Summary: Form CM 00 22 09 04 provides equipment dealers coverage under the Insurance Services Office commercial insurance program. The form's purpose is to provide coverage for dealers in agricultural implements and contractors' equipment, insuring the dealer's stock in trade and similar property of others in the dealer's custody or control. Following is a discussion of the form.
Equipment dealers form CM 00 22 provides open perils coverage for dealers in mobile agricultural and construction equipment. Coverage may be written on a reporting or nonreporting basis. When written on a reporting basis, form CM 99 02 09 04 is attached. To create a monoline equipment dealers coverage policy, form CM 00 22 is used together with policy declarations and equipment dealers declarations pages, common policy conditions form IL 00 17 11 98; (see Common Policy Conditions), Commercial Inland Marine Conditions form CM 00 01 09 04 (see Introduction, General Rules and Conditions), and any appropriate endorsements. Declarations pages and forms for any other desired or necessary coverages may be added to complete a package policy for the insured.
A. 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 mobile agricultural and construction equipment; and
b. Similar property of others in your care, custody or control.
Analysis
The equipment dealers coverage form provides open perils coverage, promising to pay for direct physical loss of or damage to covered property from any covered cause of loss. Note that the word “loss” has been replaced with the phrase “direct physical loss of or damage to.” The “covered causes of loss” applicable to this form are “risks of direct physical loss to covered property except those causes of loss listed in the exclusions.”
The form defines covered property as the named insured's stock in trade. The stock in trade consists principally of mobile agricultural and construction equipment. The form also covers similar property of others in the care, custody or control of the insured. This definition of property is broad enough to include miscellaneous items that a dealer may carry for the accommodation of customers. Coverage would be provided, for example, for an inventory of sun glasses or jackets carried by a farm equipment or contractor's equipment dealer.
Note, however, that the definition of covered property does not mean that only mobile agricultural and construction equipment and the accessories of either are covered. If this form is written for an eligible risk, all of the insured's stock is covered. For example, if a mobile farm equipment dealer also sells seed and grain, that inventory is also covered.
2. Property Not Covered
Covered Property does not include:
a. Automobiles, motor trucks, motorcycles, aircraft or watercraft;
b. Accounts, bills, currency, deeds, money, notes, securities and evidences of debt;
c. Property while in the course of manufacture;
d. Property leased, rented or sold, including property sold under a deferred payment sales agreement, after it has left your custody or the custody of carriers for hire when you are responsible for delivery;
e. Furniture, fixtures, office supplies, improvements and betterments, machinery, tools, fittings, patterns, dies, molds and models;
f. Property of others described in the Declarations; or
g. Contraband, or property in the course of illegal transportation or trade.
Analysis
Though the scope of covered property is broad where the insured's inventory consists primarily of mobile agricultural and contractor's equipment, the form does list certain types of property as “property not covered.”
The insured may choose to cover any or all of the property in item “e” by entering amounts of insurance in the spaces provided in the declarations for additionally covered property and attaching additionally covered property endorsement CM 99 01 09 00. That endorsement includes a separate 80 percent coinsurance clause identical to the clause in form CM 00 22. That clause applies to each of the items listed as “additionally covered property.”
Item “f,” property of others described in the declarations, applies only to property of others that the insured does not wish to cover under the equipment dealers form for whatever reason. The most usual reason for not wanting to cover the property of others is that dealers coverage on property of others is limited in amount to the smaller of the actual cash value of the property including labor and materials added by the insured; or the amount for which the insured is liable plus value of labor and materials added, with no coverage for the insured's possible additional liability for loss of use of the equipment.
Loss of use could be a sizable item with the kinds of equipment held by equipment dealers, in some cases perhaps involving substantially more than the actual cash value of the equipment itself. The 80 percent coinsurance clause (or the value reporting provision unless reports are of gross sales) applies to the value of insured property of others as well as the insured's own property, creating additional valuation problems that may be avoided by insuring the property of others separately.
