What Are Commercial Property
Insurance Endorsements?

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What Are Commercial Property Insurance Endorsements?

What Are Commercial Property Insurance Endorsements?

What Are Commercial Property Insurance Endorsements?. A commercial property insurance endorsement can either add, remove or exclude certain coverages. It's a form that becomes part of your insurance policy, altering your policy coverage.

For example, any changes made to the basic policy the commercial insurance carrier files with the state regulators is done by using endorsements. Common changes might include: Changing the business address, adding more coverage, excluding coverage for specific exposures. Commercial Property Endorsements allow you to make these changes - without having to buy another policy or take the chance of having risks go uninsured.

So what are commercial property insurance endorsements? Read on to discover the many types of endorsements available for business property policies.

What are commercial property insurance endorsements? Endorsements modify the basic commercial property program to either add, delete, or exclude certain types of coverage.

COMMERCIAL PROPERTY PROGRAM ENDORSEMENT FORM NUMBERING

So what are commercial property insurance endorsements The ten-digit numbering sequence of ISO forms and endorsements has a very specific meaning.

  • The first two entries are alphabetical characters that indicate the line of insurance involved. For example, CP denotes Commercial Property.
  • The next two digits designate the specific insurance category. Additional detail and information on these categories is in the next section below.
  • The next two digits are the form or endorsement number within the insurance category.
  • The last four digits are the edition date of the form or endorsement expressed in month and year format. These digits are not used in this analysis.

It is arranged by form number and title and includes a brief explanation of the use of each form. It does not include any state specific endorsements.


What AreCP DS-Declaration and Schedules?

The CP DS-Declaration and Schedules are as follows:

CP DS 00-Commercial Property Coverage Part Declarations Page

DS 00-Commercial Property Coverage Part Declarations is an advisory form that ISO developed in 2000. It has not been updated since then. Most insurance companies modify it to meet their specific needs. However, many items remain as ISO placed them because the coverage form refers to them.

The Declarations provides information that relates directly to coverages and claims payments that are unique to them. However, it is designed for single location accounts. A multi-location risk would require a CP DS 01-Commercial Property Coverage Part Supplemental Declarations be attached for each additional location.

CP DS 01-Commercial Property Coverage Part Supplemental Declarations

CP DS 00 has space to enter only one premises. When there are more than one, an advisory supplemental declarations must be added to designate the premises and the coverages, mortgage holders and endorsements that are specific to that scheduled premises.

CP DS 02-Commercial Property Policy Renewal Endorsement

This advisory endorsement is used to renew the policy as is except for the changes noted on the endorsement. Any forms and endorsements that are different from the ones on the expiring policy must be attached.

CP DS 03-Standard Property Policy Renewal Endorsement

The Standard Policy differs from other commercial property coverage forms so it must have its own renewal endorsement.

CP DS 04-Reported-Acquired-Incidental Locations Schedule

This schedule is required whenever CP 13 20-Additional Locations - Special Coinsurance Provisions is attached to the policy.

CP DS 05-Legal Liability Coverage Schedule

When Legal Liability Coverage is provided this advisory schedule is recommended in addition to the CP DS 00.

CP DS 06-Earthquake-Volcanic Eruption Coverage Schedule (Sub-Limit Form)

CP DS 07-Leasehold Interest Coverage Schedule

Unique information must be displayed when leasehold coverage is selected. This advisory schedule provides that necessary information.

CP DS 65-Flood Coverage Schedule

CP 10 65–Flood Coverage Endorsement is an optional causes of loss form. It is important to note that this endorsement does not eliminate the water exclusion in any of the causes of loss forms. It provides very specific coverage. When that coverage conflicts with the exclusion, only that specific part of the exclusion is eliminated.

This endorsement is not a stand-alone causes of loss form. One of the other causes of loss forms, CP 10 10, CP 10 20, or CP 10 30, must also be included.

What Are CP 00-Coverage Forms and Declarations?

The CP 00-Coverage Forms and Declarations are as follows:

CP 00 10-Building and Personal Property Coverage Form

CP 00 17-Condominium Association Coverage Form

One insures condominium associations. The other insures individual commercial condominium unit-owners. Both explicitly refer to condominium bylaws and agreements and the interrelationships between the various parties. This provides maximum flexibility while maintaining the Commercial Property Policy's structure.

CP 00 18-Condominium Commercial Unit-Owners Coverage Form

One insures condominium associations. The other insures individual commercial condominium unit-owners. Both explicitly refer to condominium bylaws and agreements and the interrelationships between the various parties. This provides maximum flexibility while maintaining the Commercial Property Policy's structure.

CP 00 20-Builders Risk Coverage Form

CP 00 30-Business Income (and Extra Expense) Coverage Form

CP 00 32-Business Income (Without Extra Expense) Coverage Form

CP 00 40-Legal Liability Coverage Form

CP 00 50-Extra Expense Coverage Form

CP 00 60-Leasehold Interest Coverage Form

CP 00 80-Tobacco Sales Warehouse Coverage Form

CP 00 90-Commercial Property Conditions

CP 00 99-Standard Property Policy

What Are CP 01-Amendatory Endorsements?

