Coverage Checklist
Even when the ISO commercial property form is used, there are many coverage choices that should be considered when designing or reviewing a property program. In addition to the main coverage form, there are numerous endorsements that may be attached to either broaden or restrict coverage. Many individual insurance companies also publish their own coverage forms, which provide even more variation. Areas that should be included in any commercial property coverage review are listed below in this coverage checklist.
Commercial Property Checklist General Information
Named Insured____________________________
D/B/A___________________________________
Address___________________________________
City, State_________________________________
Phone:
Named Insured is a(n): _____Individual _____Partnership _____Corporation ____Limited Liability Corporation_____Joint Venture _____Other
General business operations__________________
States/territories in which insured has operations______________________________
States/territories in which insured might begin operations within next twelve months___________________________________
Loss control contact name/phone____________________________________________
Insurance Company Information
Carrier name ___________________________________________________
Financial (A.M. Best) rating _______________________________________
Premium ______________________________________________________
Number of days for notice of cancellation and nonrenewal _______________
Standard or non-admitted market? __________________________________
Coverage territory _______________________________________________
Coverages
____ 1. Scheduled property coverage?
____ 2. Blanket real property coverage?
____ 3. Blanket business personal property coverage?
____ 4. Blanket real and business personal property coverage?
____ 5. Blanket real, business personal property, and business income coverage?
____ 6. Consider adding EDP, business income, personal property of employees, etc., to blanket real and business personal property coverage?
____ 7. Deductible amount, real property?
____ 8. Deductible amount, business personal property?
____ 9. Deductible amount, blanket real & business personal property?
____ 10. Inflation guard protection?
Coverage—Real Property
____ 1. Valuation—RC or ACV?
____ 2. Agreed value?
____ 3. Coinsurance percentage?
____ 4. Is coinsurance requirement met by limit of coverage?
____ 5. Basic causes of loss?
____ 6. Broad causes of loss?
____ 7. Special causes of loss?
____ 8. Is DIC coverage needed?
____ 9. DIC for what perils?
____ 10. Review definition of real property?
____ 11. Review "property not covered" clauses and provide for separate insurance on any of this type of property that should be insured?
____ 12. Flood limit of coverage?
____ 13. Flood deductible?
____ 14. Surface water/sewer back-up covered?
____ 15. Earthquake and volcanic eruption limit of coverage?
____ 16. Earthquake deductible?
____ 17. Ordinance or law coverage limit? Include loss to undamaged portion of building, demolition cost, increased cost of construction?
____ 18. Off premises power failure, including overhead transmission lines, limit?
____ 19. Number of days automatic coverage for newly acquired real property?
____ 20. Limit on automatic coverage for newly acquired real property?
____ 21. Waiver of subrogation clause included?
____ 22. Review exclusions?
____ 23. If building is leased, is the insured's interest in leasehold improvements accurately insured?
____ 24. Is leasehold interest coverage needed?
Coverage – Business Personal Property
____ 1. Valuation—RC or ACV?
____ 2. Agreed value?
____ 3. Coinsurance percentage?
____ 4. Is coinsurance requirement met?
____ 5. Basic causes of loss?
____ 6. Broad causes of loss?
____ 7. Special causes of loss?
____ 8. How should stock be valued?
____ 9. Is there a need for reporting form on contents or stock?
____ 10. If reporting form is used, has a system been set up to monitor receipt of reports?
____ 11. Peak season adjustment needed?
____ 12. Review definition of business personal property?
____ 13. Review "property not covered" clauses?
____ 14. Flood limit of coverage?
____ 15. Flood deductible?
____ 16. Surface water/sewer back-up covered?
____ 17. Earthquake and volcanic eruption limit of coverage?
____ 18. Earthquake deductible?
____ 19. Off premises power failure, including overhead transmission lines, coverage?
____ 20. Number days automatic coverage for newly acquired business personal property?
____ 21. Limit on automatic coverage for newly acquired business personal property?
____ 22. Waiver of subrogation clause needed?
____ 23. Review exclusions?
Additional Coverage Details
____ 1. Debris removal limit?
____ 2. Preservation of property coverage length of time?
____ 3. Fire department service charge limit?
____ 4. Pollutant cleanup/removal expense limit?
____ 5. Glass coverage needed?
___ 6. Limit of glass coverage needed? Schedule provided?
____ 7. Sign coverage needed?
____ 8. Limit of sign coverage needed?
____ 9. Valuable papers limit?
____ 10. Accounts receivable limit?
____ 11. Boiler and machinery coverage needed?
____ 12. Amount of boiler and machinery coverage needed?
____ 13. Is business income or extra expense coverage needed?
____ 14. Other consequential loss exposures? Spoilage coverage?
____ 15. If business income covered, extend civil authority coverage beyond 14 days?
____ 16. Is business income coverage needed on boiler & machinery?
____ 17. Are all policies covering the same property concurrent?
____ 18. Additional coverage needed for fences, walls, antennas, etc.?
____ 19. Any bailee exposure?
____ 20. Is coverage for "property of others" or "property of employees" needed?
____ 21. Are special theft sublimits adequate for exposures? (Ex.: jewelry, patterns & dies, stamps, etc.)
____ 22. Additional coverage needed for outdoor trees or plants?
____ 23. Review "property subject to limitations" section to be sure coverage is adequate.
Miscellaneous
____ 1. Is highly protected risk status warranted?
____ 2. Has the published fire rate been checked for accuracy?
____ 3. Have values been checked for accuracy?
___ 4. Is current property appraisal on file and used to set limits?
____ 5. Are sprinkler credits current?
____ 6. If more than one policy covers the same property, are all terms and conditions of coverage identical, and does the total coverage amount of all contributing policies equal 100 percent of the property values.
____ 7. Is insured complying with requirements of any protective safeguard endorsements that are attached to the policy?
____ 8. Do the policies reflect all insured interests properly?
____ 9. Are mortgage and loss payee interests listed properly?
____ 10. Is separate crime coverage carried, or is the insured relying on this policy for that coverage?
____ 11. Are possible rating credits or rating plans properly applied?