3. Covered Causes Of Loss
Covered Causes of Loss means RISKS OF DIRECT PHYSICAL LOSS OR DAMAGE to Covered Property except those causes of loss listed in the Exclusions.
Analysis
As noted above, the equipment dealers form is open perils—unless excluded, a loss is covered. In the current version, “loss” is an undefined term, and the coverage includes damage as well as loss. This wording emphasizes that a “loss” may be only partial; that it may consist of “damage.” The previous wording left some thought that “loss” meant “total loss.” Since “covered property” consists principally of mobile agricultural or construction equipment, this same coverage applies to other miscellaneous items the insured may stock, as well as property of others in the insured's care.
4.Additional Coverage – Collapse
We will pay for direct physical loss or damage to Covered Property, caused by collapse of a building or any part of a building that contains Covered Property insured under this Coverage Form, if the collapse is caused by one or more of the following:
a.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; all only as insured against in this Coverage Form;
b.Decay that is hidden from view, unless the presence of such decay is known to an insured prior to collapse;
c.Insect or vermin damage that is hidden from view, unless the presence of such damage is known to an insured prior to collapse;
d.Weight of people or personal property;
e.Weight of rain that collects on a roof;
f.Use of defective materials or methods in construction, remodeling or renovation if the collapse occurs during the course of the construction, remodeling or renovation. However, if the collapse occurs after construction, remodeling or renovation is complete and is caused in part by a cause of loss listed in Paragraphs a. through e., we will pay for the loss or damage even if use of defective material or methods, in construction, remodeling or renovation, contributes to the collapse.
This Additional Coverage does not increase the Limits of Insurance provided in this Coverage Form.
Analysis
The additional coverage clause for collapse was revised in 2004 to provide some level of consistency with other commercial property forms. The form provides coverage for direct physical loss or damage to covered buildings or any part of a building that contains covered property. The collapse must be caused by one of the perils listed. It is important to note that decay or insect or vermin damage that is hidden from view is covered only if an insured does not know of the damage prior to the collapse. A provision for post-construction collapses was also added with the 2004 revision. If defective materials or methods used in the construction, remodeling, or renovation contribute to a collapse, loss or damage caused partially by causes of loss listed in paragraphs a. through e. are covered.
5. Coverage Extensions
a. Debris Removal
(1)Subject to Paragraphs (3) and (4), we will pay your expenses to remove debris of Covered Property caused by or resulting from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the date of direct physical loss or damage.
(2)Debris Removal does not apply to costs to:
(a)Extract “pollutants” from land or water; or
(b)Remove, restore or replace polluted land or water.
(3)Subject to the exceptions in Paragraph (4), the following provisions apply:
(a)The most we will pay for the total of direct physical loss or damage plus debris removal expense is the Limit of Insurance applicable to the Covered Property that has sustained loss or damage.
(b)Subject to (a) above, the amount we will pay for debris removal expense is limited to 25% of the sum of the deductible plus the amount that we pay for direct physical loss or damage to the Covered Property that has sustained loss or damage.
(4)We will pay up to an additional $10,000 for debris removal expense, for each location, in any one occurrence of physical loss or damage to Covered Property, if one or both of the following circumstances apply:
(a)The total of the actual debris removal expense plus the amount we pay for direct physical loss or damage exceeds the Limit of Insurance on the Covered Property that has sustained loss or damage.
(b)The actual debris removal expense exceeds 25% of the sum of the deductible plus the amount that we pay for direct physical loss or damage to the Covered Property that has sustained loss or damage.
Therefore, if (4)(a) and/or (4)(b) apply, our total payment for direct physical loss or damage and debris removal expense may reach but will never exceed the Limit of Insurance on the Covered Property that has sustained loss or damage, plus $10,000.
(5)Examples
The following examples assume that there is no coinsurance penalty.
