BROCHURE: UNDERSTANDING THE AAIS COMMERCIAL OUTPUT PROGRAM

(August 2019)

Protecting your real and personal property is one of the most important elements in your insurance program. Regardless of the size of your business, a large percentage of your assets and resources are tied directly to your property. The AAIS Commercial Output Program is designed for medium-to-large businesses with significant property exposures and which require coverage flexibility.

Consult the policy for definitions and limitations. The terms of this brochure do not represent contract terms. The policy is subject to company underwriting practices.

COVERAGE

The policy pays for direct physical loss or damage to covered property. The loss must occur in the coverage territory and be due to a covered peril.

WHAT IS COVERED AS BUILDING?

The insurance policy treats a building as more than just a single building. When a limit of insurance is shown on the declarations for building, the following are considered as building:

• Building and structures

• Completed additions
• Fixtures
• Permanently installed machinery and equipment
• Personal property owned by you and used to service or maintain the building or premises
• Buildings and additions under construction but only if not covered by other insurance
• Building glass
• Radio and television towers, antennas, satellite dishes, masts, wiring, guy wires, foundations, awnings, canopies, and fences but only if located within 1,000 feet of a covered building or structure
• Signs
• Foundations of buildings, structures, boilers or machinery

WHAT IS COVERED AS BUSINESS PERSONAL PROPERTY?

The COP treats business personal property as more than just the contents of a building. When a limit of insurance is shown on the declarations for business personal property, the following are all covered but only if situated inside the building or within 1,000 feet of the premises in the open or in a vehicle:

• Business personal property
• If you are a tenant, your use interest in improvements made to the building
• Leased personal property you are contractually responsible to insure
• Your interest, consisting of labor, material and services, in personal property of others
• Computers if not covered elsewhere
• Personal property intended to become a permanent part of any installation, fabrication or erection project
• Mobile equipment if not covered elsewhere
• Personal property of others but only if in your care, custody or control

WHAT PROPERTY IS NOT COVERED?

Certain types of property, such as the items listed below, are not usually eligible for coverage and are excluded. In many cases, coverage is available elsewhere or under a different insurance policy or coverage form:

• Airborne or waterborne personal property
• Aircraft and watercraft that you don’t manufacture or warehouse or hold for sale
• Animals, except held for stock
• Automobiles and vehicles that you don’t manufacture or warehouse
• Computers as checked luggage but only if stolen
• Contraband, or any property involved in illegal transportation or trade
• Costs of excavation
• Crops stored outside buildings
• Exports and imports while covered under an ocean marine policy
• Land, water and growing crops
• Money, securities, accounts and valuable papers
• Outdoor trees, shrubs, plants and lawns
• Any property insured elsewhere
• Property of others if you are a carrier for hire
• Sold property that has been delivered

WHAT ARE THE COVERAGE EXTENSIONS?

• Consequential loss
• Debris removal
• Emergency removal
• Emergency removal expenses
• Fraud and deceit
• Damage from theft
• Off premises utility service interruption

WHAT ARE THE SUPPLEMENTAL COVERAGES?

• Brands or labels expense
• Expediting expenses
• Fire department service charges
• Inventory and appraisal expense
• Ordinance or law (undamaged parts of a building)
• Ordinance or law (increased cost to repair and cost to demolish and clear site)
• Personal effects
• Pollutant cleanup and removal
• Recharge of fire extinguishing equipment
• Rewards
• Sewer backup and water below the surface
• Trees, shrubs and plants
• Underground pipes, pilings, bridges and roadways

WHAT ARE THE SUPPLEMENTAL MARINE COVERAGES?

• Accounts receivable
• Electrical or magnetic disturbance of computers
• Power supply disturbance of computers
• Virus and hacking coverage
• Fine arts
• Off premises computers
• Property at exhibitions
• Property in transit
• Sales representative samples
• Software storage
• Valuable papers

WHAT PERILS ARE COVERED?

Coverage applies to direct physical loss or damage to covered property unless the loss is limited or is caused by an excluded peril.

Note: Refer to the policy for the exclusions and limitations.

ENDORSEMENTS

The AAIS Commercial Output Program has a number of optional coverage parts, schedules, and endorsements that can be included on the policy.

Note to subscriber: Consider attaching the AAIS Commercial Output Program Endorsement Checklist for your customer to review.

Related Article: AAIS Commercial Output Program Endorsements Checklist

REPRINT PERMISSION

PF&M subscribers are permitted to reprint any portion of this brochure for their commercial insurance customers. Other uses require permission by The Rough Notes Company, Inc.