Includes copyrighted material of Insurance Services Office, Inc., with its permission.
May 31, 2010
ISO Commercial Inland Marine Program
Summary: Generally, retailers can cover stocks of inventory through use of the commercial property form. However, by using the commercial inland marine program, merchants dealing principally in camera and musical instrument equipment can arrange more specific, open perils coverage. The form used is the Camera and Musical Instrument Dealers Coverage form, CM 00 21 03 10. The coverage may be written on a nonreporting or a reporting basis, and the coverage is for property while at the premises of the insured or in transit. Dealers engaged primarily in manufacturing operations may not be insured under this form.
Like other coverage forms in the Insurance Services Office (ISO) commercial inland marine program, the form is combined with a declarations page, a common policy conditions form, and an inland marine general conditions form to make a policy.
This article discusses the coverage agreement, exclusions, and conditions of the current edition (March 2010) of form CM 00 21. There have been minor changes between the 2008 form and the 2010 form; these will be highlighted.
Coverage
We will pay for direct physical loss of or damage to Covered Property from any of the Covered Causes of Loss.
1.Covered Property, as used in this Coverage Form, means:
a.Your stock in trade consisting principally of cameras or musical instruments and related equipment and accessories; and
b.Similar property of others that is in your care, custody or control.
Analysis
This form covers the named insured's stock in trade and similar property of others in the insured's care, custody, or control. Such property consists, principally, of cameras or musical instruments and related equipment and accessories. This definition is broad enough to include miscellaneous items that a merchant may carry for the accommodation of customers, for example camera bags, film, and accessories.
The definition is also broad enough to provide coverage for property in stock or for sale in mixed operations where the inventory maintained is primarily camera or musical instrument equipment, but other goods are also offered for sale. For example, a camera equipment retailer whose inventory is 75 percent camera equipment but also sells televisions or video recordings could use this form to insure all of the stock. Remember, as long as the property consists principally of cameras or musical equipments, there is also coverage for other stock in trade. The value of such miscellaneous stock must, of course, be included in determining the amount of insurance required.
A stipulation in the commercial lines manual rules provides that when written for a camera or musical instrument department of a department or discount store, coverage under CM 00 21 does not apply to stock that is not usual to the insured department and the policy must be amended to reflect this. Thus, stock from another department that is temporarily on display in the camera or musical instrument department is not covered under this form.
2.Property Not Covered
Covered Property does not include:
a.Property that has been sold and delivered to customers, including property sold under a deferred payment sales agreement;
b.Accounts, bills, currency, deeds, evidences of debt, money, notes or securities;
c.Furniture, fixtures, office supplies, improvements and betterments, machinery, tools, fittings, patterns, dies, molds, and models;
d.Property while in the mail unless Registered Mail or Government Insured Mail; or
e.Contraband, or property in the course of illegal transportation or trade.
Analysis
An important thing to notice here is paragraph a. Property that has been sold and delivered to customers does not meet the definition of property; property that has been sold but not yet delivered to customers is considered covered property. On the other hand, if the insured has sold an item but is holding the item under a deferred payment plan, for example, a layaway plan, that item is not covered property.
Paragraph d. is also an item of note. Property while in the mail is not covered property unless the insured sends it via registered mail or government insured mail. So, if the insured mails a camera to a customer using UPS, for example, that camera is not covered property under CM 00 21.
3.Covered Causes Of Loss
Covered Causes of Loss means Direct Physical Loss Or Damage to Covered Property except those causes of loss listed in the Exclusions.
Analysis
This just means that CM 00 21 is an open perils coverage form, with coverage limited by the listed exclusions. The prior form stated that a covered cause of loss was risk of direct physical loss or damage; the policy now states that direct physical loss or damage is covered, not just the risk of such damage.
4.Additional Coverage – Collapse
The coverage provided under this Additional Coverage – Collapse applies only to an abrupt collapse as described and limited in Paragraphs a. through c.
a.For the purpose of this Additional Coverage – Collapse, abrupt collapse means an abrupt falling down or caving in of a building or any part of a building with the result that the building or part of the building cannot be occupied for its intended purpose.
b.We will pay for direct physical loss or damage to Covered Property, caused by abrupt collapse of a building or any part of a building that contains Covered Property insured under this coverage form, if such collapse is caused by one or more of the following:
(1)Building decay that is hidden from view, unless the presence of such decay is known to an insured prior to collapse;
(2)Insect or vermin damage that is hidden from view, unless the presence of such damage is known to an insured prior to collapse;
(3)Use of defective material or methods in construction, remodeling or renovation if the abrupt collapse occurs during the course of the construction, remodeling or renovation.