Example #1
| Limit of Insurance | $ | 90,000 |
| Amount of Deductible | $ | 500 |
| Amount of Loss | $ | 50,000 |
| Amount of Loss Payable | $ | 49,500 |
| ($50,000 – $500) | ||
| Debris Removal Expense | $ | 10,000 |
| Debris Removal Expense | ||
| Payable | $ | 10,000 |
| ($10,000 is 20% of $50,000) | ||
The debris removal expense is less than 25% of the sum of the loss payable plus the deductible. The sum of the loss payable and the debris removal expense ($49,500 + $10,000 = $59,500) is less than the Limit of Insurance. Therefore the full amount of debris removal expense is payable in accordance with the terms of Paragraph (3).
Example #2
| Limit of Insurance | $ | 90,000 |
| Amount of Deductible | $ | 500 |
| Amount of Loss | $ | 80,000 |
| Amount of Loss Payable | $ | 79,500 |
| ($80,000 – $500) | ||
| Debris Removal Expense | $ | 30,000 |
| Debris Removal Expense | ||
| Payable | ||
| Basic Amount | $ | 10,500 |
| Additional Amount | $ | 10,000 |
The basic amount payable for debris removal expense under the terms of Paragraph (3) is calculated as follows: $80,000 ($79,500 + $500) x .25 = $20,000; capped at $10,500. The cap applies because the sum of the loss payable ($79,500) and the basic amount payable for debris removal expense ($10,500) cannot exceed the Limit of Insurance ($90,000).
The additional amount payable for debris removal expense is provided in accordance with the terms of Paragraph (4), because the debris removal expense ($30,000) exceeds 25% of the loss payable plus the deductible ($30,000 is 37.5% of $80,000), and because the sum of the loss payable and debris removal expense ($79,500 + $30,000 = $109,500) would exceed the Limit of Insurance ($90,000). The additional amount of covered debris removal expense is $10,000, the maximum payable under Paragraph (4). Thus the total payable for debris removal expense in this example is $20,500; $9,500 of the debris removal expense is not covered.
b.Pollutant Clean Up And Removal
We will pay your expense to extract “pollutants” from land or water if the discharge, dispersal, seepage, migration, release or escape of the “pollutants” is caused by or results from a Covered Cause of Loss that occurs during the policy period. The expenses will be paid only if they are reported to us in writing within 180 days of the date on which the Covered Cause of Loss occurs.
This Coverage Extension does not apply to costs to test for, monitor or assess the existence, concentration or effects of “pollutants”. But we will pay for testing which is performed in the course of extracting the “pollutants” from the land or water.
The most we will pay under this Coverage Extension is $10,000 for the sum of all covered expenses arising out of Covered Causes of Loss occurring during each separate 12 month period of this policy.
The limit for this Coverage Extension is in addition to the Limit of Insurance.
c.Theft Damage To Buildings
(1)We will pay for damage caused directly by theft or attempted theft to:
(a)That part of any building containing Covered Property; or
(b)Equipment within the building used to maintain or service the building;
only if you own the building or are legally responsible for the damage.
(2)But, we will not pay for damage:
(a)Caused by fire; or
(b)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
The policy covers damage directly caused by theft or attempted theft to certain buildings. The building must contain covered property or equipment that is used to maintain or service the building. This extension applies if the insured owns the building or is legally responsible for the damage. This form provides no other legal liability coverage.
The form does not cover damage caused by fire. It also does not cover damage by any cause to building glass or to lettering or art work on the glass. The coverage is subject along with other covered property to the limit of insurance for covered property. Although the language of the coverage extension and of the coinsurance clause is unclear on this point, the value of buildings covered by this extension is generally regarded as not included in the property value on which the application of coinsurance is based. Bolstering this argument is the language of the extension itself, in that “Covered Property” is capitalized, and therefore refers to the subject of the insurance, but “any building” is not.
