ISO FILED INLAND MARINE COVERAGE FORMS OVERVIEW

(August 2024)

INTRODUCTION

The Insurance Services Office (ISO) filed inland marine coverage forms are subject to rate, rule, and form filing requirements. As a result, they are less flexible and are more like commercial business personal property coverage forms than the non-filed inland marine coverage forms. However, the coverage continues to be inland marine and, therefore, broader and includes coverage for property in transit and at other or unnamed locations.

Many of these coverages are frequently added to property coverage forms as supplemental coverages or extensions of coverage. The title of the coverage may even be the same. It is very important to compare the inland marine coverage and the similarly named property coverage because there are often significant differences. Inland marine forms tend to have fewer exclusions and are more targeted. Transit is always a part of the coverage form.

POLICY CONSTRUCTION

ISO has a specific format and arrangement for the coverage forms and endorsements used with filed inland marine coverage. The following forms are mandatory:

IL DS 00–Common Policy Declarations
IL 00 17–Common Policy Conditions

Related Article: IL 00 17–Common Policy Conditions

CM DS 02–Advisory Commercial Inland Marine Declarations or

CM DS 01–Advisory Commercial Inland Marine Coverage Part Renewal Endorsement

CM 00 01–Commercial Inland Marine Conditions

The appropriate coverage form

The corresponding declarations
Policy Cover Page or Jacket. Individual insurance companies design this form for their own purposes and may include a table of contents or index to meet the requirements of some states.

BRIEF DESCRIPTION OF THE ISO FILED INLAND MARINE COVERAGE FORMS

Accounts Receivable Coverage Form

Coverage:

This coverage form insures the named insured’s losses for amounts due that it cannot collect because of insured loss or damage to records of accounts receivable. Covered losses include the following different items:

Value of receivables that cannot be collected
Reasonable costs required to reconstruct lost or damaged records of accounts receivable
Additional collection expenses required when a loss occurs
Interest on loans the named insured must take out to offset the loss of funds during the time the accounts receivable claim is being adjusted and until it is paid

Covered Causes of Loss:

Direct physical loss or damage, except as excluded or limited

Considerations:

This coverage is designed to help the named insured collect payments from clients when documentation has been destroyed. Duplication of records is the major loss prevention activity.

Camera and Musical Instrument Dealers Coverage Form

Coverage:

This coverage form insures camera dealers’ stock and similar or related equipment. It also covers musical instrument dealers’ stock of musical instruments and similar or related equipment and accessories. In both cases, it covers similar property of others in the named insured’s care, custody, or control. It may be written on a reporting or a non-reporting basis.

Covered Causes of Loss:

Direct physical loss or damage, except as excluded or limited

Considerations:

Preventing theft and breakage losses is extremely important because of the value of covered property.

Commercial Articles Coverage Form

Coverage:

This coverage form insures cameras, projection machines, films, and related equipment and accessories. It also covers musical instruments and related equipment and accessories and similar property of others in the named insured's care, custody, or control.

Covered Causes of Loss:

Direct physical loss or damage, except as excluded or limited

Considerations:

Preventing theft and breakage losses is extremely important because of the value of the covered property. Items covered are often in transit and/or off-premises.

Equipment Dealers Coverage Form

Coverage:

This coverage form insures the named insured's stock of merchandise that consists primarily of mobile agricultural and construction equipment along with the similar property of others in the named insured's care, custody, or control. It may be written on a reporting or a non-reporting basis and covers on the named insured's premises inside and outside buildings, in transit, and at other locations.

Covered Causes of Loss:

Direct physical loss or damage, except as excluded or limited

Considerations:

This equipment is often stored in the open because of its size. This requires additional protective measures to prevent theft and vandalism losses.

Film Coverage Form

Coverage:

This coverage form insures exposed motion picture film and its soundtrack or other sound record. It also covers properly recorded magnetic or videotape and its soundtrack or other sound recording. This property must be property the named insured owns or has in its care, custody, or control used in the production listed on the declarations.

Covered Causes of Loss:

Direct physical loss or damage, except as excluded or limited

Considerations:

The property is very mobile and easily damaged. A standard method of keeping track of it is the key to preventing losses.

Related Article: ISO Film Coverage Form Analysis

Floor Plan Coverage Form

Coverage:

This coverage form insures a variety of dealers’ stock and other merchandise financed through banks or other lending institutions. This coverage is unique because that stock or merchandise must be identified as specifically encumbered by the bank or other lending institution.

Covered Causes of Loss:

Direct physical loss or damage, except as excluded or limited

Considerations:

Standard commercial property underwriting applies and is the primary consideration. The named insured must also have an inventory method to keep accurate records of the merchandise financed versus other property not part of the floor plan arrangement.

Related Article: ISO Floor Plan Coverage Form Analysis

Jewelers Block Coverage Form

Coverage:

This coverage form insures jewelers' stock of diamonds, jewels, jewelry, watches, watch movements, and other precious and semi-precious stones. It covers such property held for sale and property sold but not delivered. It also covers semi-precious and precious metals and alloys, such as gold, silver, and platinum. In addition, it covers similar property of others, both in the jewelry trade and not in the jewelry trade, in the named insured’s care, custody, and control.

Covered Causes of Loss:

Direct physical loss or damage, except as excluded or limited

Considerations:

This coverage form is limited to risks with average inventories of $250,000 or less.

Mail Coverage Form

Coverage:

This coverage form insures valuable contents of letters and packages that financial institutions send via First Class Mail, Certified Mail, United States Postal Service Express Mail, or Registered Mail. Coverage is written on a reporting basis. Property is covered while in the government postal service’s care, custody, or control and while in transit by common carrier or messenger to or from the government post office.

Covered Causes of Loss:

Risks of direct physical loss or damage, except as excluded or limited

Considerations:

This coverage form insures only mail sent via the United States Postal Service.

Related Article: ISO Mail Coverage Form Analysis

Physicians and Surgeons Equipment Coverage Form

Coverage:

This coverage form insures medical equipment and surgical instruments that doctors and dentists use. This includes tools, materials, supplies, equipment, and scientific books they usually carry with them from place to place. It also covers similar property of others in their care, custody, or control. Coverage also applies to furniture, fixtures, equipment and, if applicable, tenants’ improvements.

Covered Causes of Loss:

Direct physical loss or damage, except as excluded or limited

Considerations:

Underwriting this coverage form is like underwriting an office exposure with off-premises and transit exposures.

Signs Coverage Form

Coverage:

This coverage form insures the named insured’s signs and similar property of others in its care, custody, or control. It covers property on a scheduled or unscheduled basis.

Covered Causes of Loss:

Direct physical loss or damage, except as excluded or limited

Considerations:

Windstorm and hail are the primary underwriting considerations.

Related Article: ISO Signs Coverage Form Analysis

Theatrical Property Coverage Form

Coverage:

This coverage form insures scenery, costumes, and other theatrical property designed for and used in stage plays and theatrical productions. It includes property of others in the named insured’s care, custody, or control. Coverage can be written on a specific production or on a blanket basis that covers all productions.

Covered Causes of Loss:

Direct physical loss or damage, except as excluded or limited

Considerations:

The property covered is primarily off-premises and/or in transit.

Valuable Papers and Records Coverage Form

Coverage:

This coverage form insures commercial enterprises' business papers. Examples are inscribed, printed or written documents, manuscripts, records, abstracts, books, deeds, drawings, films, maps, and mortgages. Coverage also applies to similar property of others in the named insured’s care, custody, or control.

Covered Causes of Loss:

Direct physical loss or damage, except as excluded or limited

Considerations:

The way items are scheduled is a very important part of providing this coverage.