The CP 01-Amendatory Endorsements are as follows:

CP 01 40-Exclusion of Loss Due to Virus or Bacteria

This is a mandatory endorsement in a number of states. It is an absolute exclusion that eliminates all loss or damage caused by disease or illness that causes viruses and microorganisms. Most states use this version of the endorsement, but others may use a different version that has the same title but a different form number. The intent of all versions is similar.

What Are CP 03-Deductible Endorsements?

The CP 03-Deductible Endorsements are as follows:

CP 03 20-Multiple Deductible Form

CP 03 21-Windstorm or Hail Percentage Deductible

CP 03 29-Deductibles by Location

What Are CP 04-Additional Coverage Endorsement?

The CP 04-Additional Coverage Endorsements are as follows:

CP 04 01-Brands and Labels

This endorsement allows the insured to control its labeling. If a loss occurs, the insurance company agrees to settle the claim the way it usually does. The difference lies with any salvage the insurance company plans to distribute. The insurance company allows its salvage potential to be reduced by permitting the insured to stamp "salvage" on the property and to remove the labels. In addition, the insured is reimbursed for its expenses to do so. A higher limit of insurance may be needed to cover the insured's expenses to stamp and remove labels.

CP 04 02-Increased Cost of Loss and Related Expenses for Green Upgrades

This endorsement allows the insured to anticipate replacing existing non-green construction with green construction following a loss. A percentage of the limit of insurance must be entered on the endorsement schedule, along with the maximum limit to be paid for such upgrades. In addition, business income coverage period of restoration can be extended for the additional time needed for such upgrades. Changes made in the 10 12 edition mesh with changes in CP 00 10 to add flexibility in scheduling on the endorsement and to address deductible concerns.

CP 04 04-Specified Business Personal Property Temporarily Away from Premises

The property temporarily off premises must be described and a limit for it entered on the endorsement schedule. Temporarily is not defined. The named insured or an employee authorized to have the property must have care, custody, or control of it. Property is covered at exhibitions, trade shows, in transit, and other locations within the coverage territory but not while in the air or on the water.

This endorsement does not cover salespersons samples except when at exhibitions or trade shows.

CP 04 05-Ordinance or Law Coverage

CP 04 07-Pollutant Clean Up and Removal Additional Aggregate Limit of Insurance

This endorsement is unusual because instead of replacing the limit for Pollution Clean Up Aggregate in the coverage form it provides a limit to be added to that aggregate. It also introduces a deductible.

CP 04 08-Higher Limits

This endorsement is available to increase Coverage Extensions, Additional Coverage, and Theft Limitations limits in the coverage form. Any limit entered replaces the existing limit within the coverage form. It is not added to the existing limit. It can be used only if the coverage form states that the limit can be increased.

CP 04 09-Increase in Rebuilding Expenses Following Disaster (Additional Expense Coverage on Annual Aggregate Basis)

The cost to repair a house damaged during a disaster is often much more than if the same damage occurred in normal time. This endorsement permits an insured to schedule a higher limit for such expenses in anticipation of such a need.

CP 04 10-Electrical Apparatus

This coverage form is mandatory on policies that cover public service light, power, and utility property. It modifies the artificially generated exclusion in the causes of loss form by expanding the exception for resulting fire to resulting fire, explosion, or electricity to covered property electrical apparatus. This endorsement includes a $1,000 minimum deductible.

CP 04 11-Protective Safeguards

This endorsement applies only for the fire cause of loss and replaces IL 04 15. It is required when the insurance company provides a premium credit because of any listed protective safeguard. This endorsement lists and describes the various scheduled services or protective safeguards on the insured's premises and requires that the insured keep them in working order which includes being maintained in an "on" position. Protective safeguards are identified by symbol for automatic sprinkler systems, automatic fire alarms, security services, and service contracts with private fire departments.

Important Note: This is a warranty. If a fire loss occurs and the described systems are not in proper working order at the time, the insurance company will not pay for the loss.

CP 04 14-Limited Coverage for Unmanned Aircraft (Scheduled and/or Blanket Coverage)

Unmanned aircraft that are used off premises are considered Property Not Covered unless this endorsement is attached. The aircraft must be described with a scheduled limit of insurance. Valuation can be either ACV or RCV. Coverage can be blanketed. Business income and extra expense coverages can be purchased. This is available only with CP 10 30-Causes of Loss-Special Form. An important limitation is that coverage does not apply when the aircraft is used to deliver goods to others.

CP 04 15-Debris Removal Additional Insurance

This endorsement replaces the debris removal limit in the coverage form with the limit on the endorsement schedule. The limit may apply to only specific premises or specific buildings. The revised limit must be higher than $25,000.