Debris removal is also a coverage extension. The form pays for expenses to remove debris of covered property caused by a covered cause of loss as long as the expenses are reported in writing to the insurer within 180 days of the earlier of the date of direct loss or the end of the policy period. This extension pays up to 25 percent of the amount that the insurer pays for the direct loss plus the deductible applicable to that loss, with an additional $10,000 limit provided under certain circumstances. The coverage extension does not apply to costs to extract pollutants from land or water or to remove, restore, or replace polluted land or water.
The pollutant cleanup and removal extension allows the insured to collect up to $10,000 for expenses to extract pollutants from land or water. The release or discharge of the pollutants must be caused by a covered cause of loss that occurs during the policy period, and if the expenses are reported in writing within 180 days of the date on which a covered cause of loss occurred. The $10,000 is an aggregate amount. The 2004 form now applies to the seepage, migration, and escape of pollutants. The 2004 version also added a provision specifying costs that are not covered by the extension.
B. Exclusions
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. 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.
b. Nuclear Hazard
(1) Any weapon employing atomic fission or fusion; or
(2) Nuclear reaction or radiation, or radioactive contamination from any other cause. 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.
c. 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.
d. Water
Flood, surface water, waves, tides, tidal waves, overflow of any body of water or their spray, all whether driven by wind or not.
But if water, as described above, 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.d. apply whether or not the loss event results in widespread damage or affects a substantial area.
2. We will not pay for loss or damage caused by or resulting from any of the following:
a. Delay, loss of use, loss of market or any other consequential loss.
b. Unexplained disappearance.
c. Shortage found upon taking inventory.
d. 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.
e. Processing or work upon the property.
But, if processing or work upon the property 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.
f. Artificially generated current creating a short circuit or other electric disturbance within an article covered under this Coverage Form.
But, if artificially generated current, as described above, 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.
This exclusion only applies to loss or damage to that article in which the disturbance occurs.
g. 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.
h. Unauthorized instructions to transfer property to any person or to any place.
i. Neglect of an insured to use all reasonable means to save and preserve property from further damage at and after the time of loss.
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 except as provided in the Additional Coverage—Collapse section of this Coverage Form.
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
Most of the exclusions section of the equipment dealers form is similar to that of most of the other ISO inland marine forms. There are three sets of exclusions. The first applies to loss or damage caused directly or indirectly by governmental action, nuclear hazard, war and military action, and water (limited to flood, surface water, waves, tides, tidal waves, overflow of a body of water, or their spray whether wind-driven or not). This first set of exclusions applies regardless of any other cause that may contribute to the loss or damage. The form also specifies that the first group of exclusions applies regardless of how widespread the loss is.
The second group excludes loss or damage caused by or resulting from delay, loss of market, or any other consequential loss. Similar to other property forms, unexplained disappearance, inventory shortage; dishonest acts by the insured (including the insured's partners, employees, members or authorized representatives of either); anyone with an interest in the property; or anyone entrusted with the property (but not to carriers for hire) are excluded. Processing or work on the property are also excluded (but direct loss caused by resulting fire or explosion is covered, if those causes of loss are covered under the coverage form), as well as artificially generated current (but exempting resulting fire or explosion), applying only to the article in which the disturbance occurs; voluntary parting with property due to any fraudulent scheme, trick, device, or false pretense; and unauthorized instructions to transfer property to any person or place.
The policy does make an exception to the exclusion and provides coverage for acts of destruction (theft excepted) by the insured's employees. This language clarifies that such acts are covered. Therefore, loss to covered property resulting from a fire set by a disgruntled employee is covered. However, if the employee steals covered property and then sets a fire to cover his tracks, there would be no coverage for the property or to the building under this form (as discussed under the theft damage to buildings coverage extension).
The neglect exclusion emphasizes that the insured must use all reasonable means to protect covered property from loss.
The third set of exclusions involves loss or damage by or resulting from (but exempting resulting loss or damage by a covered cause of loss): (a) weather conditions (applying only to weather as a contributing cause of a loss not included in the first group of exclusions listed above); (b) acts or decisions, including failure to act or decide, of any person, group, organization, or governmental body; (c) faulty, inadequate, or defective planning, design, materials, or maintenance; (d) collapse, except as provided by the collapse additional coverage, and (e) the wear and tear exclusion.
