OP DS 01–CAPITAL ASSETS PROGRAM (OUTPUT POLICY) DECLARATIONS AND SCHEDULES

(December 2019)

INTRODUCTION

The Insurance Services Office (ISO) OP DS 01–Capital Assets Program (Output Policy) Declarations is a three-page self-contained form which means that the IL 00 19–Common Policy Declarations is not required unless the coverage form is part of a package. The OP DS 01 can be used alone or with one or more of the following declarations or schedules:

• OP DS 02–Supplemental Declarations amends the limits that OP 00 01–Capital Assets Program Coverage Form (Output Policy) provides.
• OP DS 03–Flood Coverage Schedule is used with OP 10 04–Flood Coverage.
• OP DS 04–Earthquake–Volcanic Eruption Coverage Schedule (Sub-limit Form) is used with OP 10 01–Earthquake–Volcanic Eruption Endorsement (Sub-limit Form).

OP DS 01–CAPITAL ASETS PROGRAM (OUTPUT POLICY) DECLARATIONS

This declarations contains the following information:

General Information

• Company Name Area is for the name of the insurance company that provides coverage.
• Mailing Address would appear to be the mailing address of the insurance company but is actually the first mailing street address or Post Office Box number used by the insurance company to communicate with the named insured.
• Named Insured is a list of all named insureds. A separate endorsement may be needed if more space is needed.

Note: The order is important. The first named insured is the one controlling the policy. The first named insured is in charge of paying the premium, collecting return premiums and cancellation or nonrenewing the policy. If the first named insured is deleted, the second named insured takes on the role of the first named insured.

• Producer Name Area is for the name of the agent or broker that produces the business.

• Policy Period states the inception and expiration dates of coverage. It begins at 12:01 A.M. standard time at the mailing address.
• Business Description has a space to briefly describe the insured business.

Note: This has no impact on coverage but does provide a description of the type of business the insurance company believes it is insuring.

Agreement

This section states that the insurance company provides the insurance described in OP 00 01 and its endorsements in return for the named insured paying the premium. All is subject to the policy’s terms and conditions.

Property Limits of Insurance

A selection must be made for one of the following:

• Blanket Building and Business Personal Property

A blanket limit of insurance is entered if this method is selected.

• Scheduled Location/Coverage Method

A limit is not entered if this is the method selected. OP 14 01–Scheduled Location is attached and the by location limits are entered on it.

Property Coverage Options

Several optional property coverages are available. Any, all, or none can be selected.

• Actual Cash Value.

This changes the property valuation from replacement cost to actual cash value.

• Automatic Increase Coverage Percentage

An entry does not select Automatic Increase but instead increases the automatic increase above the 2% that is part of the policy.

• Replacement Cost–Mobile Equipment

A selection changes the valuation for mobile equipment from actual cash value to replacement cost.

• Installment Sales Property–Dual Interest

The installment sales coverage provided in the policy is on a single interest coverage basis. When this item is selected, coverage is provided for not only the named insured but also the property purchaser.

• Limited Fungi, Wet Rot and Dry Rot Coverage

An entry does not select the Limited Fungi, Wet Rot, and Dry Rot coverage but instead increases the $15,000 limit that is part of the policy. The increase can vary by location if that option is selected. Each location with the higher limit must be listed and the higher limit shown. All locations not listed continue with the standard $15,000.

Business Income and Extra Expense/Dwelling Loss of Use Limits of Insurance

A selection must be made for one of the following:

• Blanket Business Income and Extra Expense Limit

A blanket limit of insurance is entered if this method is selected.

• Scheduled Location/Coverage Method

A limit is not entered if this is the method selected. OP 14 01–Scheduled Location is attached where the by location limits are entered.

Business Income Coverage Options/Extension

Several optional time element options and extensions are available. One and only one of the first three options must be selected. The option selected determines how coverage applies.

• Business Income and Extra Expense including Rental Value
• Business Income and Extra Expense other than Rental Value
• Rental Value and Extra Expense

These options are available but are not mandatory.