(4)Use of defective material or methods in construction, remodeling or renovation if the abrupt collapse occurs after the construction, remodeling or renovation is complete, but only if the collapse is caused in part by:
(a)A cause of loss listed in Paragraph (1) or (2);
(b)One or more of the following causes of loss: Fire; lightning; windstorm; hail; explosion; smoke; aircraft; vehicles; riot; civil commotion; vandalism; leakage from fire extinguishing equipment; sinkhole collapse; volcanic action; breakage of building glass; falling objects; weight of snow, ice or sleet; water damage; all only as insured against in this coverage form;
(c)Weight of people or personal property; or
(d)Weight of rain that collects on a roof.
c.This Additional Coverage – Collapse will not increase the Limits of Insurance provided in this coverage form.
Analysis
The additional coverage clause for collapse was substantially revised in 2010. The form provides coverage for direct physical loss or damage to covered buildings or any part of a building that contains covered property caused by an abrupt collapse as described. The prior policy did not specify that the collapse must be abrupt. Abrupt collapse is then defined as an abrupt falling down or caving in of a building or any part of a building with the result that the building cannot be used for its intended purpose.
The perils of decay or insect or vermin damage hidden from view and unknown by the insured, and use of defective materials or methods in construction or remodeling as long as the collapse occurs during the course of the construction or remodeling remain the same.
The perils of fire, lightning, windstorm, hail, explosion, smoke, aircraft, vehicles, riot, civil commotion, vandalism, leakage from fire extinguishing equipment, sinkhole collapse, volcanic action, breakage of building glass, falling objects, weight of snow, ice or sleet, water damage, earthquake, weight of people or personal property or weight of rain collecting on a roof now apply only if defective materials were used in construction and the building collapsed after construction was finished and if the collapse was in part caused by one of the listed perils. This significantly narrows the covered perils for collapse if the collapse does not occur after the course of construction with defective materials.
5.Coverage Extension
Theft damage to buildings
(a)We will pay for damage caused directly by theft or attempted theft to:
(1)That part of any building containing Covered Property; or
(2)Equipment within the building used to maintain or service the building; only if you own the building or are legally responsible for the damage.
(b)But, we will not pay for damage:
(1)Caused by fire; or
(2)To glass or to lettering or art work on glass.
This Coverage Extension is included within the Limit of Insurance applicable to the Covered Property at the premises where the damage occurs.
Analysis
This coverage extension offers the insured some coverage for real property under a form that deals with what is legally deemed personal property. If a thief damages the insured's building while stealing some cameras or musical instruments, CM 00 21 will pay for that damage. Such coverage is quite limited by the provisions of this clause and is included within the limits of insurance stated on the declarations page, but the coverage extension is a plus for insureds to consider.
1.We will not pay for loss or damage caused directly or indirectly by any of the following. Such loss or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence to the loss.
a.Earthquake
But if earthquake results in fire, we will pay for the direct loss or damage caused by that fire if the fire would be covered under this Coverage Form.
This exclusion only applies to property at your premises.
b.Governmental Action
Seizure or destruction of property by order of governmental authority.
But we will pay for loss or damage caused by or resulting from acts of destruction ordered by governmental authority and taken at the time of a fire to prevent its spread if the fire would be covered under this Coverage Form.
c.Nuclear Hazard
Nuclear reaction or radiation, or radioactive contamination, however caused.
But if nuclear reaction or radiation, or radioactive contamination results in fire, we will pay for the direct loss or damage caused by that fire if the fire would be covered under this coverage form.
d.War And Military Action
(1)War, including undeclared or civil war;
(2)Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any government, sovereign or other authority using military personnel or other agents; or
(3)Insurrection, rebellion, revolution, usurped power or action taken by governmental authority in hindering or defending against any of these.
e.Water
(1)Flood, surface water, waves, (including tidal wave and tsunami) tides, tidal water, overflow of any body of water, or spray from any of these, all whether or not driven by wind (including storm surge); or
(2)Waterborne material carried or otherwise moved by any of the water referred to in Paragraph (1).
