Summary: With a proposed effective date of June 1, 2026, ISO is revising the title of one commercial property endorsement and adding three new endorsements. According to ISO, none of these endorsements add or remove coverage under the policy but are a clarification or reinforcement of coverage intent.

This re-titled endorsement is used on a tenant's policy to cover the interests of the owner of the building. The title is revised from additional insured to named insured to clarify that the building owner is a named insured under the policy with respect to direct physical loss or damage to the building(s) described in the schedule.

This endorsement modifies insurance provided under the following:
COMMERCIAL PROPERTY COVERAGE PART
STANDARD PROPERTY POLICY

The following exclusion is added:

We will not pay for loss or damage caused directly or indirectly by 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.

Space Weather
Space weather, meaning any condition or event originating beyond the Earth's upper atmosphere that interacts with Earth's magnetosphere, ionosphere, thermosphere or upper atmosphere, that disrupts or otherwise interferes with property that is space-borne, atmospheric or ground-based. Such condition or event includes, but is not limited to, solar wind, space particles, space electromagnetic radiation, solar energetic proton events, high-speed solar wind streams, coronal mass ejections, solar flares or geomagnetic storms.

Analysis:

This is a new mandatory endorsement that excludes loss or damage caused directly or indirectly by space weather, regardless of any other cause or event that contributes concurrently or in any sequence to the loss.

The endorsement adds a broad meaning of space weather and describes a number of conditions or events that meet that meaning, while clarifying that this is not an all-exhaustive or all-inclusive list.
In their LI-CF-2025-117 circular announcement of the endorsement, ISO provided a comprehensive background of information that is condensed below.The background information was derived from sources including National Aeronautics and Space Administration (NASA), Space.com, NASASpaceFlight.com and The National Oceanic and Atmospheric Administration (NOAA).

While previous filings of ISO included reference to the term electromagnetic in relation to energy, pulses, waves or sources, there have heretofore been no filings addressing space weather in general, or solar events. Current exclusions in the commercial property program that could come into play in circumstances are those that address nuclear hazard and utility services.

According to the National Aeronautics and Space Administration (NASA), the term "space weather" was "coined not long ago to describe the dynamic conditions in the Earth's outer space environment, in the same way that 'weather' and 'climate' refer to conditions in Earth's lower atmosphere. Space weather includes any and all conditions and events on the sun, in the solar wind, in near-Earth space and in our upper atmosphere that can affect space-borne and ground-based technological systems and through these, human life and endeavor."

Enumerated examples include solar wind, space particles, electromagnetic radiation, solar energetic proton events, high‑speed solar wind streams, coronal mass ejections (CMEs), solar flares, and geomagnetic storms.

  • Solar Flares and Coronal Mass Ejections (CME's) both involve gigantic explosions of high-energy particles, but are otherwise different.
  • Flares are sudden flashes of light, lasting from minutes to hours and can travel to Earth within minutes.
  • Coronal Mass Ejections (CMEs): large ejections of solar matter often linked to flares; potential impacts include auroras, power grid overloads/blackouts, radio transmission impairment, and GPS degradation due to ionospheric disturbances.
  • Geomagnetic storms: major disturbances in Earth's magnetosphere from efficient solar wind energy transfer; these storms can significantly alter atmospheric temperature/ density and disrupt satellite navigation.

Historical and recent impact examples include:

  • 1859 Carrington Event: considered the benchmark for extreme space weather studies as it is one of the largest on record. Upon impact, telegraph systems across Europe and North America, which took the brunt of the impact, failed, resulting in severe telegraph failures, shocks, and fires. Conservative estimates are that a repeat of this type of event today could cause trillions in damage and years-long recovery.
  • 1972 solar flare: disrupted long-distance U.S. telephone service across various states.
  • 1989 solar storm: power outage affecting ~6 million in Canada.
  • 2012 near-miss: a Carrington-class superstorm erupted from the sun and narrowly missed Earth.
  • Recent event: a geomagnetic storm led to the demise of ~40 commercial satellites; forecasts existed prior to the satellite launch but were disregarded by the company, resulting in an approximate $20 million loss.