CP 04 17-Utility Services-Direct Damage

CP 04 18-Condominium Commercial Unit-owners Optional Coverages

(Use with CP 00 18 and CP 00 99)

CP 04 25-Newly Acquired or Constructed Property-Increased Limit

This endorsement increases the $250,000 automatic limit of insurance in the coverage extension for newly acquired or constructed buildings to the limit entered on the endorsement schedule.

CP 04 26-Ordinance of Law Coverage for Tenants Interest in Improvements and Betterments (Tenant's Policy)

CP 04 30-Electronic Commerce (E-Commerce)

CP 04 31-Changes-Fungus, Wet Rot, Dry Rot, and Bacteria

This endorsement replaces the $15,000 limit for Additional Coverage-Limited Coverage for Fungus, Wet Rot, Dry Rot and Bacteria in any of the causes of loss forms with the limit on the endorsement schedule. The limit can apply per location.

CP 04 32-Business Personal Property Limited International Coverage

This endorsement broadens the coverage territory. Your Personal Property coverage is extended to the listed foreign territory/territories while the property is in transit to, while in, and in transit from it/them. This coverage is for U.S. based operations that send employees or management personnel overseas for short periods of time to present and/or exhibit products.

CP 04 33-Property in Process of Manufacture by Others Limited International Coverage

This endorsement covers the insured's raw material, stock in process, and finished products while temporarily at a non-owned location in the foreign territory on the endorsement schedule. This is coverage for property on premises, not transit coverage. Because this is temporary coverage, there is no coverage if the stock is kept at the foreign location to be sold.

CP 04 38-Functional Building Valuation

CP 04 39-Functional Personal Property Valuation Other Than Stock

CP 04 40-Spoilage Coverage

This endorsement extends coverage to include spoilage of perishable stock within the building at the described premises. The insured must own the stock, or the stock must be in its care, custody, or control. The spoilage can be caused by power outage and/or breakdown/contamination.

CP 04 50-Vacancy Permit

CP 04 60-Vacancy Changes

What Are CP 10-Causes of Loss Endorsements?

The CP 10-Causes of Loss Endorsements are as follows:

CP 10 10-Causes of Loss-Basic Form

CP 10 20-Causes of Loss-Broad Form

CP 10 28-Earthquake and Volcanic Eruption Coverage with Flat-Dollar Deductible

CP 10 29-Earthquake and Volcanic Eruption Coverage (Sub-Limit Form with Flat-Dollar Deductible)

CP 10 30-Causes of Loss-Special Form

CP 10 33-Theft Exclusion

(Use with CP 10 30)

This endorsement restricts coverage. It allows the named insured to have all the advantages of the causes of loss-special form without paying the price for theft coverage. It may be used as an underwriting tool, as a cost savings device, or to prevent duplicate coverage because an inland marine coverage form provides theft coverage. It excludes all theft losses except those that occur during looting that accompanies a riot. Coverage also applies to loss or damage caused by or that results from burglars attempting to enter or exit the premises. The 10 12 edition adds an endorsement schedule.

CP 10 34-Exclusion of Loss Due to By-Products of Production or Processing Operations (Rental Properties)

A tenant's operations may produce vapor, gas, smoke, or other substances as a regular part of production. In such cases, this endorsement can be added to the property owner's coverage form to exclude any damage those releases cause. Examples of such releases are meth-house situations, grease residue, and other legal or illegal substances. This applies to only the buildings and locations on the endorsement schedule.

CP 10 35-Watercraft Exclusion

(Use with CP 10 30)

This endorsement excludes loss or damage to retaining walls, bulkheads, pilings, piers, wharves, and docks struck by a watercraft. It is mandatory only if such waterfront property has been added to the coverage using CP 14 10-Additional Property.

CP 10 36-Limitations on Coverage for Roof Surfacing

This endorsement restricts coverage. It contains two potential limitations. The first changes valuation on roofs from replacement cost to actual cash value. The second excludes loss or damage by wind or hail to the roof that is considered only superficial or cosmetic. The premises must be scheduled along with the limitation selection(s).

CP 10 37-Radioactive Contamination

This endorsement adds limited or broad radiation coverage to the property and/or income on the endorsement schedule. The limited coverage provides coverage only if another cause of loss triggers the contamination. The broad coverage does not require that another cause of loss be involved.

CP 10 38-Discharge from Sewer, Drain, or Sump (Not Flood-related)

This endorsement provides coverage for direct damage and/or business income coverage from a sewer, drain, sump water, or waterborne discharge. The discharge cannot be the result of a flood. A limit must be entered that may or may not be subject to an annual aggregate based on entries on the endorsement schedule.

CP 11 05-Builders Risk Reporting Form

CP 11 06-Builders Risk Premium Adjustment Form

This form is used to report the monthly property values at risk that CP 11 05-Builders Risk Reporting Form insures.

