named insured lists for the property at the time of loss or damage. This coverage form can also be used to cover property in the jewelry, silverware, or watch department of discount or department stores.

ISO Machinery and Equipment Coverage Form

Property Covered:

Specifically described and identified mobile or portable property not on sale or consignment and not in the process of being manufactured. Examples of such property are voting machines, vending machines, Automated Teller Machines (ATM's), welding equipment, jukeboxes, and robotics. Similar property of others in the insured's care, custody, or control can also be covered.

Causes of Loss:

Direct physical loss or damage, except as excluded.

Considerations:

Covered property is mobile and subject to movement. It does not include property on sale or consignment or being manufactured. Such property must come into the custody or control of parties that intend to use the property for the express purpose for which it was manufactured or created. Covered property is valued on an actual cash value basis and must be scheduled and described.

ISO Marine Supplies Dealers Coverage Form

Property Covered:

Property of dealers of a variety of equipment, accessories, and supplies related to the marine industry. This ranges from marine pumps, generators, and compressors to fenders, ladders, buoys, and first aid kits. This form does not cover boats or other watercraft.

Causes of Loss:

Direct physical loss or damage, except as excluded.

Considerations:

Coverage applies to the named insured's sold and unsold merchandise and to similar property of others in its care, custody, or control at designated locations, unnamed locations, and in transit. Coverage can also be extended to cover furniture, fixtures, office supplies, machinery, tools, fittings, patterns, molds, dies, models, improvements, betterments, and other types of property.

ISO Miscellaneous Articles Coverage Form

Property Covered:

The named insured’s property and property of others in its care, custody, or control that is subject to periodic or frequent movement and changes in location. The property comes in a variety of sizes, shapes, and forms but usually has both a transit exposure and significant values. Some examples are camping equipment, engineering instruments and supplies, catering equipment, religious articles, relics, and artifacts.

Causes of Loss:

Direct physical loss or damage, except as excluded.

Considerations:

Because this is a miscellaneous articles form, it should be used only when another form is not more appropriate. Covered property is valued on an actual cash value basis and must be scheduled and described and a limit of insurance assigned to it.

ISO Motor Truck Cargo Carriers Coverage Form

Property Covered:

Lawful property of others the named insured hauls or transports as a common or contract carrier subject to a bill of lading and a shipping receipt it issues

Causes of Loss:

Direct physical loss or damage, except as excluded.

Considerations:

The United States Code (USC) provides guidance and direction on the liability of trucking concerns and their responsibility for the property hauled. The bill of lading or other shipping document also addresses the amount of liability for a loss that is the trucker's responsibility. Both the Code and the bill of lading establish the legal framework to determine the named insured's liability for the property hauled. The coverage form has an extensive list of property that is not eligible for coverage.

ISO Motor Truck Cargo Owners Coverage Form

Property Covered:

Shipments of owned covered property the named insured makes on its own vehicles

Causes of Loss:

Direct physical loss or damage, except as excluded.

Considerations:

Coverage is usually written on a continuous basis and is subject to annual re-rating. There may be a separate limit for single shipments and a catastrophe limit, as well as for loading and unloading. The coverage form has an extensive list of property not eligible for coverage.

ISO Patterns and Dies Coverage Form

Property Covered:

Patterns, dies, molds, and forms the named insured owns or has in its care, custody, or control

Causes of Loss:

Direct physical loss or damage, except as excluded.

Considerations:

This property involves exact design and construction and can be for any product made of plastic or metal. The value depends on the manufacturing cost and the total number of products that can be made from any one. Covered property must be specifically listed and have a limit of insurance. Coverage can be provided on a blanket basis in some cases and valuation is based on actual cash value. Coverage applies at unscheduled locations and while in transit.

ISO Processors Coverage Form

Property Covered:

Various types of property the named insured owns and property of others for which it is legally liable when at locations for processing or other work

Causes of Loss:

Direct physical loss or damage, except as excluded.