This exclusion applies regardless of whether any of the above, in Paragraphs (1) and (2), is caused by an act of nature or is otherwise caused. An example of a situation to which this exclusion applies is the situation where a dam, levee, seawall or other boundary or containment system fails in whole or in part, for any reason, to contain the water.
But if any of the above, in Paragraphs (1) and (2), results in fire, explosion or theft, we will pay for the direct loss or damage caused by that fire, explosion or theft if these causes of loss would be covered under this Coverage Form.
This exclusion only applies to property at your premises.
Exclusions B.1.a. through B.1.e. apply whether or not the loss event results in widespread damage or affects a substantial area.
Analysis
The interesting thing about these exclusions is that loss caused by resulting fire would not be excluded. Not covering damage caused by earthquake or nuclear weapons or flood is not out of the ordinary under property coverage forms, so the coverage extended for resulting fire damage is a point to note for insureds. The nuclear hazard exclusion has been changed and no longer references nuclear weapons; nuclear reaction, radiation, or radioactive contamination include the results of a discharge of a nuclear weapon.
Note also that the earthquake and water exclusions apply only to property at the named insured's premises. Covered property in transit or away from the premises (in the custody of an employee for example) is covered for earthquake or flood damage. The earthquake and flood exclusions may be deleted as an option for the insured if the insurer accedes.
The water exclusion includes tsunamis and storm surge. Waterborne material is also excluded; this is material that is moved along such as lumber, debris, or anything the water can move. The water listed in the exclusion – tsunami, tides, flood, etc, must move the debris. It is not important whether or not nature or man causes the water, for example a hurricane or severe rains, or the failure of a manmade structure such as a seawall, levee, or other containment structure. These changes were added to many policies after the many suits that resulted from Hurricane Katrina.
2.We will not pay for loss or damage caused by or resulting from any of the following:
a.Theft from any unattended vehicle unless at the time of theft its windows, doors and compartments were closed and locked and there are visible signs that the theft was the result of forced entry.
But this exclusion does not apply to property in the custody of a carrier for hire.
b.Marring, scratching; exposure to light; breakage of tubes, bulbs, lamps or articles made largely of glass (except lenses).
But we will pay for such loss or damage caused directly by fire, lightning, explosion, windstorm, vandalism, aircraft, rioters, strikers, theft or attempted theft, or by accident to the vehicle carrying the property if these causes of loss would be covered under this Coverage Form.
c.Delay, loss of use, loss of market or any other consequential loss.
d.Unexplained disappearance.
e.Shortage found upon taking inventory.
f.Dishonest or criminal act committed by:
(1)You, any of your partners, employees, directors, trustees, or authorized representatives;
(2)A manager or a member if you are a limited liability company;
(3)Anyone else with an interest in the property, or their employees or authorized representatives; or
(4)Anyone else to whom the property is entrusted for any purpose. This exclusion applies whether or not such persons are acting alone or in collusion with other persons or such acts occur during the hours of employment.
This exclusion does not apply to Covered Property that is entrusted to others who are carriers for hire or to acts of destruction by your employees. But theft by employees is not covered.
g.Processing or work upon the property. But, if processing or work upon the property results in fire or explosion, we will pay for direct loss or damage caused by that fire or explosion if the fire or explosion would be covered under this Coverage Form.
h.Artificially generated electrical, magnetic or electromagnetic energy that damages, disturbs, disrupts or otherwise interferes with any:
(1)Electrical or electronic wire, device, appliance, system or network; or
(2)Device, appliance, system or network utilizing cellular or satellite technology;
creating a short circuit or other electric disturbance within an article covered under this coverage form.
For the purpose of this exclusion, electrical, magnetic or electromagnetic energy includes, but is not limited to, electrical current, including arcing; electrical charge produced or conducted by a magnetic or electromagnetic field; pulse of electromagnetic energy; electromagnetic waves or microwaves.
But if artificially generated electrical, magnetic or electromagnetic energy, as described above, results in fire or explosion, we will pay for the direct loss or damage caused by that fire or explosion if the fire or explosion would be covered under this coverage form.
This exclusion only applies to loss or damage to that article in which the disturbance occurs.
i.Voluntary parting with any property by you or anyone entrusted with the property if induced to do so by any fraudulent scheme, trick, device or false pretense.
j.Unauthorized instructions to transfer property to any person or to any place.
k.Neglect of an insured to use all reasonable means to save and preserve property from further damage at and after the time of loss.
