IInsurance Services Office, Inc. (ISO) has introduced the ISO Capital Assets Program – a manufacturers output type policy – that enables insurers to provide large and medium commercial accounts superior coverage and pricing flexibility for buildings and business personal property. Insurers can also combine other types of coverage such as general liability, boiler and machinery, and crime with the new ISO program.
The ISO Capital Assets Program provides businesses coverage on a blanket, replacement-cost basis without a co-insurance provision. The program also provides options to value property at actual cash value, agreed value, or, for buildings, functional replacement cost. Coverage for buildings includes signs, foundations of buildings, structures and machinery; bulkheads, pilings, piers, wharves or docks; underground pipes, flues or drains and retaining walls. Valuation of any property that is specifically described and scheduled for coverage on the basis of a prior agreement is also available. ISO has filed the ISO Capital Assets Program with regulators for approval in all jurisdictions, with a proposed effective date of July 1, 2002.
Under the ISO program, business personal property includes property held for installation at a job site and mobile equipment. Up to $100,000 of additional coverage is provided for business personal property at covered locations – anywhere in the world – that the insured does not own, lease or operate. Expenses for brands and labels, and ordinance or law coverage for the value of the undamaged portion of the building are provided up to the limits of the policy. Business income and extra expense coverages are written into the form and can be activated by entries on the policy declaration page.
The ISO program also provides these major coverages:
accounts receivable, fine arts, valuable papers and records, demolition cost and increased cost of construction due to ordinance or law at a $100,000 limit;
property in transit, consequential loss, fire extinguisher systems expense, inventory and appraisal expense, and pollution cleanup and removal at a $50,000 limit;
crime and fidelity at these limits: $25,000 for employee theft, $25,000 for forgery or alteration, and $25,000 inside/$10,000 outside money and securities; and
arson reward at $10,000, precious alloys and metals at $25,000, stamps at $5,000, furs at $10,000, personal effects at $10,000, and outdoor trees, shrubs and plants at $25,000 per occurrence with a $1,000 per tree, shrub and plant sub limit.
The ISO Capital Assets Program offers 30 optional endorsements that insurers may use to provide, amend or exclude coverages.
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