Commercial Property, Business Income, and Inland Marine
Commercial property
Commercial property is written through the Commercial Package Policy or a monoline form. Key building and personal property concepts: coinsurance (typically 80% or 90%), agreed value (coinsurance waived), blanket versus specific limits, reporting forms with deposit premiums and monthly reporting, and the three causes of loss forms - Basic (named), Broad (named), and Special (open peril).
Business income and extra expense
Business income replaces net income plus continuing normal operating expenses during the period of restoration, which begins 72 hours after physical damage. Extra expense pays costs to continue operations and has no coinsurance. Civil authority coverage is also subject to a 72-hour waiting period. Contingent business income responds to damage at a supplier's or customer's premises. An extended period of indemnity endorsement continues income coverage after repairs are complete.
Inland marine
Inland marine grew from ocean marine and covers property in transit, property of others in your care (bailee coverage), and floaters that follow movable property wherever it goes. The Nationwide Marine Definition determines what qualifies. Common forms include motor truck cargo, bailee's customer goods, builders risk, electronic data processing, and scheduled personal property. Floaters are usually valued or agreed-amount contracts with no coinsurance, and they respond to "mysterious disappearance."
Traps
- Business income is not profits plus payroll for however long the owner likes; it ends when the property could reasonably be repaired.
- Ordinary payroll is often excluded or limited to 90 days.
- Extra expense and business income are separate coverages with separate limits.
Rule of thumb: BI answers "how much income did I lose?"; extra expense answers "how much did it cost me to keep working?"