Analysis
These exclusions are common to inland marine forms and are fairly self-explanatory. The insured should note that exclusion a. requires visible signs of forced entry into a vehicle in order for the exclusion not to apply. If the insurer is going to pay for a theft loss from an unattended vehicle, it must have proof that a theft actually occurred and a visible sign of forced entry is one way to show that proof.
The coverage under CM 00 21 is for direct physical loss. Exclusion c.(loss of use, loss of market, consequential loss) reinforces that point.
Exclusion g. applies to processing or work upon the property. The thinking here is that if the insured is in the business of buying and selling cameras and musical instruments, that insured ought to be skilled in, or at least know enough about, repairing or otherwise working upon such items so that damage does not occur with that work. This is simply requiring the insured to be a good enough business person to know what he or she is doing when it comes to the operations of the business he or she has chosen.
Exclusion h. has been broadened and no longer excludes only electrical current that causes a short circuit or disturbance within a covered article. It now excludes electrical, magnetic, or electromagnetic energy that damages, disrupts, or otherwise interferes with electrical appliances, wires, systems, networks, systems using cellular technology, or creates a short circuit or other electrical disturbance in a covered article. For example, if a short circuit or other electric disturbance in a camera accessory occurs and damages not only that accessory, but also the camera itself and perhaps some musical instruments, damage to the accessory only will not be covered under CM 00 21.
The exclusion then states that electrical, magnetic, or electromagnetic energy includes but is not limited to electrical current, arching, charge produced by a magnetic or electromagnetic field, pulse of electromagnetic energy or microwaves. However, as with other exclusions, if the electrical energy results in fire or explosion, the damage from that fire or explosion is covered.
Exclusions i. and j. are the "trick or device" exclusions. They emphasize that the policy does not cover property that the insured voluntarily parts with regardless of the reason.
Exclusion k. reinforces the insured's responsibility to protect the covered property from further damage once a covered loss has occurred.
3.We will not pay for loss or damage caused by or resulting from any of the following. But if loss or damage by a Covered Cause of Loss results, we will pay for the loss or damage caused by that Covered Cause of Loss.
a.Weather conditions. But this exclusion only applies if weather conditions contribute in any way with a cause or event excluded in Paragraph 1. above to produce the loss or damage.
b.Acts or decisions, including the failure to act or decide, of any person, group, organization or governmental body.
c.Faulty, inadequate or defective:
(1)Planning, zoning, development, surveying, siting;
(2)Design, specifications, workmanship, repair, construction, renovation, remodeling, grading, compaction;
(3)Materials used in repair, construction, renovation or remodeling; or
(4)Maintenance;
Of part or all of any property wherever located.
d.Collapse, including any of the following conditions of property or any part of the property:
(1)An abrupt falling down or caving in;
(2)Loss of structural integrity, including separation of parts of the property or property in danger of falling down or caving in; or
(3)Any cracking, bulging, sagging, bending, leaning, settling, shrinking or expansion as such condition relates to Paragraph (1) or (2).
This Exclusion, d., does not apply to the extent that coverage is provided under the Additional Coverage – Collapse or to collapse caused by one or more of the following: Fire; lightning; windstorm; hail; explosion; smoke; aircraft; vehicles; riot; civil commotion; vandalism; leakage from fire extinguishing equipment; sinkhole collapse; volcanic action; breakage of building glass; falling objects; weight of snow, ice or sleet; water damage; weight of people or personal property; weight of rain that collects on a roof.
e.Wear and tear, any quality in the property that causes it to damage or destroy itself, hidden or latent defect, gradual deterioration, depreciation; mechanical breakdown; insects, vermin, rodents; corrosion, rust, dampness, cold or heat.
Analysis
The exclusions under number 3. can be confusing and should be carefully scrutinized by both the insurer and the insured before being applied to deny a claim. The key point to remember is that if a loss is caused by one of the listed items in this clause, then the exclusion applies. If one of the listed items causes another peril that is considered a covered cause of loss, then the exclusion is not applicable. As an example, a loss caused by a rat gnawing into a musical instrument accessory is excluded; however, if that gnawing somehow results in a fire or an explosion that damages the musical instrument or other covered property, that loss is a covered one.
