“This post is the first of a three-part series expounding on the theme of using coverage gaps to sell; but rather than specific coverage gaps, these three posts focus on endorsements to the commercial property, commercial auto and commercial general liability policies every insured should consider or avoid (in the case of the CGL article).<\/p>\n

Three key commercial property endorsements are discussed in this first installment, the: 1) Additional Covered Property<\/strong> endorsement (CP 14 10 or state-specific form); 2) Additional Building Property<\/strong> endorsement (CP 14 15); and 3) Joint or Disputed Loss Agreement<\/strong> (CP 12 70). Obviously these are not the only commercial property endorsements valuable to a specific insured, but these are three every<\/u> insured should consider.<\/strong><\/em>”<\/p>\n<\/blockquote>\n

Notice how Boggs clearly indicates what agents should do. He notes that an agent or broker should make the coverage gap known to the policyholder. He then explains in the article what endorsements the policyholder should consider purchasing and why:<\/p>\n

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“The commercial property policy contains a list of "property not covered" within the form itself. Among the list of excluded property exists several property types or real and personal property the insured (and possibly even the agent) may assume is covered by the policy but is not. Examples include building foundations, underground pipes, flues or drains and fencing (this is not a complete list of excluded property, just a sample).<\/p>\n

Some excluded property can be added back to the list of "covered property" via the Additional Covered Property<\/strong> endorsement. Two broad versions of the form are available from ISO – based on the state in question:<\/p>\n

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1. The CP 14 10<\/strong><\/em>. This is essentially a blank form allowing the insured to specifically list the property they wish to remove from the "property not covered" list and include as covered property; and<\/li>\n
2. ISO State-specific endorsements<\/em><\/strong>. Two examples are N.C. (CP 14 11) and Va. (CP 14 12). In forms such as these, several types of real and personal property are taken from the list of "property not covered" within the unendorsed coverage form and listed on the endorsement. The insured chooses which property it desires to include as "covered property" and indicates that choice by placing an "X" in the box next to that property class.<\/li>\n<\/ol>\n

   Any removal of property from the "property not covered" list and its endorsed inclusion on the "covered property" list is, of course, subject to underwriter approval – regardless of which version of the form is used.”<\/p>\n<\/blockquote>\n

   Everybody can learn from people who have a specialized knowledge in a field. Chris Boggs can teach all of us a lot about property insurance coverage from the perspective of agents and brokers selling these products.<\/p>\n","protected":false},"excerpt":{"rendered":"

   One of the more interesting aspects of my job as an advocate for policyholders is learning from non attorneys what insurance products mean at the point of sale and how they are supposed to work after the loss. This may seem a little curious to many, but if you think about it, why would anybody trust …<\/span><\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[],"tags":[37,188,4,184],"class_list":["post-7583","post","type-post","status-publish","format-standard","hentry","tag-business-property","tag-coverage","tag-insurance","tag-policy-language"],"acf":[],"yoast_head":"\n