Considerations:

The types of property range from simple items like paper products and fabrics to more complicated products like furniture and machinery. Careful consideration must be given to the type of property involved and the size and type of location where the processing takes place. Processors are involved in physically modifying a product but they do not modify the product’s basic nature. Coverage applies at the processing location as well as in transit to and from the location by either carriers for hire or the named insured's own vehicles. The value of unfinished property at the time of loss can include the value of labor, materials, and services the processor furnishes if the named insured is responsible for paying for them. There is no coverage for loss caused by work or processing performed on the property.

Related Article: ISO Processors Coverage Form Analysis

ISO Radio and Television Towers and Equipment Coverage Form

Property Covered:

Radio and television towers, related equipment and appurtenances, transmitting, receiving, recording, and monitoring equipment, specified business personal property, and mobile units. Buildings can be included.

Causes of Loss:

Direct physical loss or damage, except as excluded.

Considerations:

Replacement cost valuation can be substituted in place of actual cash value on certain property. The form includes earthquake and water/flood coverage because they are not excluded, subject to specified sub-limits, aggregates, and deductibles.

ISO Railroad Rolling Stock Coverage Form

Property Covered:

Railroad rolling stock the named insured owns or has in its care, custody, or control. This includes (but is not limited to) diesel, electric, and steam locomotives, coach, baggage, diner, lounge, and passenger cars, a broad range of freight cars, and miscellaneous maintenance equipment.

Causes of Loss:

Direct physical loss or damage, except as excluded.

Considerations:

This coverage form applies to shippers, railroads, public transit authorities, utilities, individuals, and lessees that own or are responsible for railroad rolling stock. The type of equipment insured and the location or usual routes are important factors to consider. Equipment values can range from the tens of thousands of dollars on ordinary freight cars to many millions of dollars for locomotives. Valuation is based on actual cash value but the named insured has the option to establish valuation in accordance with the rules of the Association of American Railroads (AAR). When this option is applied, the value, depreciation, and repairs are adjusted according to AAR rules.

ISO Riggers Liability Coverage Form

Property Covered:

Tangible property of others in the named insured's care, custody, or control that it handles in its capacity as a rigging contractor

Causes of Loss:

Direct physical loss or damage, except as excluded.

Considerations:

This coverage form applies to contractors that lift, set in place, and move property of others. Rigging contractors (or riggers) specialize in lifting heavy property objects of others in conjunction with installation, construction, and moving operations. If the property being moved is damaged because of the rigger's negligence, the rigger may be held liable for the damages the property’s owner sustains. This coverage form includes an insuring agreement that states that the insurance company pays sums the named insured is legally obligated to pay as damages as a rigging contractor because of direct physical loss or damage to covered property from any covered cause of loss. Coverage usually ends when the named insured's liability for the property ends.

ISO Salespersons Samples Coverage Form

Property Covered:

Samples of the named insured's merchandise or stock in trade or property of others for which it is legally liable

Causes of Loss:

Direct physical loss or damage, except as excluded.

Considerations:

Coverage applies when the property is in the custody of the named insured as an individual or its authorized sales representative and in transit to and from the insured premises and the authorized sales representative. Coverage also applies to containers used with the samples but does not apply to jewelry or furs. Coverage is on a blanket basis but large, unique, or highly valued samples may be covered on a specific basis.

ISO Scientific and Medical Diagnostic Equipment Coverage Form

Property Covered:

Scheduled, listed, and described medical and scientific equipment, such as magnetic resonance imaging (MRI) machines, computer-assisted tomography (CAT) scanners, x-ray machines, and research and weather information-gathering equipment. Other materials, supplies, and books usual to the named insured's scientific or medical profession, similar property of others in the named insured's care, custody, or control, and mobile units can also be covered.

Causes of Loss:

Direct physical loss or damage, except as excluded.

Considerations:

Some medical diagnostic equipment can be valued in the millions of dollars and be located in a comparatively small room or in a tractor-trailer unit. Certain scientific equipment is used in remote or unusual places, such as a mountaintop or under water.

