2008 ISO Commercial Property Changes

1. © Jerome Trupin, Trupin Insurance Services 1 jtrupin@aol.com 914-762-1842 2008 ISO Commercial Property Changes Westchester CPCU Chapter Westchester Community College November 20, 2009 Jerome Trupin, CPCU, CLU, ChFC Trupin Insurance Services Outsourced Risk Management 914-762-1842 jtrupin@aol.com

2. © Jerome Trupin, Trupin Insurance Services 2 jtrupin@aol.com 914-762-1842 Civil Authority Coverage BI Coverage triggered when C A prohibits access to the described premises due to damage within 1 mile of premises Starts 72 hours after damage (can be reduced) Covers for 4 weeks (previously 3 weeks) Time can be increased

3. © Jerome Trupin, Trupin Insurance Services 3 jtrupin@aol.com 914-762-1842 Margin Clause CP 12 32 06 07  End of Blanket Insurance as we Know It? Endorsement limits loss payable on any one building to a stated percentage of value shown on statement of values For example: SOV shows $10,000,000 value on building one. 15% margin clause means that maximum is $11,500,000. If SOV doesn’t show values ins co will determine values before applying %

4. © Jerome Trupin, Trupin Insurance Services 4 jtrupin@aol.com 914-762-1842 Building Glass – Tenant's Policy Form CP 14 70 06 07 Leases make tenant responsible for the plate glass windows or require tenant to insure Are they covered by Your Business Personal Property in CP 00 10? Tenant must be responsible by contract obligated to insure the glass

5. © Jerome Trupin, Trupin Insurance Services 5 jtrupin@aol.com 914-762-1842 Artificially Generated Electrical Current Updated wording Artificially generated electrical, magnetic or electromagnetic energy that damages, disturbs, disrupts or otherwise interferes with: Electrical or electronic wire, device, appliance, system or network; or Device, appliance, system or network utilizing cellular or satellite technology.

6. © Jerome Trupin, Trupin Insurance Services 6 jtrupin@aol.com 914-762-1842 Outdoor signs Limit increased to $2,500 “All risk” coverage applies whether attached or detached Limit can be increased or covered under IM form

7. © Jerome Trupin, Trupin Insurance Services 7 jtrupin@aol.com 914-762-1842 Product Errors Exclusion New Exclusion B.5 LOSS OR DAMAGE TO PRODUCTS in CP 10 30 06 07 (Special Form) Clarifies that error in manufacturing is not covered—insurers thought it never was But if error caused covered-cause-of-loss coverage for that loss is provided

8. © Jerome Trupin, Trupin Insurance Services 8 jtrupin@aol.com 914-762-1842 Utility Services Exclusion Excludes failure originating at premises involving equipment used to supply utility service (power, communication, water, etc.) from a source away from premises. Example: transformer Need CP 15 45 Utility Services--Time Element Specifically excludes damage due to: lack of capacity or reduction in supply. Damage caused by a power surge due to an event causing a failure of power.

9. © Jerome Trupin, Trupin Insurance Services 9 jtrupin@aol.com 914-762-1842 Some Others Party Walls If the other party won’t contribute, insurer will pay in full and subrogate Additional Insured—Managers or Lessors of Premises Business Income—Landlord As An Additional Insured (Rental Value) Fire Department Charges $1,000 limit can be increased

10. © Jerome Trupin, Trupin Insurance Services 10 jtrupin@aol.com 914-762-1842 THANK YOU!! Thanks to our presenters for their work Don’t forget to complete the evaluation forms If you need CE, don’t forget to sign out And, thank you for participating today