Commercial Property Coverages (4 hours)
This topic will begin every Commercial Property institute, and the
speaker's presentation will revolve mainly around ISO's Building and
Personal Property Coverage Form (CP 00 10), with emphasis on property
covered and not covered, Additional Coverages and Coverage Extensions.
We will also discuss such issues as schedule v. blanket coverage, valuation
and coinsurance.
Commercial Property Endorsements (2 hours)
This section will survey a number of Commercial Property endorsements
and how they alter coverage. Remember, a typical exam question may offer
a scenario involving an insured with a Building and Personal Property
form with certain limits and a certain Causes of Loss form, then ask
whether particular occurrences would be covered and, if not, how to
address these gaps. One or more of the endorsements discussed in this
section may provide the answer as to how to deal with some coverage
gap.
No individual endorsement will be analyzed in the same detail as the
Building and Personal Property form or the Special Causes of Loss form.
The emphasis will be more on each endorsement's function, and we may
look at a few key features of each.
Commercial Property Causes of Loss Forms (2 hours)
This part of the course will focus mainly on the three ISO Commercial
Property Causes of Loss Forms: The Causes of Loss - Basic Form (CP 10
10), Causes of Loss - Broad Form (CP 10 20) and especially, the Causes
of Loss - Special Form (CP 10 30). Emphasis will be on what's covered
and what's excluded.
Time Element Coverages (4 hours)
This topic is more conceptual and less coverage-specific than the previous
topics. Some time will be spent on the concept of time element or business
income coverage, and we will review a number of forms, but none in the
same detail, as we will the Building and Personal Property or Causes
of Loss forms.
Some of the topics addressed will include: what is meant by "Business
Income"; benefits of business income coverage to the insured; how
to determine the amount of business income coverage needed; coinsurance
implications; optional coverages available; the uses of various business
income forms and endorsements.
A partial list of coverage forms and endorsements likely to be reviewed
include:
- Business Income (and Extra Expense) Coverage form (CP 00 30)
- Business Income (without Extra Expense) Coverage form (CP 00 32)
- Extra Expense Coverage form (CP 00 50)
- Leasehold Interest Coverage form (CP 00 60)
- Business Income from Dependent Properties - Broad form (CP 15 08)
- Business Income from Dependent Property - Limited form (CP 15 09)
- Ordinary Payroll Limitation (CP 15 10)
- Business Income Report/Work Sheet (CP 15 15)
- Business Income Premium Adjustment (CP 15 20)
- Ordinance or Law - Increased Period of Restoration (CP 15 31)
Commercial Inland Marine Coverages (4 hours)
This topic will define what inland marine insurance is and examine
a number of important inland marine concepts as well as sample forms
of various types of inland marine coverage.
We will review a variety of inland marine forms and discuss their specific
uses. Because there will be no standard version of most of these forms,
we cannot recommend a particular version to study. If you can obtain
samples from your companies, it would be helpful to review them, but
you probably would not want to study them to closely as you might the
Building and Personal Property and Causes of Loss forms, because we
will likely be using a different company's version of the inland marine
forms in the class.
The FC&S or PF&M manuals or any introduction to inland marine
text may provide good sources to study for this topic.
Concepts and coverage forms likely to be discussed in this section
include:
- The "Nationwide Marine Definition"
- Controlled v. Uncontrolled Lines of Inland Marine
- Accounts Receivable Coverage
- Valuable Papers and Records Coverage
- Builders Risk Coverage
- Motor Truck Cargo - Owner's Form
- Transportation Floater
- Installation Floater
- Contractors Equipment Floater
Businessowners Policies (BOP) (1 hour)
The emphasis of this topic will be on what most BOPs contain and what
the pitfalls are of using a BOP.
Optional Topics
The remaining three hours of the Commercial Property Institute will
be made up of 2-3 one-hour or two-hour topics. If you check with the
PIIAI a few weeks prior to the class you plan to attend, we can tell
you which optional topics will be included in that particular institute.
Some of the subjects that may be covered include:
- Other Inland Marine (e.g. Bailees coverage, various floaters, Trucker's
Cargo)
- Crime Coverages
- Difference in Conditions (DIC)
- Equipment Breakdown (i.e. Boiler & Machinery)
- Manufacturers Output Policy (MOP)
- EDP Coverages
- Flood
- Highly Protected Risks (HPR)
- Commercial Risk Management
- Case Study - Risk Management