Commercial Property Update

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Commercial Property Endorsements

Brands And Labels CP 04 01
The Brands And Labels CP 04 01 endorsement provides for insurance company payment of reasonable costs incurred by the named insured to perform stamping and re-labeling. Total direct loss and expenses are paid subject to the limit.

Ordinance Or Law Coverage CP 04 05
The recent revisions to Ordinance Or Law Coverage CP 04 05:

Clarify that the ordinance or law coverage responds to the extent that a covered cause of loss had caused the direct damage

Allow for proportional payment between covered and uncovered loss

This same language applies to the Functional Replacement Cost Endorsement CP 04 38 language relating to ordinance or law.
Coverage questions include:

Does fire activate the earthquake retrofitting code?

Was the building damaged by both fire (covered loss) and earthquake (uncovered loss)?

Did the fire ensue from an earthquake activating a demolition order and changed ordinances?

Did fire occur in another part of the building not occupied by the named insured that causes code upgrades in the occupied space?

Does a small kitchen fire in restaurant invokes ADD compliance to the entire restaurant?

Note that this coverage endorsement is titled Ordinance Or Law - but only applies to covered buildings.

Debris Removal Additional Insurance CP 04 15
Th revised Debris Removal Additional Insurance endorsement removes the original additional $10,000 and replaces it with the amount shown on this endorsement.

Vacancy Changes CP 04 60
The Vacancy Changes endorsement allows a change to be made to the percentage (%) of total square footage rented to invoke the vacancy reduction of coverage.

Flood Coverage CP 10 65
The ISO Commercial Property program has not provided Flood coverage in the past. The Flood Coverage endorsement can be written as first dollar coverage or written above the federally reinsured limits of the National Flood Insurance Program.

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Not only are policy forms, clauses, rules and court decisions constantly changing, but forms vary from company to company and state to state. This material is intended as a general guideline and might not apply to a specific situation. The authors, LunchTimeCE, Inc., CEfreedom, and Insurance Skills Center, and any organization for whom this course is administered will have neither liability nor responsibility to any person or entity with respect to any loss or damage alleged to be caused directly or indirectly as a result of information contained in this course.