Form MS SF 01 may be used to insure those facilities where customers rent private space for storing their own property, and use their own locks or keys. These are also sometimes called mini-warehouses. (This is classification 18991 in the commercial lines classification table, and is the only eligible classification.) The business may also engage in other operations requiring an additional classification.

Form MS SF 01 does not add to coverage for building or business personal property, but it does modify 2.a., 2.p. and 2.q. Property Not Covered. Provision 2.a states that covered property does not include accounts, bills, currency, money, and food stamps, MS SF 01 adds "except as provided in the Additional Coverages provisions in this Coverage Form." Provision 2.p. in the CP 00 10 is replaced; in form MS SF 01 it states that grain, hay, straw or other crops outside a building, or property like fences, TV antennas, signs, trees, etc. are not covered except as provided in the additional coverages or coverage extensions. Provision 2.q. in form MS SF 01 states that covered property does not include property belonging to the insured's "customers" (as defined, see Definitions following in the article). However, one of the changes to the CGL form is to provide customers" property legal liability. See following: Changes to the CGL Form.

Two additional coverages of the CP 00 10 are enhanced. Additional coverage 4.a debris removal gives an additional $25,000 if the total of the actual debris removal expense plus the amount paid for the covered loss exceeds the limit of insurance, or if the actual debris removal expense exceeds 25 percent of the sum of the deductible plus the amount paid for a covered loss. The amount of the fire department service charge (4.c.) is increased from $1,000 to $5,000.

Form MS SF 01 includes several new additional coverages. Coverage 4.g. money and securities limits (which may be increased) for any one occurrence are $2,500 for money and securities used in the insured business while on the described premises or at certain other locations. Loss resulting from theft, disappearance, or destruction is covered. All loss caused by one or more persons and involving a single act or series of related acts is considered one occurrence. There is no requirement that the theft be carried out by an outsider, so that an employee's theft of money would be covered. (There is a greater amount of coverage under employee dishonesty [see below], but there is a burden of proving an employee committed the crime under that coverage.)

There is $5,000 coverage for fire extinguisher systems expense (4.h.): the cost of recharging or replacing, whichever is less, fire extinguishers or systems that have been discharged on or within one hundred feet of the described premises, unless the discharge occurs during testing or installation. This coverage may also be used for loss or damage to covered property resulting from accidental discharge of chemicals from a fire extinguisher or system. 

Additional coverage 4.i. is reward payment. This coverage provides up to $5,000 to an "eligible person" for information leading to the arrest and conviction of a person committing a crime resulting in loss to covered property, or to an "eligible person" for the return of stolen covered property or stolen property of the insured's "customers" while the property is at the insured storage facility. The amount paid is the lesser of: a) the actual cash value of the covered property at the time of the loss, but not more than the amount required to repair or replace it; or b) the amount determined by loss settlement conditions.

"Eligible persons" are those not employed in a law enforcement or security capacity, the named insured or a family member, an employee or a member or his or her family, any person having custody of the property at the time the theft was committed, or any person involved with the crime. In order to receive the reward, the eligible person must have been designated by a law enforcement agency as having provided the information leading to arrest or recovery of property.

Additional coverage 4.j. money orders and counterfeit paper currency is limited to $1,500 but this amount may be increased. The coverage responds to acceptance, in good faith, of "counterfeit" (see Definitions, below) paper currency or money orders that are not paid upon presentation. The insured must have accepted the money or money orders in exchange for merchandise, money (as when giving change), or services.

There is an additional coverage (4.k.) for forgery or alteration. This amount is limited to $2,500 unless it is increased. (ISO rules allow an increase to $5,000 or $10,000.) Covered is loss resulting directly from forgery or alteration of checks, drafts, promissory notes, or similar written promises, orders or directions to pay a sum certain (that is, a specified amount) in money. The coverage is designed to protect the insured against anyone forging or altering the insured's checks or drafts. For example, if a person to whom the insured's business check was to be paid changed the amount from $250 to $2500 this coverage would respond. Included within the limit is coverage for reasonable legal expenses arising from a suit against the insured for refusing to pay the forged or altered amount.