Exclusion d., Collapse, has been greatly changed. In the prior policy it simply stated that collapse was excluded except for the coverage provided in the Additional Coverage section of the policy. Now collapse is defined as an abrupt falling down or caving in, and includes loss of structural integrity including separation of parts of the property, bulging, cracking, sagging, settling as relates to loss of integrity or abrupt falling down or caving in. The same exception for coverage provided under the Additional Coverage-Collapse section exists. This provides coverage for the standard listed perils of fire, lightning, windstorm, hail, etc., but only if they cause a loss in conjunction with defective construction materials.
The most we will pay for loss or damage in any one occurrence is the applicable Limit of Insurance shown in the Declarations.
Deductible
We will not pay for loss or damage in any one occurrence until the amount of the adjusted loss or damage before applying the applicable Limits of Insurance exceeds the Deductible shown in the Declarations. We will then pay the amount of the adjusted loss or damage in excess of the Deductible, up to the applicable Limit of Insurance.
Additional Conditions
1.Valuation. General Condition F. Valuation in the Commercial Inland Marine Conditions is replaced by the following:
a.Unsold Property. The value of unsold property will be the least of the following amounts:
(1)The actual cash value;
(2)The cost of reasonably restoring that property to its condition immediately before loss or damage; or
(3)The cost of replacing that property with substantially identical property.
b.Sold Property. The value of property sold but not yet delivered will be your net selling price after all allowances and discounts.
c.Property of Others. The value of property in your care, custody or control will be the lesser of:
(1)The amount for which you are liable, plus the value of labor and materials you have added; or
(2)Actual cash, including labor and materials you have added.
d.Negatives, Positives Or Prints. Negatives, positives or prints are not included in Paragraphs a., b. or c. above. Their value will be the cost of unexposed film or developing paper, including labor and materials you have added in their developing.
In the event of loss or damage, the value of property will be determined as of the time of loss or damage.
Analysis
Form CM 00 21 deletes the valuation clause in the commercial inland marine general conditions form (CM 00 01 09 04) and replaces it with provisions outlining valuation procedures on four categories of property: (a) unsold property; (b) sold property; (c) property of others; and (d) negatives, positives, and prints.
In the case of unsold property (the insured's stock in trade), this valuation clause allows the insurer to choose the least of the following three amounts to pay for such property: the property's actual cash value (note that the policy does not define actual cash value); the amount necessary to restore (repair) the lost or damaged property to its preloss condition; or the amount needed to replace the lost or damaged property. This is not an out of the ordinary provision, but the insured should be aware of the fact that, should a loss occur, this valuation clause exists and will possibly affect the amount of the settlement that the insured expects. In other words, the insured may not get the amount of money he expects from the loss of covered property.
As for property that the insured has sold but not yet delivered, the amount of the valuation will be the selling price and not the price of the item before discounts or allowances. In other words, if the insured sold a camera at a 25 percent discount from the regular retail price, that discounted price is the value of the camera in the eyes of the insurer should that item be damaged before being delivered to the customer.
The insurer will allow the value of the insured's labor and materials to be added to property of others in the care, custody, or control of the insured. So, if the insured has a musical instrument owned by a customer in its care that it has repaired, and the instrument is lost or damaged before the customer can pick it up, the insured will not lose its invested repair costs. This way, the customer gets paid for his lost instrument and the insured gets paid for its repair work.
Negatives, positives, and prints are handled differently when it comes to valuation. The value of most negatives and prints is a subjective thing. For example, a customer's picture of a deceased relative is not worth the same to the customer and the insured camera dealer. To one it is priceless; to the other it is just a piece of film that has been developed. To address this subjective matter, the insurer declares that the value is set at the cost of the unexposed film or developing paper. The customer may not agree and the insured dealer may not like it, but this is a common sense approach to a difficult valuation problem.
For more information on the valuation clause as it exists on CM 00 01, see Introduction, General Rules, and Conditions.
2.The following conditions apply in addition to the Commercial Inland Marine Conditions and the Common Policy Conditions:
a. Coverage Territory . We cover property wherever located within:
(1)The United States of America (including its territories and possessions);
(2)Puerto Rico; and
(3)Canada.
b.Coinsurance.
If a Coinsurance percentage is shown in the Declarations, the following condition applies. We will not pay the full amount of any loss if the value of Covered Property, except property in transit, at the time of loss times the Coinsurance percentage shown for it in the Declarations is greater than the Limit of Insurance for the property. Instead, we will determine the most we will pay using the following steps:
(1)Multiply the value of Covered Property, except property in transit, at the time of loss by the Coinsurance percentage;
(2)Divide the Limit of Insurance of the property by the figure determined in Step (1);
(3)Multiply the total amount of loss, before the application of any deductible, by the figure determined in Step (2); and
(4)Subtract the deductible from the figure determined in Step (3).
