Commercial Property and Inland Marine Coverages
Building and personal property
The Building and Personal Property Coverage Form insures the building, business personal property, and personal property of others at named locations. Key extensions include debris removal, preservation of property, and newly acquired property. Choose causes-of-loss carefully: basic, broad, or special. Blanket limits apply one limit across several locations or categories; specific limits apply separately. Agreed value suspends coinsurance; a margin or inflation guard clause adjusts the limit.
Time-element coverage
Business income pays lost net income plus continuing expenses during the period of restoration, beginning 72 hours after the loss on many forms. Extra expense pays costs to resume operations quickly. Extended period of indemnity continues business income after repairs are complete.
Inland marine
Based on the Nationwide Marine Definition, inland marine covers property in transit, property of others in the insured's care (bailee coverage), and mobile or floating exposures: motor truck cargo, contractors' equipment, fine arts, accounts receivable, valuable papers, installation floaters, and electronic data processing. Floaters usually insure scheduled property on a broad basis without coinsurance. Difference in Conditions (DIC) fills gaps left by standard exclusions such as flood and earthquake.
Reporting forms
Reporting forms require periodic reports of values and charge a deposit premium; the audit at expiration adjusts the premium. Underreporting can trigger a penalty.
Worked example: A retailer with $2,000,000 of stock carries a $1,000,000 blanket limit with an 80% coinsurance clause. Required limit is $1,600,000, so a $200,000 loss pays ($1,000,000/$1,600,000) x $200,000 = $125,000, less deductible.