Coverage Extension and Care, Custody, and Control Coverage

July 13, 2011

On commercial form CP 00 10, business personal property includes property of others in the care, custody, and control of the insured. The coverage extensions section provides for business effects and personal property of others with a limitation of $2,500. The coverage extension applies only if there is a coinsurance percentage of 80 percent or more or a value reporting symbol.

If an insured has care, custody, and control of property of others, is it subject to the $2,500 limit or is it subject to the limit applicable to the business personal property? 

 

Wyoming Subscriber

The personal property of others in the insured's care, custody, and control under A.1.c. is not subject to the $2,500 limit in the coverage extension for business effects and personal property of others. A.1.c. is subject to the limit in the declarations selected for that type of property. The coverage extension provides a limited amount of coverage for the property of others described whether or not the insured carries coverage under A.1.c.