CP 11 13-Builders Risk Renovations

CP 11 14-Builders Risk-Separate or Sub-Contractors Exclusion

CP 11 15-Builders Risk-Separate or Sub-Contractors Coverage

CP 11 20-Builders Risk-Collapse During Construction

CP 11 21-Builders Risk-Theft of Building Materials, Fixtures, Machinery, Equipment

CP 11 99-Builders Risk Changes-Standard Property Policy

This endorsement must be used whenever builders risk coverage is purchased in connection with CP 00 99-Standard Property Policy. It provides the necessary changes to that policy to complete the builders risk coverage.

CP 10 40-Earthquake and Volcanic Eruption Coverage With Percentage Deductible

CP 10 41-Earthquake Inception Extension

CP 10 44-Theft of Building Materials and Supplies (Other than Builders Risk)

(Use with CP 10 30)

Building materials intended to become part of the named insured's building are covered for theft when this endorsement is used. However, the coverage is subject to the limit and the deductible on the endorsement schedule. This endorsement is needed because theft coverage under CP 10 30 does not apply to this property.

CP 10 45-Earthquake and Volcanic Eruption Coverage (Sub-limit Form with Percentage Deductible)

CP 10 46-Equipment Breakdown Cause of Loss

(Use with CP 10 30)

CP 10 47-Suspension or Reinstatement of Coverage for Loss Caused by Breakdown of Certain Equipment

CP 10 51-Grain Properties-Explosion Limitation

(Use with CP 10 10, CP 10 20, and CP 00 99)

This endorsement restricts coverage. It is mandatory when covering grain properties. It excludes coverage under the explosion cause of loss for any explosion due to changes in temperature.

CP 10 52-Broken or Cracked Glass Exclusion Form

This endorsement excludes loss or damage that is the result of existing breaks or cracks listed and described on the endorsement schedule.

CP 10 54-Windstorm or Hail Exclusion

This endorsement excludes windstorm and hail as covered causes of loss at the locations listed on the endorsement schedule.

CP 10 55-Vandalism Exclusion

This endorsement excludes vandalism as a covered cause of loss at the locations listed on the endorsement schedule.

CP 10 56-Sprinkler Leakage Exclusion

This endorsement excludes sprinkler leakage as a covered cause of loss at the locations listed on the endorsement schedule.

CP 10 60-Molten Material

(Use with CP 10 10, CP 10 20, and CP 00 99)

This endorsement adds Molten Material as a covered cause of loss. This means that loss of damage caused by molten material accidently discharged from equipment is covered.

CP 10 65-Flood Coverage Endorsement

CP 10 70-Pier and Wharf Additional Covered Causes of Loss

(Use with CP 10 10, CP 10 20, and CP 00 99)

This endorsement covers damage to piers and wharves. It should be used only if piers and wharves have been added as covered property using CP 14 10-Additional Covered Property. This additional cause of loss is for damage caused by floating ice as well as if a vessel or floating object collides with the pier or wharf.

What Are CP 11-Builders Risk Endorsements?

The CP 11-Builders Risk Endorsements are as follows:

CP 11 05-Builders Risk Reporting Form

CP 11 06-Builders Risk Premium Adjustment Form

This form is used to report the monthly property values at risk that CP 11 05-Builders Risk Reporting Form insures.

CP 11 13-Builders Risk Renovations

CP 11 14-Builders Risk-Separate or Sub-Contractors Exclusion

CP 11 15-Builders Risk-Separate or Sub-Contractors Coverage

CP 11 20-Builders Risk-Collapse During Construction

CP 11 21-Builders Risk-Theft of Building Materials, Fixtures, Machinery, Equipment

CP 11 99-Builders Risk Changes-Standard Property Policy

This endorsement must be used whenever builders risk coverage is purchased in connection with CP 00 99-Standard Property Policy. It provides the necessary changes to that policy to complete the builders risk coverage.

What Are CP 12-General Endorsements?

The CP 12-General Endorsements are as follows:

CP 12 01-Commercial Property Coverage Part Policy Changes

This general-purpose endorsement is used to list and summarize endorsement and premium changes to a commercial property coverage form or policy.

CP 12 11-Burglary and Robbery Protective Safeguards

This endorsement applies only for the theft cause of loss. It excludes all coverage for theft if at the time of the loss, the scheduled burglary and robbery protective safeguards are not in working order. In working order includes that the system be turned on and active during non-work hours and while the premises is not occupied.

Important: This is a warranty that voids theft coverage if the described systems are not in working order at the time of loss.

CP 12 18-Loss Payable Provisions

This endorsement is used to provide the names and addresses of loss payees, lender's loss payees, or the interests involved in a contract of sale. The named insured's building owner can be listed on this endorsement when the named insured is a tenant. Its language explains the terms and conditions of coverage for the various insurable interests but does not extend coverage beyond the loss payee's financial interest or the policy limit. The 10 12 edition has minor editorial changes that do not affect coverage.

