The coverage forms and endorsements that the Insurance Services Office (ISO) developed for the Commercial Property Program can be used in either of two ways:
- In a monoline policy that covers only commercial property.
- As the property coverage part of a Commercial Package Policy (CPP) that includes other coverages, such as Commercial General Liability and Crime.
MONOLINE PROPERTY POLICY
Any commercial account that has property exposures that must be insured can use the Commercial Property Program as a stand-alone, monoline Commercial Property Policy. It does not have any limitations or exclusions with respect to eligibility for the Commercial Property Program. The rating basis used and the forms and endorsements available are the same for either the monoline Commercial Property Policy or the CPP.
COMMERCIAL PROPERTY COVERAGE AS PART OF A COMMERCIAL PACKAGE POLICY (CPP)
The CPP has only one eligibility limitation. A property eligible for coverage under a homeowners policy is not eligible for coverage under the CPP.
An account may be eligible for the CPP but still not be eligible to have the Package Modification Factor applied. It is applied only when both commercial property and commercial general liability coverage is provided at the premises. The property at that premises must be written on a Commercial Property Coverage Form at 80% or higher coinsurance (90% coinsurance or higher if coverage is on a blanket insurance basis). A Commercial General Liability Coverage Form that provides at least bodily injury and property damage insurance must cover the same premises.
Even when a premises is eligible for the Package Modification Rating Factor, that factor cannot be applied to any of the following:
- Properties rated under any of these rating plans: Rating Plan for Highly Protected Risks, Schedule for Petroleum Properties, Schedule for Petrochemical Plants, Schedule for Electric Generating Stations or Schedule for Natural Gas Pumping Stations
- Causes of Loss-Earthquake or Earthquake Sprinkler Leakage
- Personal Liability exposures
- Coverage on farms eligible for the Farm Combination Coverage