Given all the information at hand, the practical underwriting/claims implication is that the broad exclusionary scope may apply to a wide range of technologically driven losses (space, atmospheric, and ground systems), even when space weather is one of multiple concurrent causes.

This endorsement modifies insurance provided under the following:
COMMERCIAL PROPERTY COVERAGE PART
STANDARD PROPERTY POLICY

A.     The following condition is added under this Coverage Part or Policy:

Litigation Funding Mutual Disclosure
If we and you do not agree whether or to what extent a claim or suit is covered by this Coverage Part or Policy, either party may make a written demand for mutual disclosure of any "third-party litigation funding agreement(s)" regarding that claim or suit.
When this demand is made, each party will disclose in writing within 30 days whether they or their attorney(s) have executed any "third-party litigation funding agreement(s)". If a party or their attorney(s) have executed any "third-party litigation funding agreement(s)", the written disclosure must include:

  1. A copy of such "third-party litigation funding agreement(s)";
  2. The name(s) of each person or organization who has entered into such "third-party litigation funding agreement(s)";
  3. Whether such person or organization is required to approve of or be consulted on litigation or settlement decisions, and if so, the nature of the terms and conditions relating to that approval or consultation; and
  4. A brief description of the financial interest of any person or organization who provided such funding.
Each party must provide to the other party a copy of any update of their written disclosure within 30 days of:

  • Any change in information in Paragraphs 1. through 4.; or
  • When the parties or their attorney(s) have executed any "third-party litigation funding agreement(s)" after the initial demand.
B.The following definition applies under this endorsement:

"Third-party litigation funding agreement" means any agreement for funding provided to a party or their attorney(s) for a specified legal matter, or portfolio of specified legal matters, in exchange for an agreement by the party or their attorney(s) to repay the funding and/or pay any applicable consideration, contingent upon the outcome of the specified legal matter or portfolio of specified legal matters.

Analysis:

Third-party litigation funding (TPLF) is on the rise and is changing the claims and litigation landscape.In brief, it is a financial arrangement where a third party, such as a private equity firm or hedge fund, provides capital to a plaintiff or law firm to cover their expenses. Typically, the funding will only be repaid if the case is successful, and the third party will then receive a portion of the settlement or judgment. It is a huge financial industry that is growing into multi billions of dollars and is considered a contributing factor to social inflation. It remains unregulated; however there have been efforts at the state and federal levels to establish disclosure rules as part of the litigation discovery practices. Some states have enacted laws addressing this, and may include a requirement to disclose the existence or contents of the TPLF agreement.

As an optional endorsement, ISO is making available CP 99 14 requiring that TPLF agreements be disclosed as a policy condition.

The endorsement adds a new condition for mutual disclosures of any "third-party litigation funding agreement" in such instances where the insured and insurer disagree on whether or not coverage is provided.A definition of "third-party litigation funding agreement" is added to specify the types of agreements that are subject to this condition. The disclosure must be in writing, must be completed by each party within 30 days of execution of the agreement, and must contain certain specific information as outlined in the endorsement. If any change is made subsequent to the disclosure, the update must also be made in writing within either 30 days of the change, or when the agreement(s) have been executed after the initial demand.

This endorsement modifies insurance provided under the following:
COMMERCIAL PROPERTY COVERAGE PART
STANDARD PROPERTY POLICY

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.
This exclusion applies regardless of the means used in any of the above, in Paragraphs 1. through 3., including, but not limited to, cyber means.

Analysis:

ISO has been in the process of adding the newer language of the war and military action exclusion to all lines of commercial business, given the rapidly evolving landscape of cyber risks. The new, mandatory exclusion replaces the original exclusion in the policy to reinforce the original design that the exclusion applies regardless of the means used, and includes but is not limited to, cyber means.

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