Note: A building owner that is listed on CP 12 19-Additional Insured-Building Owner cannot also be listed on this endorsement on the same policy.

CP 12 19-Additional Insured-Building Owner

This endorsement is available when the named insured is a tenant. It adds the building owner as a named insured but only for direct physical loss or damage to the building listed on the endorsement schedule. It cannot be attached if the building owner is named as a loss payee under CP 12 18-Loss Payable Provisions.

CP 12 30-Peak Season Limit of Insurance

CP 12 32-Limitation on Loss Settlement-Blanket Insurance (Margin Clause)

CP 12 70-Joint or Disputed Loss Agreement

This endorsement should be attached when property covered under the commercial property coverage form is also covered under a boiler and machinery or equipment breakdown coverage form. It is especially important when different carriers provide the property and equipment breakdown coverage. It details how a loss that potentially involve both coverage forms are to be settled. The intent of the endorsement is to compensate the named insured promptly and to encourage the carriers providing the coverages to resolve the coverage dispute without delaying the insured's settlement.

What Are CP 13-Value Reporting Form and Related Endorsements?

The CP 13-Value Reporting Form and Related Endorsements are as follows:

CP 13 10-Value Reporting Form

CP 13 20-Additional Locations-Special Coinsurance Provisions

This endorsement is used only for risks subject to the multiple location average rating technique. It extends coverage to reported, acquired, and incidental locations. It adds a coinsurance provision that applies solely to such locations. CP DS 04-Reported-Acquired-Incidental Locations Schedule must be attached to show the applicable limits.

CP 13 30-Agricultural Products Storage

This endorsement is used only if CP 13 10-Value Reporting Form is also attached. It is intended to provide coverage for grain, hay, straw, and other crops harvested and stored in the open. Storage can be on premises or off premises. However, coverage does not apply to such property while in transit or at fairs.

This endorsement also addresses ownership and valuation issues that are unique to this type of property.

CP 13 60-Report of Values

This form is used to submit periodic reports of value to the insurance company. It is required when CP 13 10-Value Reporting Form is part of the coverage form or policy.

CP 13 61-Supplemental Report of Values

This form is used when there are more locations than can be listed on CP 13 60-Report of Values.

CP 13 70-Multiple Location/Premium and Dispersion Credit Application

This application is used to request that ISO develop the Multiple Location Premium and Dispersion Credit for the specific risk.

What Are CP 14-Additional Covered Property and Property Not Covered?

The CP 14-Additional Covered Property and Property Not Covered are as follows:

CP 14 01-Scheduled Building Property - Tenant's Policy

When the named insured is a tenant and is contractually obligated to insure building property this endorsement can be attached. It provides coverage for described glass and/or other types of scheduled building property. A valuation and deductible must be selected.

Note: This replaces CP 14 70-Building Glass-Tenant's Policy.

CP 14 02-Unscheduled Building Property - Tenant's Policy

This endorsement is identical to CP 14 01 except that all glass is blanketed at a single limit without description and the other types of building property coverage is blanketed with its own limit.

Note: This is not the same as Improvements and Betterments coverage.

CP 14 10-Additional Covered Property

Property described on this endorsement's schedule is moved from Property Not Covered to Property Covered. It must be completed very carefully and specifically because of the impact it has on both coverage and coinsurance. It is extremely important to add the value of the property back into the building or personal property limits in order to avoid underinsurance and coinsurance problems.

Note: Some examples of property that can be included by scheduling them on this endorsement include the cost of excavations, foundations, underground pipes, pilings, fences, retaining walls, bridges, vehicles, self-propelled machines, and animals.

CP 14 15-Additional Building Property

This endorsement is used to transfer business personal property to building property. An example is machinery and equipment that is permanently installed. This can save premium because building property has a lower rate. The building limits must be increased for the additional items and the business personal property limits reduced.

CP 14 20-Additional Property Not Covered

This endorsement can be used to customize coverage in many situations. It allows an insured to eliminate property it does not wish to insure. Some examples of property that can be listed are awnings, chimneys, crop silos (and their contents), swimming pools, waterwheels, value of improvements, alterations, and repairs, personal property in safes and vaults, glass, metal, ores, gravel, property of others, signs, vending machines, and stock. This endorsement must be used very carefully and with the insured's full knowledge because it eliminates coverage. The description of the excluded property on the endorsement schedule must be very specific.

Note: The use of this endorsement should be revisited every renewal and a signed approval from the insured obtained.

CP 14 30-Outdoor Trees, Shrubs and Plants

This endorsement broadens the limited coverage provided for trees, shrubs, and plants. Coverage is customized with a limit for all items, subject to a sub-limit per item. The causes of loss form that applies to the coverage form may or may not apply to this endorsement based on entries on the endorsement schedule. The insured has the option to exclude vehicles as a covered peril. The property's value must include debris removal expense because debris removal is part of the coverage. As a result, no additional amount is available to pay for it.