As an example of excluded weather conditions causing an excluded loss, consider excessive rainfall contributing to runoff of surface water that enters the insured's basement, damaging stock. Since surface water is excluded, the loss is excluded. However, if excessive rainfall builds up on and leaks through the roof, damaging stock, the loss is covered. In the same way, if faulty maintenance causes a furnace to malfunction, which in turn causes a fire, the resulting fire loss is covered, though the cost to repair the faulty job done on the furnace is not.
C. Limits of Insurance
The most we will pay for loss or damage in any one occurrence is the applicable Limit of Insurance shown in the Declarations.
D. 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.
Analysis
A $500 mandatory minimum deductible applies to the equipment dealers coverage form unless indicated otherwise in the declarations. The deductible applies as follows: the insurer has no obligation to pay for loss unless the adjusted loss—before application of limits—is greater than the deductible. When the adjusted loss is greater than the deductible, the insurer will pay the amount of the loss—again, before application of limits—that is in excess of the deductible. This amount is payable up to the limit of liability.
E. 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 of that property;
(2) The cost of reasonably restoring that property to its condition immediately before “loss”; 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 value, including labor and materials you have added.
In the event of loss or damage, the value of property will be determined as of the time of loss or damage.
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
The equipment dealers policy is written with a coinsurance clause (amount to be shown in the declarations) that applies to the total value of all covered property at all locations except property in transit. When the coverage is written on a reporting basis, the coinsurance clause is deleted and replaced by the information found on CM 99 02, the reporting form. This form states that if the insured has not submitted any required reports, in event of a covered loss the insurer will pay no more than 90 percent of the amount otherwise payable. Or, if the report prior to the loss shows understated values, then only a proportion of the loss that the reported amount bears to the total amount of all covered property as of the time of the last report will be paid.
The conditions require the insured to keep accurate records for three years following the end of the policy period. Since the form provides coverage up to the policy limit for property of others, the records must include documentation as to any such property. And since, as is common with agricultural equipment dealers, much business is done on a credit basis, records detailing such transactions must be maintained.
The insurer may require protective safeguards, such as burglar or fire alarms or sprinkler systems. If this is the case, then the insured must maintain them in working order and in operation for coverage to apply to the perils addressed by the systems, such as fire and theft. If the insurer requires protective safeguards, then, according to the commercial lines manual (CLM), the policy must be endorsed to require the insured to notify the insurer if such systems become inoperative.
In keeping with the nature of the equipment dealers' business, the form's valuation clause recognizes that much of the business may consist of repairing equipment. Therefore, the provision for valuation of property of others includes, as part of the value, the value of labor and materials added by the equipment dealer.
F. Definitions
”Pollutants” means any solid, liquid, gaseous, or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes material to be recycled, reconditioned or reclaimed.
Analysis
In common with all current commercial forms, “pollutants” is a defined term. Coverage exists as discussed under coverage extensions. The word “loss” is no longer a defined term on this form.
The advisory equipment dealers declarations page is form CM DS 06 09 00. The first part breaks out the limits for the various types of covered property:
1. Property at the named insured's premises. Specific addresses must be shown. The limit at each address is then broken down into inside and outside a building.
2. Property at other premises the named insured acquires. This coverage is good for thirty days from the date of acquisition.
3. Property in transit.
4. Property not at the insured's premises and not included above.
5. A total of all covered property.
Again, the rates are broken into reporting and nonreporting.
The second page has places for the following information:
1. Deductible—$500 unless otherwise indicated.
2. Coinsurance—80 percent unless otherwise indicated.
3. Additionally covered property (applicable limits):
a. Furniture, fixtures, and office supplies.
b. machinery, tools, and fittings.
c. Patterns, dies, molds, and models.
d. Improvements and betterments.