ISO Signs Coverage Form

Property Covered:

Various types of illuminated or non-illuminated plastic-faced signs, ordinary fixed signs, billboards, and street clocks. It does not include neon or mechanical signs.

Causes of Loss:

Direct physical loss or damage, except as excluded.

Considerations:

This property may be located inside or outside a building at a described location, be attached to it, or be free standing. These signs are eligible for coverage under Inland Marine coverage forms and policies because the Nationwide Inland Marine Definition includes them. However, neon, fluorescent, and automatic or mechanical electric signs and lamps are filed classes and must be written as such under controlled sign coverage forms. As a result, they are not eligible to be insured under this coverage form.

Related Article: ISO Signs Coverage Form Analysis

ISO Tank Storage Coverage Form

Property Covered:

Various kinds of bulk liquid storage tanks and their contents. Coverage applies to storage tanks the named insured owns or leases from others at designated locations, as well as bulk liquids the named insured owns and property of others in its care, custody, or control but only when contained in a tank.

Causes of Loss:

Direct physical loss or damage, except as excluded.

Considerations:

Dry tank commodities such as grain, oilseeds, rice, and flour are not eligible. Some states have not approved the 1976 Nationwide Inland Marine Definition and this coverage must be written in a different way in those states. Coverage can be on a scheduled or blanket basis. Tank storage facilities range from a single tank at a location to tank farms that have many tanks. The types of liquid contents and the physical characteristics of the location where manufacturing, distribution, processing, and storage take place are important factors to consider.

Related Article: ISO Tank Storage Coverage Form Analysis

ISO Trip Transit Coverage Form

Property Covered:

Property that businesses or individuals own shipped from one point to another on an individual trip basis

Causes of Loss:

Direct physical loss or damage, except as excluded.

Considerations:

Coverage applies from the time the carrier for hire takes possession of the property (or the named insured's vehicle leaves the premises where the trip begins) until the shipment arrives at the destination or is returned if not delivered (or if delivery is rejected). Certain classes of property not eligible or excluded may be added to specifically cover them.

Related Article: ISO Trip Transit Coverage Form Analysis

ISO Unmanned Aircraft Coverage Form

Property Covered:

The unmanned aircraft and related property is covered. Cargo that is owned by the named insured and cargo that is in its care, custody, and control for transport can also be covered.

Causes of Loss:

Direct physical loss or damage, except as excluded.

Considerations:

This is the first edition of this coverage form. It is fairly broad and flexible so that almost any operation can be covered and along with any type of unmanned aircraft. Anticipate that this form will change and that additional endorsements will become available as this industry matures.

ISO Warehouse Operators Legal Liability Coverage Form

Property Covered:

This coverage form applies to warehouse owners and operators that are responsible for damage to goods that customers store in their warehouses as a result of the operator's negligence. This includes public, private, bonded, and specialized warehouses.

Causes of Loss:

Direct physical loss or damage, except as excluded.

Considerations:

This coverage form covers the owners and operators of such warehouses for sums they are obligated to pay as damages as a result of loss or damage to the goods stored. It also gives the insurance company the right and duty to defend the named insured against any suit seeking those damages to which coverage applies. This includes the named insured's costs of defense, the cost of appeal bonds, reasonable expenses it incurs to help the insurance company handle the claim, awards against the named insured as a result of a suit, arbitration award, or other legal proceeding, and prejudgment and post judgment interest in conjunction with an award.

ISO Wireless Communications Equipment Coverage Form

Property Covered:

This coverage form provides wireless communications service providers with a way to insure their subscriber customers’ wireless communications equipment or devices and many kinds of related accessories, in addition to covering the provider’s interest in such property.

Causes of Loss:

Direct physical loss or damage, except as excluded.

Considerations:

This coverage form provides wireless service providers with a way to insure their subscriber customers’ wireless communications equipment or devices and many kinds of related accessories along with the provider’s interest in such property. Coverage applies to the costs to repair or replace wireless communications devices, chargers, data storage cards, ear devices, carrying cases, and batteries. Coverage applies to described property anywhere it is located.