• Number of Days for Extended Business Income Coverage

An entry does not select Extended Business Income Coverage but instead increases the coverage maximum number of days from 90 that is in the policy to the number of days entered in this space.

• Number of Days for Limited Fungi, Wet Rot, and Dry Rot Coverage–BI & EE Revised

An entry does not select Limited Fungi, Wet Rot, and Dry Rot Coverage but instead increases the coverage maximum number of days from 90 that is in the policy to the number of days entered in this space.

• Coinsurance Percentage

An entry is required unless maximum period of indemnity or monthly limit of indemnity below is selected below.

Business Income and Extra Expense Valuation Options

This section has three separate entries that can be selected:

• Maximum Period of Indemnity
• Monthly Limit of Indemnity

The available options are 1/3, 1/4, and 1/6.

• Agreed Value

A limit must be entered in the space provided when this option is selected.

Deductible

The direct damage property deductible dollar amount is required.

Endorsements Effective as of Policy Period Inception Date

All endorsements that are part of this policy when it is issued are listed.

Description of Fine Arts in Transit

No piece of fine art is covered unless specifically listed in this area. If the space is too limited, additional items can be listed elsewhere provided an entry to that effect is made in this area.

Description of Valuable Papers and Records

Irreplaceable valuable papers and records are covered only when listed and described in this area. If the space is too limited, additional items can be listed elsewhere provided an entry to that effect is made in this area.

Loss Payee and/or Mortgagee

The name and address of mortgagee and loss payee must be entered. The mortgagee information is particularly important because of the cancellation and notification requirement in the mortgagee clause.

Total Premium at Policy Inception

The total premium is entered.

OP DS 02–SUPPLEMENTAL DECLARATIONS

The supplemental declarations provides a listing of all additional coverages that are subject to a limit. The purpose of the declarations is to provide a single location for the limits to be adjusted. Any limit entered is a replacement, not an addition.

Some of these coverages’ limits are sublimits of the limit of insurance. Regardless of the limit on this schedule, it remains a sub-limit to the overall policy limit. When a sublimit is increased, the location or policy limit may also need to be increased.

• Accounts Receivable
• Below Ground Water and Backup of Sewers and Drains
• Bulk Liquid Tank Storage

Note: This coverage has an occurrence limit and a separate annual aggregate limit.

• Business Personal Property off Covered Location
• Consequential Loss
• Debris Removal Additional Limit of Insurance
• Employee Theft
• Fine Arts
• Fire Department Service Charge
• Fire Extinguishing Systems Expense
• Forgery or Alteration
• Fur, Fur Garments, and Garments Trimmed with Fur
• Installment Sales Property
• Inventory and Appraisal Expense
• Jewelry, Watches, Watch Movements, Jewels, Pearls, Precious and Semi-Precious Stones, Bullion, Gold, Silver, Platinum, and Other Precious Alloys or Metals
• Limited Coverage For Fungi, Wet Rot, and Dry Rot
• Money and Securities
• Money Orders and Counterfeit Money
• Ordinance or Law–Demolition Cost
• Ordinance or Law–Increased Cost of Construction
• Personal Effects
• Pollution Cleanup and Removal
• Property in Transit
• Reward Payment
• Stamps, Tickets, and Letters of Credit
• Valuable Papers and Records
• Business Personal Property Temporarily in Portable Storage Units
• Electronic Data
• Time Element Coverages
• Interruption of Computer Operations
• Food Contamination
• Food Contamination Advertising Expense
• New Acquired Locations

OP DS 03–FLOOD COVERAGE SCHEDULE

This schedule is required when flood coverage is provided. OP 10 04–Flood Coverage also must be attached.

Related Article: OP 10 04–Flood Coverage

OP DS 04–EARTHQUAKE–VOLCANIC ERUPTION COVERAGE SCHEDULE (SUB-LIMIT FORM)

This schedule is required when earthquake coverage is provided. OP 10 01–Earthquake–Volcanic Eruption also must be attached.

Related Article: OP 10 01–Earthquake-Volcanic Eruption Endorsement (Sub-limit Form)