Outdoor signs (4.l.) are covered for direct physical loss or damage if the signs are owned by the insured or in the insured's care, custody, or control. For example, it is not uncommon for a business to rent a portable sign. Coverage is on an open perils basis, except that loss caused by wear and tear, hidden or latent defect, rust, corrosion, or mechanical breakdown is not covered. This additional coverage is limited to $2,500, but may be increased.

Additional coverage 4.m. provides coverage for employee dishonesty. Direct loss of or damage to the insured's business personal property, money, or securities, and personal property of the insured's "customers" resulting from dishonest acts of employees (see Definitions, below), acting alone or in collusion with others is covered up to $25,000. The rules allow an increase to $50,000, $75,000 or $100,000 per occurrence. (Contrast the greater amount of coverage available under this form with the landscapers" form [MS LS 01], in which the available increases are $5,000, $7,500 or $10,000 per occurrence.)

As is the case with many crime forms, the dishonest acts must be carried out with the "manifest intent" to cause the insured to sustain loss, and to obtain financial benefit beyond a salary, commission, profit sharing or other regular benefit earned in the course of employment. The financial gain need not necessarily be for the benefit of the employee committing the act; the employee may be stealing for another person or organization.

Certain restrictions apply. There is no coverage for any loss resulting from a dishonest or criminal act committed by the named insured, his or her partners, members, officers, managers, directors, trustees, authorized representatives, or anyone to whom the named insured has entrusted the lost or damaged property. This language conceivably can lead to a situation whereby an employee steals a lawn tractor from the insured business premises and there is coverage, but if that same employee is entrusted to take the tractor to be serviced and steals it, no coverage applies.

There is no coverage if the only proof of the loss is an inventory or a profit and loss computation. All loss or damage caused by one or more employees and involving a single act or a series of related acts is considered to be one occurrence. The policy period is the defining time frame for loss or damage. In other words, the coverage does not accumulate from one policy period to the next, no matter how long the policy remains in force. And, if the named insured discovers that an employee has committed a dishonest act prior to or after being hired, any loss committed after that discovery will not be covered.

The period of discovery for employee dishonesty is one year from the end of the policy period. If the named insured discovers a loss or damage during the current policy period that was sustained during a period of prior insurance, and that could have been recovered except that the discovery period had expired, the MS SF 01 will pay the loss so long as certain conditions exist. These conditions are that the additional coverage on this policy became effective when the other insurance ended, and the loss or damage would have been covered on this policy had it been in effect when the loss or damage occurred. That is, a loss not covered by the policy—a theft committed by a partner, perhaps—will still not be covered during the one-year period. Coverage for this period is included within the $25,000 (or greater) limit; it is not an additional amount of insurance.

Additional coverage n. artificially generated electrical current applies to computers damaged by artificially generated electrical current. The loss or damage must have been caused by or resulted from an occurrence within one thousand feet of the described premises (a vehicle striking a utility pole, for example), or by an interruption of electric power, power surge, blackout, or brownout if the cause of this occurrence takes place within one thousand feet of the described premises.

Form MS SF 01 modifies many of the coverage extensions of the CP 00 10. The first of these is for newly acquired or constructed property (5.a.). The coverage extension modifies the coverage period provision for newly acquired or constructed property. Coverage ends when any of these first occurs: the policy expires; thirty days expire after the named insured acquires the property or begins construction of that part of the building that would qualify as covered property; with regard to computers, when specific insurance at the newly acquired premises is obtained; or, finally, when the named insured reports values to the insurer. The insurer has the right to charge premium for the values reported from the date the property is acquired or construction begins of the part of the building that would qualify as covered property.

The coverage extension for personal effects and property of others (5.b.) is amended. The amount of coverage in the CP 00 10 is $2,500; the MS SF 01 changes it to $5,000, which may be increased up to $10,000. The coverage applies to personal property of others in the named insured's care, custody, or control, and to personal effects owned by the named insured, officers, partners or members, managers or employees. As is common with many of the coverages, this extension does not provide coverage for "customers"" property. (Customers" property legal liability is described below; see Changes to the CGL Form.) Payment is only for the account of the owner of the lost or damaged property.