CP 14 40-Outdoor Signs

Commercial property coverage forms cover all outdoor signs for up to a $2,500 per sign limit. This endorsement replaces the $2,500 limit for the sign(s) listed on the endorsement schedule with the revised limit, subject to the coinsurance percentage for that sign.

CP 14 50-Radio or Television Antennas

This endorsement transfers scheduled radio or television antennas (including satellite dishes, their lead-in wiring, and masts or towers) from Property Not Covered to Property Covered. The property is subject to the limits, coinsurance, and causes of loss on the endorsement schedule.

CP 14 60-Leased Property

Leased property in the insured's care, custody, or control that it is contractually required to insure is considered part of Business Personal Property coverage.

This endorsement provides the insured the option to specifically schedule such leased personal property of others and to do so on an agreed value basis as an option.

What Are CP 15-Time Element Endorsements?

The CP 15-Time Element Endorsements are as follows:

CP 15 01-Business Income from Dependent Properties Limited International Coverage

CP 15 02-Extra Expense from Dependent Properties Limited International Coverage

CP 15 03-Business Income-Landlord as Additional Insured (Rental Value)

This endorsement is used to meet a tenant's contractual obligation to provide coverage for the landlord's rental value. The limit, business income coverage form number, coinsurance, and causes of loss form that applies must be entered on the endorsement schedule. The tenant is not required to carry any other type of business income coverage.

CP 15 04-Discretionary Payroll Expense

This endorsement includes payroll expenses for the listed job classifications or employees without requiring that they be necessary for operations to resume. An option is available to limit coverage to a maximum number of days.

CP 15 05-Food Contamination (Business Interruption and Extra Expense)

This endorsement provides extra expense payments for the clean-up following closure by a government authority. It also covers advertising to restore the business's reputation, loss of income, replacement of contaminated food and employee vaccinations that are related to the closure.

CP 15 06-Off-premises Interruption of Business - Vehicles and Mobile Equipment

Businesses that depend on mobile equipment or vehicles to sustain their operations can purchase this endorsement. Extra expenses and loss of business income coverage is provided when the scheduled equipment and/or vehicles are damaged by a covered cause of loss.

CP 15 07-Expanded Limits on Loss Payment

This endorsement customizes the extra expense period of restoration. The number of time periods and the percentages that apply to each time period can be modified to suit a specific operation's needs.

CP 15 08-Business Income from Dependent Properties-Broad Form

CP 15 09-Business Income from Dependent Properties-Limited Form

CP 15 10-Payroll Limitation or Exclusion

This endorsement allows the insured to completely exclude payroll expenses for selected groups of employees. The expenses may be totally excluded or be limited to only a selected number of days. The 10 12 edition eliminates the term "ordinary payroll." It also increases flexibility by introducing scheduling options. This approach means that the insured can carry a lower limit of insurance in return for a premium surcharge.

CP 15 11-Power, Heat, and Refrigeration Deduction

This endorsement excludes the costs of power, heat, or refrigeration used in production operations from continuing business expenses. If utility obligations do not continue after a loss, the insured might include this endorsement and deduct the cost of power, heat, and refrigeration from its business income limit of insurance. This approach means that the insured can carry a lower limit of insurance in return for a premium surcharge, but the result is usually a lower net premium.

CP 15 13-Seasonal Leases-Monthly Limits on Loss Payment

This endorsement recognizes that many rental properties are seasonal. Coverage applies only for the months and limits entered in the spaces provided on the endorsement schedule. Coverage applies if the named insured occupies the property or rents it to others.

CP 15 15-Business Income Report/Work Sheet

CP 15 20-Business Income Premium Adjustment

CP 15 24-Mining Properties-Business Income

CP 15 25-Business Income Changes-Educational Institutions

CP 15 29-Electronic Media and Records

This endorsement was withdrawn with the 04 02 edition.

CP 15 31-Ordinance or Law-Increased Period of Restoration

CP 15 32-Civil Authority Changes

CP 15 34-Extra Expense from Dependent Properties

CP 15 45-Utility Services-Time Element

CP 15 50-Radio or Television Antennas-Business Income or Extra Expense

Business income coverage forms exclude loss of income due to damage to radio or television antennas. This endorsement eliminates that exclusion. The 10 12 edition has minor editorial changes that do not affect coverage.

CP 15 56-Business Income Changes-Beginning of the Period of Restoration

CP 15 57-Business Income and/or Extra Expense Coverage for Year 2000 Computer-Related and Other Electronic Problems

This endorsement can be added only if IL 09 35-Exclusion of Certain Computer-Related Losses is attached. It softens that exclusion by providing an annual aggregate of $25,000 for such computer-related losses.

CP 17-Standard Property Policy Condominium Endorsements?

