October 7, 2013

 Underwriting would like some clarification or an opinion on property of others. The insuring agreement under your business personal property provides coverage for personal property of others that is in the insured's care, custody, or control. The form further states under coverage extensions b., personal effects and property of others, that the most the insurer will pay for loss or damage under this extension is $2,500 at each described premises.

Are we correct in assuming that the insuring agreement provides coverage for personal property of others while in the care, custody, and control of the insured, and the coverage extension limits the amount available to $2,500 per location?

Arizona Subscriber

The coverage extension allows the insured's business personal property coverage to be extended to cover property of others in the insured's care, custody, or control. If the insured needs more coverage than the $2,500 limit provided by the extension, more can be purchased under coverage A.1.c., personal property of others.

So, if for instance, the insured has charge over $10,000 worth of personal property of others in his business, he should purchase an additional $7,500 of coverage (as the coverage extension already provides $2,500) under A.1.c. The form does not automatically cover personal property of others (except what is provided in the extension) unless activated by the appropriate entry on the declarations page.