Coverage extension 5.c. for valuable papers and records (other than electronic data) allows the named insured to extend the coverage applicable to business personal property to apply to direct physical loss or damage to valuable papers and records that are owned by or in the care, custody, or control of, the named insured. This is different from the CP 00 10, which simply covers the cost to replace or restore lost information. Included is the cost to research lost information on the valuable papers for which duplicates do not exist. Not included within this extension is coverage for papers and records that exist as electronic data or coverage for valuable papers stored at the facility by "customers." Loss must be the result of one of the "specified causes of loss" or collapse as set forth in the CP 10 30.

The amount the insurer will pay is limited to $10,000 in any one occurrence at the described premises (this amount may be increased to $250,000), or $5,000 for a loss not at the described premises. This amount is additional insurance. Although the insurer will pay the cost of blank material for reproducing the records, and the cost of labor to transcribe the records, these costs are subject to the limit of insurance on business personal property. Therefore, these costs are not additional insurance.

The extension for property off-premises (5.d.) is modified to include coverage for computers while they are in the course of transit. Other covered property, while temporarily located at a premises the named insured does not own, lease, or operate, in storage at a leased facility, or at any fair, trade show or exhibition is covered. This coverage is limited to $10,000 in any one occurrence.

The extension does not apply to property in or on a vehicle (except for computers) or in the care, custody or control of salespersons unless the property is at a fair, trade show or exhibition.

The modifications to coverage extension 5.d. outdoor property reflect the fact that a storage facility premises might include items to be insured that generally are not contemplated in the CP 00 10. For example, many self-storage premises are surrounded by security fencing. Thus, fences and retaining walls not part of a building are covered for up to $10,000 in any one occurrence. (The CP 00 10 covers fences for $1,000.) Outdoor radio, television, satellite or other antennas are covered up to $3,000 (increased from $1,000 in the CP 00 10) in any one occurrence. Trees, shrubs, and plants other than stock are covered up to $2,500 (increased from $1,000 in the CP 00 10), but for no more than $500 for any one tree, shrub, or plant.

Loss or damage must have been caused by or result from these covered causes of loss: fire, lightning, explosion, riot or civil commotion, or aircraft.

The final coverage extension is 5.g. accounts receivable. The amount the insurer will pay for any one occurrence is limited to $5,000 at each described premises and $1,500 for accounts receivable not at the described premises.

The MS SF 01 adds, deletes, or changes many of the exclusions and limitations of the CP 10 30 causes of loss—special form. Because the MS SF 01 gives coverage for employee dishonesty, outdoor signs, valuable papers and records, and accounts receivable, many of the changes impact those coverages.

The first modification is to the exclusion B.2.d.(6) for mechanical breakdown, including rupture or bursting caused by centrifugal force. MS SF 01 states that the exclusion does not apply if the mechanical breakdown results in elevator collision. The exclusion does not apply to the coverage for artificially generated electrical current (additional coverage 5.n.).

Exclusions B.2.d.(7)(a) and (7)(b) of the CP 10 30, for loss to personal property caused by dampness or dryness of atmosphere or changes in or extremes of temperature, are combined into exclusion B.2.d.(7)(a) in MS SF 01. There is coverage if these conditions result from physical damage caused by a covered cause of loss to an air conditioning unit or system, including equipment and parts, which is part of or used with computers. Exclusion B.2.d.(7)(c) in CP 10 30, for marring or scratching, becomes exclusion B.2.d.(7)(b) in MS SF 01. But, if an excluded cause of loss in exclusions B.2.d.(1), (2), (6) or (7) results in a "specified cause of loss" or building glass breakage, the insurer will pay for the loss or damage caused by the specified cause of loss or the building glass breakage.

Form MS SF 01 adds four exclusions to paragraph B.1. that pertain only to coverage for computers. The first of these is B.1.i., errors or omissions. Loss or damage caused by errors or omissions in processing, recording or storing electronic data on computers is excluded; however, the insurer will pay for direct loss or damage caused by resulting fire or explosion if these causes of loss would be covered by form MS SF 01.

Exclusion B.1.j. is for electrical disturbance which causes magnetic injury, disturbance, or erasure of electronic recordings. The exception is that direct loss or damage caused by lightning is covered.

Computer-related losses, exclusion B.1.k., declares that there is no coverage for loss—failure, malfunction, or inadequacy—arising from computer inability to recognize, accept, or distinguish one or more dates or times. This applies to: hardware, software, operating systems, networks, microprocessors, or any other computerized or electronic equipment or components, whether owned by any insured or another person or organization. Further, there is no coverage for failure or inadequacy or any other products, services, data or functions that use any of the listed items.

