Materials Held for Sale

January 9, 2013

We are handling a theft claim under a CP 00 10 04 02 and CP 10 30 04 02. The insured is a large commercial roofing contractor with multiple locations across the state. At one of the locations the insured has a warehouse type building where they store materials in preparation for jobs and where they store excess material that was left over from previous jobs. Our claim deals with numerous rolls of roofing material that were being stored on the yard (outside, but in close proximity to the building) that were left over from a recent job. The insured found a broken lock on the front gate and discovered the roofing material was gone. We believe it is clear this is covered property; however, our internal disagreement is on the application of Limitation 1. d. 1.