I was recently contacted by an insured who experienced a substantial fire to their party rental business. They do not own the building and the coverage that they have in force is a Commercial General Liability policy from State National Insurance Company, Inc. The policy forms reference ISO Properties, Inc., 2007.
On the declaration page, the only coverage type with a premium component next to it is Commercial General Liability Part.
The endorsement IL 00 03 09 08 for the calculation of the premium has a list of coverages that are modified by this endorsement. One of the coverages listed is Commercial Property Coverage Part.
We understand that endorsements supersede the policy. Does this endorsement listing Commercial Property Coverage as being modified provide coverage for commercial property damage?
California Subscriber
The interline endorsement IL 00 03 is an endorsement that sets forth how the premiums were calculated under the policy for all or any of the listed coverage parts. The list at the top of the form indicates that the endorsement can be attached to any of those forms. That list does not indicate that those forms are part of the policy. The declarations is where you find a list of all forms that apply. The endorsement modifies the listed coverage parts, but if a particular coverage part is not attached to and made a part of the policy, as shown in the declarations, then the endorsement cannot modify that coverage part.
The endorsement can only modify coverage parts that are attached to the policy. Premiums cannot be calculated for a coverage that the insured has not purchased to be part of the policy, which is exactly the case you describe. The insured chose to purchase general liability coverage, but not commercial property coverage, so there will be no coverage for the insured's business personal property damaged by the fire.