Commercial Property Policy

No matter the size or type of business, tangible property is a major asset. A national standard for insuring such property is the Insurance Services Office (ISO) Commercial Property Program (CPP). The CPP may be written either as a single policy (covering only buildings and property) or as a package (providing property, liability and, other important protection) for your business.

The Parts of A CPP
A Commercial Property Policy is flexible because it consists of several basic parts or forms:

• Declarations Forms - these tell you who is covered, the amount of insurance, the type of coverage written, other information about the business and other identifying details.
• Conditions Forms - these documents contain sets of conditions that control how the policy operates such as the customer's duties when a loss occurs, the method used for settling a loss or what steps to take when the customer and the insurer disagree over the amount of a loss.
• Coverage Forms - these include descriptions of the type of property that is covered or excluded and it explains items such as coverages, insurance limits, definitions, deductibles and other important provisions.
• Causes of Loss Forms - as you might expect, these forms describe the causes of loss (perils) that are insured against and any exclusions.
• Policy Cover or Jacket - this is, literally, a cover designed by the company providing the policy and it usually includes a table of contents or an index.

The above, basic parts can be modified or supplemented to better fit different types of businesses by adding a wide variety of optional coverage forms called endorsements.

Causes Of Loss Forms
The following Causes of Loss Forms are available under the CPP:

• BASIC - protects against Fire, Lightning, Explosion, Windstorm, Hail, Smoke, Aircraft or Vehicles, Riot or Civil Commotion, Sprinkler Leakage, Vandalism, Sinkhole Collapse, and Volcanic Action
• BROAD - adds several additional covered causes of loss over the Basic Form, including Breakage of Glass, Falling Objects, Weight of Snow, Ice, or Sleet, and Water Damage.
• SPECIAL - provides coverage on an "all risk" basis which essentially covers anything not otherwise excluded. 
• EARTHQUAKE - covers earthquake shocks or volcanic eruptions that occur within any 168-hour period.

What is covered?
See Commercial Property Coverages

What is not covered? 
Like any insurance policy, there are items that are not covered. A CPP does not provide coverage for:

• Accounts, bills, currency (and similar property)
• Animals
• Automobiles held for sale, most vehicles
• Bridges, roadways, walks, patios, or other paved surfaces
• Contraband
• Property being transported by air or over waterways
• Land, crops, underground property
• Expenses related to replacing company records and other property

Again, this is just a very brief discussion of the CPP. If you need more information, help is nearby. Contact a Towne Insurance professional to talk about coverages and your coverage needs.