We will pay the amount determined in Step (4) or the Limit of Insurance, whichever is less. For the remainder, you will either have to rely on other insurance or absorb the loss yourself.
c.Records And Inventory. You will keep accurate records of your business and retain them for 3 years after the policy ends.
These records will consist of:
(1)An itemized inventory of your stock in trade;
(2)Records of all purchases and sales whether cash or credit;
(3)Records of property of others in your care, custody or control; and
(4)Records of property you send to others for any purpose.
You will also take a physical inventory of all your stock in trade at least every 12 months.
d.Protective Safeguards.
You must maintain the protective safeguards stated by you to be in effect at a location when this coverage began. If you fail to keep the protective safeguards:
(1)In working condition at a location; and
(2)In operation when you are closed to business;
coverage for which the protective safeguards apply is automatically suspended at that location. This suspension will last until equipment or services are back in operation.
Analysis
Coverage for the insured's property exists only in the areas stated. United States possessions and territories are included in the coverage territory, while the coverage is not on a worldwide basis.
The coinsurance clause and the required records and inventory keeping are not unusual conditions for a property coverage form. These items are meant to keep the relationship between the insured and the insurer on a professional, business-like, and honest keel.
The insured should note the protective safeguards clause. Protective safeguards declared by the insured to be in effect at the time coverage begins must be maintained throughout the policy term. If the insured fails to maintain such safeguards in working order or in operation when insured premises are closed, insurance is automatically suspended until the equipment is back in operation. For example, if an insured fails to maintain a declared smoke detector or sprinkler system at an insured premises, fire damage would not be covered; however, theft or other coverages would not be affected. As another example, if the insured fails to maintain a declared burglar alarm, loss caused by an after-hours burglary would not be covered. This condition and its qualifications reflect the fact that the premium has been reduced due to credits based on the safeguards being operational and if the safeguards are not operational, the premium credits are not justified. Since the premium cannot be adjusted every time a safeguard is not kept up, the suspension of coverage is a justifiable response.
The camera and musical instrument dealers coverage form may be amended in a few ways.
The Additionally Covered Property endorsement, CM 99 01 03 10, allows coverage to be extended to furniture, fixtures, office supplies, improvements and betterments, machinery, tools, fittings, patterns, dies, molds, and models. Coverage applies only while the property is within the named insured's premises shown on the declarations page. The improvements and betterments coverage applies only if the named insured does not own the building.
Coverage may be limited to cameras and related equipment and accessories or musical instruments and accessories by substitution of the word "only" for "principally" in the covered property section of CM 00 21.
The earthquake and flood exclusions may be deleted if the insurer accepts the deletions.
Coverage under CM 00 21 is subject to five limits, each declared on the declarations page. There are separate limits on (a) property at each insured location; (b) property away from insured premises in the custody of the insured or employees; (c) on property in transit; (d) and on property not at insured premises, but not in transit or in the care of employees. Finally, the policy is subject to an overall aggregate ("All covered property at all locations"). However, there can be increased limits of insurance for property in employees custody and elsewhere. Amounts up to 10 percent of all limits for the insured's specified locations are provided for property in employee's care and elsewhere at no additional premium charge. The 10 percent limit may be increased for additional premium.
Reporting endorsement, CM 99 02 09 04, allows for the conversion of coverage from nonreporting to a reporting basis.
The advisory declarations page for camera and musical instrument dealers is form CM DS 04 09 00. At the top, it contains boxes to check indicating which type of dealer is covered. It then breaks down the limits for each type of covered property, with a total at the end:
1.Property at your premises, where the address is specified.
2.Property away from your premises in the care, custody, or control of you or your employees.
3.Property in transit.
4.Property not at your premises and not included above.
5.All covered property at all locations.
The rates and premium section is broken into two sections—those items subject to reporting and those not subject to reporting.
The declarations page also contains the following information:
1.The deductible—$500, unless otherwise indicated.
2.Coinsurance—80 percent unless otherwise indicated.
3.Additionally covered property:
a.Furniture, fixtures, and office supplies.
b.Machinery, tools, and fittings.
c.Patterns, dies, molds, and models.
d.Improvements and betterments.