Finally, exclusion B.1.l. states that any computer advice or consultation provided by or done by or for the named insured to rectify or test for any problems described in exclusion B.1.k. is not covered.

However, if an excluded cause of loss as described in exclusions B.1.j., k., or l. (above) results in a "specified caused of loss" (as defined in the CP 10 30) or an elevator collision resulting from mechanical breakdown, the insurer will pay for the loss or damage caused by these. This does not include payment for repair, replacement or modification of any items in exclusion B.1.k. to correct any deficiencies.

The section B. exclusions of CP 10 30 do not apply to the coverage for employee dishonesty (4.m.). The only section B. exclusions that apply to the coverage for outdoor signs (4.l.) are those for governmental action, nuclear hazard, war and military action, or wear and tear, rust or corrosion, or mechanical breakdown. The coverages for valuable papers and records (extension 5.c.) and accounts receivable (5.g.) also are excepted from the section B. exclusions, except for governmental action, nuclear hazard, war and military action, computer-related losses, computer advice, continuous seepage or the presence of moisture over fourteen days or more, water resulting from freezing, and the section B.3. exclusions (weather conditions, acts or decisions, and faulty maintenance or design).

Form MS SF 01 contains an additional exclusion applicable to the accounts receivable coverage extension. Loss or damage resulting from bookkeeping, accounting or billing errors or omissions is not covered. Loss or damage caused by or resulting from alteration or falsification or destruction of documents or records in order to conceal wrongful giving, taking or withholding of money, securities, or other property is not covered, but only to the extent of the wrongful giving, taking or withholding. Finally, any loss or damage that requires an audit of records or an inventory computation to prove its existence is not covered.

To the three insuring agreements of the CGL form—coverage A bodily injury and property damage liability, coverage B personal and advertising injury liability, and coverage C medical payments—is added a fourth. This is coverage D customers' property legal liability.

The insurer promises to pay sums the insured is legally obligated to pay as damages because of property damage to a "customer's" property, or the property of others for which the customer is liable. Note that the insured must be legally liable for the damages. This is not a "good will" coverage that reimburses customers for losses for which the insured cannot be held responsible. The coverage applies only while the property is at the insured's self-storage facility. The insurer has the right and duty to defend; however, the insurer has no duty to defend against a suit seeking damages to which the insurance does not apply. The limit for coverage D is $100,000, which can be increased according to company rules and rates. A $250 deductible applies.

Form MS SF 01 adds exclusions to the CGL that apply to the coverage for customers' property legal liability. First, there is no coverage for property damage to any land motor vehicle, trailer, or semi-trailer that a customer has stored at the insured premises. (But see the coverage for loss or damage to customers' autos under Endorsements to the MS SF 01 following.) Second, there is no contractual liability coverage, but this exclusion does not apply to damages the insured would have had in the absence of any contract or agreement. Third, intentional property damage or dishonest or criminal acts committed by the insured, the insured's employees, or anyone to whom the insured has entrusted the property are not covered. Finally, there is no coverage for liability arising out of the insured's "sale and disposal operations." (This is a separate coverage; see following under Endorsements to the MS SF 01.)

Coverage E, sale and disposal liability, is the fifth of the liability coverages of form MS SF 01. It provides liability for an act or omission arising from the "lock-out" (as defined; see below) or the sale or disposal of a customer's property. A "sale and disposal" occurs when the insured sells a customer's property to recoup unpaid storage fees; when the storage facility owner is entitled to do this depends upon the law in a given jurisdiction (see later discussion under Definitions). The insurer has the right and duty to defend against a suit seeking damages. The right and duty to defend ends when the applicable limit of insurance has been used up in the payment of judgments or settlements. The limit of insurance is $5,000, which is an annual aggregate.

There are two exclusions to this coverage: 1) damages the insured is obligated to pay because of assumption of liability in a contract are not covered; this does not apply to liability the insured would have had in the absence of a contract; and 2) liability arising out of dishonest or criminal acts of the insured or an employee or any other person entrusted with the property is not covered.

There are ten definitions listed on form MS SF 01. Remember, these are in addition to those contained on forms CP 00 10, CP 10 30, and the CGL form; they do not replace them.

