We insure an attorney's firm under a BP 00 03 Coverage Form, 01 06 edition. This attorney has 3 different locations, in 3 different cities listed under this coverage form. There is BPP listed for each location. The insured premises in in City C was completely destroyed by a recent tornado. The other locations in City A and City B, were not affected by the recent storm.
In reviewing the Declarations related to this loss, the insured location in City A lists the IH 00 75 Computer Systems Form, 09 09 edition under that location. An amount of coverage of $5,000 of software components is a listed coverage under that endorsement.
Members of our management team are split as to if the coverage of the IH 00 75 in City A, can be applied for the location in City C. Some contend that the coverage is listed under the property in City A, so therefore, it applies to the software components related to the City A location. Others contend that the wording of the IH 00 75 form does not appear to limit its coverage to one singular location, nor specify one location. Since this form is attached to this policy, and this policy covers 3 different locations, that endorsement can apply to all 3 locations.
Does the coverage supplied by the IH 00 75 in City A, extend to the loss location in City C? Thanks for your thoughts on the matter.
Kentucky Subscriber
The IH 00 75 provides inland marine coverage, not commercial property. As such, it is not bound by the location specified in the Declarations, as inland marine is 'moveable' property and can be moved from one location to another. The coverage form IH 00 75 does not specify that the computer equipment has to be at any one location; in fact it can be at any location—even one not scheduled on the policy—for there to be coverage.
The computer coverage can extend to City C in this instance.
As an aside, it is likely that the coverage was added to the first location for rating purposes only. Often companies are bound by the limitations of their rating systems, which are then used to issue the policies. The rater has to have a place where they can add the $5,000 coverage and the rating system requires them to apply it to a location, so it would just make sense for them to apply it to the first location.