The CP 17-Standard Property Policy Condominium Endorsements are as follows:

CP 17 98-Condominium Commercial Unit-owners Changes-Standard Property Policy

(Use with CP 00 99)

This endorsement modifies the coverage form for the unique aspects of condominium ownership. It is mandatory any time a condominium unit-owner is a named insured. The 10 12 edition introduces changes that mesh with changes in CP 00 99.

CP 17 99-Condominium Association Changes-Standard Property Policy

(Use with CP 00 99)

This endorsement modifies the coverage form for the unique aspects of condominium ownership. It is mandatory any time a condominium association is a named insured. The 10 12 edition introduces changes that mesh with changes in CP 00 99.

What Are CP 19-Supplemental Schedules?

The CP 19-Supplemental Schedules are as follows:

CP 19 10-Your Business Personal Property-Separation of Coverage

This endorsement allows the insured to schedule different types of business personal property at a location with different limits, coinsurance, and causes of loss. This should be used very carefully because of its potential impact on a loss settlement. If used, the values should be evaluated regularly because of potential underinsurance problems.

What Are CP 60-Leasehold Interest Factor Tables?

The CP 60-Leasehold Interest Factor Tables are as follows:

Each of these endorsements provides supplementary information to be used with CP 00 60-Leasehold Interest Coverage Form. Each contains a schedule of factors at the stated percentage for use with the form.

CP 60 05-Leasehold Interest Factors For 5.0%

CP 60 06-Leasehold Interest Factors For 6.0%

CP 60 07-Leasehold Interest Factors For 7.0%

CP 60 08-Leasehold Interest Factors For 8.0%

CP 60 09-Leasehold Interest Factors For 9.0%

CP 60 10-Leasehold Interest Factors For 10.0%

CP 60 11-Leasehold Interest Factors For 11.0%

CP 60 12-Leasehold Interest Factors For 12.0%

CP 60 13-Leasehold Interest Factors For 13.0%

CP 60 14-Leasehold Interest Factors For 14.0%

CP 60 15-Leasehold Interest Factors For 15.0%

What Are CP 99-Miscellaneous Endorsements?

The CP 99-Miscellaneous Endorsements are as follows:

CP 99 02-Manufacturers' Consequential Loss Assumption

When stock in process is damaged, the value of undamaged stock also in process is reduced because of its relationship to the damaged stock. This endorsement pays the resulting loss of value to undamaged stock in process.

Example: A furniture manufacturer has a fire at its facility. The section where the tables are manufactured is destroyed but the section where the chairs are manufactured is undamaged. The value of the chairs is reduced because they must be sold as singles instead as part of a complete set. That reduction in value is not covered if this endorsement is not attached.

CP 99 05-Distilled Spirits and Wines Market Value

CP 99 10-Alcoholic Beverages Tax Exclusion

CP 99 20-Contributing Insurance

If more than one carrier provides the named insured's property coverage, this endorsement is used to state the percentage of coverage the carrier provides. The total limits for each listed location's buildings, business personal property, personal property of others, business income, and other specific additional coverages must be scheduled.

CP 99 30-Manufacturers' Selling Price (Finished "Stock" Only)

This endorsement modifies the valuation loss condition for stock. When it is attached, instead of requiring that stock be sold in order to be valued at selling price, the stock must only be manufactured and considered finished. The business personal property limit must reflect this type of valuation or underinsurance may result in a coinsurance penalty.

CP 99 31-Market Value-Stock

This endorsement modifies the valuation loss condition in the coverage form for stock. The value of stock is based on its market value at the time and place of any covered loss or damage, reduced by all discounts and expenses that normally apply. This might be used with the type of stock bought and sold at an established market exchange where market prices are posted and quoted. Some examples are certain commodities traded on the market, such as grains, coffee, concentrated orange juice, cotton, and pork bellies. The value of the business personal property must reflect this type of valuation or there may be a coinsurance penalty due to underinsurance when this endorsement is used.

CP 99 42-Storage or Repairs Limited Liability

This endorsement modifies the valuation loss condition in the coverage form for personal property of others the insured holds in storage or for repairs. Its value is changed to the lesser of actual cash value or the value on the receipt.

CP 99 92-Household Personal Property Coverage

This endorsement adds household personal property to the definition of covered property in the property coverage form but only for the location and limit on the endorsement schedule. It defines household personal property and includes a provision that 10% of the limit can be applied to such property when it is away from the described premises.

CP 99 93-Tentative Rate

This endorsement explains that the premium charged at inception is based on preliminary tentative rates and that it will be adjusted when final rates are available. It is attached when ISO plans to publish a new or revised rate that is not yet available when the policy is issued.

What Are IL-Interline Forms and Endorsements?

The IL-Interline Forms and Endorsements are as follows:

IL 00 03-Calculation of Premium

This endorsement is used on multi-year or continuous policies to inform the insured that the premiums are subject to annual review, re-rating, and adjustment.