The first is computer. A computer is the named insured's "programmable electronic equipment used to store, retrieve and process electronic data. It includes component parts and dedicated air conditioning, fire suppression equipment and electrical equipment used exclusively in [the named insured's] "computer" operations; and associated peripheral equipment that provides communication, including input and output functions such as printing or auxiliary functions such as electronic data transmission." Electronic data and media are not included in this definition.

Counterfeit means "any imitation of a valid and actual original that is intended to deceive or be mistaken for the original."

A customer is "any person or organization which is renting, leasing or otherwise occupying space at [the named insured's] self-storage facility."

The definition of employee is changed only with regard to coverage provided under the additional coverages for money and securities and employee dishonesty. An employee is any real person while in the service of the named insured (and for thirty days after termination of service), who is compensated through salary, wages, or commission, and directed and controlled by the named insured in the course of work for the named insured. The definition also includes any real person furnished temporarily to the named insured to substitute for a permanent employee or to meet seasonal or short term work load demands, so long as the person is subject to the named insured's direction.

Excluded from this definition are agents, brokers, leased employees, or managers, directors or trustees except while performing acts within the usual scope of an employee's duties.

Forgery means signing the name of another person or organization with intent to deceive. It does not mean signing one's own name whether in whole or in part, with or without authority, for any purpose.

A lock-out means that a "customer" is denied access to either his or her own property or to the space he or she is renting, leasing, or otherwise occupying.

A manager is a person serving in a directorial capacity for a limited liability company. This definition applies only to the coverage for employee dishonesty.

Money means currency, coins and bank notes in current use and having a face value. The definition includes travelers checks, register checks and money orders held for sale to the public.

Sale and disposal operations are activities conducted by the named insured to reclaim rented storage space when customers" accounts have become delinquent or are unpaid. Generally, this means that the self-storage owner has the right to dispose of property after proper notification to the customer. The length of time for nonpayment and the notification are subject to law. For example, in Ohio the self-storage owner must notify all persons known to have an interest in the property, giving the sum due, the date when payment was due, a description of the stored property (property in a locked or otherwise inaccessible container need not be described, although the container must be). The notice must make demand for payment not less than ten days after delivery of the notice, and include a statement that unless payment is not made the property will be advertised and sold at auction, adding that if the property is not purchased, the facility owner has the right to destroy it. Then, if payment is still not forthcoming, the owner must advertise the sale once a week for two consecutive weeks in a "newspaper of general circulation in the county in which the self-service storage facility is located." At this point, the advertisement must include a description of the personal property in the here-to-fore unopened containers. There is considerably more, but note that the entire process is tightly regulated, both for the storage space renter and the facility owner, who can be liable for damages if he or she fails to comply with Ohio Revised Code 5322.03.

Securities means negotiable and nonnegotiable instruments or contracts representing money or other property. Included as well are redeemed coupons, tokens, tickets, revenue and other stamps (either actual stamps or unused value in a postage meter) in current use. Evidences of debt issued in connection with credit cards are securities, so long as the named insured has not issued the cards. Securities does not include money.

Mechanical breakdown coverage is available by attaching MS SF 02 self-storage facilities—mechanical breakdown coverage. The endorsement may be used instead of a boiler and machinery coverage form. (For information on ISO's boiler and machinery coverage form, BM 00 20 07 01, see Boiler and Machinery Coverage Form). The limit of insurance is the limit of insurance for the building; if the policy does not cover a building, then the limit for business personal property is used. If the insurer permits, coverage may be increased. The endorsement deletes the exclusions on the causes of loss—special form for mechanical breakdown, including rupture or bursting causes by centrifugal force, and for explosions of steam boilers, pipes, engines, or turbines. These are exclusions B.2.d.(6) and B.2.e.

Coverage under MS SF 02 is for direct damage to covered property caused by an accident to an object (a defined term; see below). The object must be owned by the named insured, or in the care, custody, or control of the named insured, and it must be at the described premises.

An accident means a sudden and accidental breakdown of the object or a part of the object. At the time the breakdown occurs, it must manifest itself by physical damage to the object that necessitates repair or replacement. None of the following is considered to be an accident: depletion, deterioration, corrosion, or erosion; wear and tear; leakage at any valve, fitting, shaft seal, joint, or connection; breakdown of any vacuum tube, gas tube or brush; breakdown of any electronic computer or electronic data processing equipment; breakdown of any structure or foundation supporting the object; the functioning of any safety or protective device; or the explosion of gases or fuel within the furnace of any object, or within the flues or passages through which the gases from combustion pass.

An object means any of the following: boilers and pressure vessels consisting of steam heating boilers and expansion tanks used with them, hot water supply boilers, fired or unfired vessels used for maintenance or service of the described premises (but not if they are used for processing or manufacturing), and feed water piping between steam boilers and feed pumps or injectors. An object also means: steam boiler piping, valves, fittings, traps and separators, but only if they are on the named insured's premises or between parts of the premises, contain steam or condensate of steam, and are not a part of any other vessel or apparatus.

There are some exclusions that apply to this coverage. MS SF 02 will not pay for an accident to any object while it is being tested. MS SF 02 will not pay for damage caused directly or indirectly by the failure, malfunction, or inadequacy of any computer hardware and its application or operating software, networks, and systems due to the inability to correctly recognize, process, or accept one or more dates or times. There is no coverage for any advice, inspection, repair, replacement or supervision provided or done by the named insured to correct any of the above described problems. But if damage excluded results in an accident to an object, that damage is covered. The endorsement does not cover repair, replacement, or modification of any computer or its parts or systems to correct any deficiencies or change any features.

Whenever an object is found to be in, or exposed to, a dangerous condition, any of the insurer's representatives may immediately suspend the insurance against loss offered by this endorsement.

The self-storage facility insured may purchase coverage on a legal liability basis for customers' autos by attaching MS 03 04. It is not uncommon for customers to rent a space to store an auto. By attaching MS SF 03 04 self-storage facilities—loss or damage to customers" autos (legal liability coverage) the insurance responds to direct physical loss of or damage to customers" autos and auto equipment while the auto is on the insured premises. An auto when used in this endorsement means a land motor vehicle, trailer, or semi-trailer. Loss must be caused by or result from a covered cause of loss—that is, one not specifically excluded. Loss by theft or conversion caused in any way by an insured is not covered (for example, the self-storage facility owner mistakenly allows someone to make off with a customer's auto without first checking identification). Coverage is subject to a $250 deductible for each auto for loss caused by theft, mischief or vandalism, subject to a $500 deductible for all loss in any one event. Loss caused by collision is subject to a $500 deductible for each customer's auto. Optional deductibles are available.

Finally, the self-storage owner may purchase either or both hired auto and non-owned auto liability insurance by attaching form MS SF 04. Bodily injury or property damage arising out of the maintenance or use of a hired auto (see below) or a nonowned auto (see below) by the named insured or an employee in the course of the insured's business is covered. The base limit is $300,000 on a "per occurrence" basis, and so the limit is not subject to the CGL aggregate limit. However, this coverage is excess over any primary insurance covering the hired or the nonowned auto.

Three definitions are added: 1) ""auto business" means the business or occupation of selling, repairing, servicing, storing or parking "autos" ["auto" retains the meaning in the CGL form]; 2) "hired auto" means any "auto" you lease, hire, rent or borrow. This does not include any "auto" you lease, hire, rent or borrow from any of your "employees", your partners or your "executive officers", or members of their households; and 3) "non-owned auto" means any "auto" you do not own, lease, hire, rent or borrow which is used in connection with your business. This includes "autos" owned by your "employees", your partners or your "executive officers", or members of their households, but only while used in your business or your personal affairs."

The CGL exclusions for bodily injury and property damage relating to contractual liability, liquor liability, employer's liability, aircraft, auto or watercraft, mobile equipment, damage to property, damage to the named insured's products, damage to the named insured's work, damage to impaired property, and product recall are all deleted. Form MS SF 04 adds three exclusions that specify that the coverage does not apply to: bodily injury or property damage arising out of the assumption of liability; bodily injury to an employee of the insured arising out of and in the course of employment by the insured; and property damage to property owned by, transported by, or in the care, custody, or control of the insured.

A supplemental schedule, MS SF DS, indicates any increased limits selected by the insured. Where the insurer permits increased limits but the rules do not indicate, as is the case with mechanical breakdown, hired auto and nonowned auto liability, and loss or damage to customers" autos, the schedule permits a higher entry.