IL 00 17-Common Policy Conditions

IL 00 30-Exclusion of Terrorism

IL 00 31-Exclusion of Terrorism Involving Nuclear, Biological, or Chemical Terrorism

IL 00 32-Limitation for Terrorism-Sub-limit on Annual Aggregate Basis

IL 04 15-Protective Safeguards

This endorsement is withdrawn with the 10 12 edition and replaced by CP 04 11-Protective Safeguards.

IL 09 35-Exclusion of Certain Computer-Related Losses

This endorsement eliminates coverage for losses that occur because a computer is unable to recognize a date and similar computer-related losses.

IL 09 52-Caps on Losses from Certified Acts of Terrorism

IL 09 53-Exclusion of Certified Acts of Terrorism

IL 09 86-Exclusion of Certified Acts of Terrorism Involving Nuclear, Biological, Chemical, or Biological Terrorism; Cap on Losses from Certified Acts of Terrorism

IL 09 87-Limitation of Coverage for Certified Acts of Terrorism

(Sub-limit on Annual Aggregate Basis)

IL 09 95-Conditional Exclusion of Terrorism

(Relating to Disposition of Federal Terrorism Risk Insurance Act)

IL 09 96-Conditional Exclusion of Terrorism Involving Nuclear, Biological, or Chemical Terrorism

(Relating to Disposition of Federal Terrorism Risk Insurance Act)

IL 09 97-Conditional Limitation of Coverage for Terrorism-Sub-limit on Annual Aggregate Basis

(Relating to Disposition of Federal Terrorism Risk Insurance Act)

What Are Commercial Property Insurance Endorsements? - The Bottom Line

What are commercial property insurance endorsements? An endorsement alters the Commercial Property Program policy and becomes part of your commercial insurance agreement, and it remains in force until the contract term expires.

The only exception to the above rule is if the commercial property endorsement has a specific or limited term to which the endorsement is valid. It may renew under the same terms and conditions of the rest of your policy.

Additional Commercial Insurance Endorsements Information

Learn about small business commercial endorsements that add, remove, or change your policy's coverage by altering the standardized coverage form.


Commercial Insurance Endorsements

So commercial insurance endorsements allow you to customize your policy to better fit your business insurance needs without having to buy a new policy.

So business insurance endorsements can either modify the basic policy by removing coverages that you don’t need, or remove one or more exclusions, adding those coverages back into the policy.

There are many types of commercial insurance endorsements - and while some favor the insurer (by excluding coverage) and some benefit the insured (by adding coverage), below is a list of some of the most common uses for business insurance endorsements:


  • Additional Insured: This is one of the most common endorsements that adds someone other than you to your insurance policy. It is typically required by some sort of contract. Common additional insureds are landlords, general contractors, vendors or customers.
  • Administrative Changes: Newly issued policies can include mistypes, misspellings, or missing words altogether. To correct these errors, the insurer would add an endorsement, rather then having to cancel and issue a new policy. If a policyholder changes their name, an endorsement would reflect that too.
  • Changing Or Adding Addresses: This endorsement covers any change to the insured's property like moving your office to a new location, or expanding to a another location.
  • Deductible Changes: This endorsement manages who can change your deductible as well as when and how much it can be changed.
  • Increased Limits: Occasionally companies need to add endorsements to increase the limits of insurance. For example, you'd use an endorsement to extend workers' compensation benefits not covered by state law. Or, to get a contract you need higher limits on your general liability policy.

Making a policy change usually affects your insurance premium. Anytime coverage is altered there is likely a cost associated with how the policy premium is calculated. Adding coverage usually makes the premium increase, while excluding coverage can reduce the premium you pay.


Types Of Small Business Insurance - Requirements & Regulations

Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.

Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.

Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.

Small Business Information

Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.

Small Business Insurance Information

In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.

The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.

According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.

Types Of Small Business Insurance

Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:

  • What type of business am I running?
  • What are common risks associated with this industry?
  • Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
  • Does my state require me to carry this type of insurance?
  • Does my lender or do any of my investors require me to carry this type of policy?

A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:

Business Insurance Policy Type What Is Covered?
General Liability InsuranceWhat is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.
Workers Compensation InsuranceWhat is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.
Product Liability InsuranceWhat is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.
Commercial Property InsuranceWhat is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.
Business Owners Policy (BOP)What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.
Commercial Auto InsuranceWhat is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.
Commercial Umbrella PoliciesWhat is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.
Liquor Liability InsuranceWhat is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.
Professional Liability (Errors & Omissions)What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.
Surety BondWhat is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).


Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.

Business Insurance Required by Law
Small Business Commercial Insurance

If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.

Your insurance agent can help you check applicable state laws so you can bring your business into compliance.

Other Types Of Small Business Insurance

There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:

  • Business Interruption Insurance
  • Commercial Flood Insurance
  • Contractor's Insurance
  • Cyber Liability
  • Data Breach
  • Directors and Officers
  • Employment Practices Liability
  • Environmental or Pollution Liability
  • Management Liability
  • Sexual Misconduct Liability

Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.

Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.

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