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Endorsements

Commercial insurers have increasingly incorporated provisions into their coverage forms and/or endorsements that can create significant coverage gaps when property is insured on a blanket basis. The use of a margin clause places a cap on how much an Agreed Value option will pay on a blanket policy. In addition, a margin clause also functions with coinsurance, where applicable. This article explains the danger with real life, tangible examples.
An agent asks, 'I'm quoting a tank fabrication operation. They manufacture large metal tanks at their facility, transport the tanks to the customer’s location, and install them. The current agent includes business income coverage, but I think there is still a gap if these very expensive completed tanks are destroyed while still at the insured’s location awaiting transport and installation. Am I right and is there a solution?'
The insured is an incorporated consulting firm. The president personally owns the building and rents it to his firm without a written lease agreement. Is the CG 20 11 sufficient to protect him for the premises liability exposure, and is a loss payee for his benefit sufficient for his property ownership? He wants to handle things this way, without carrying insurance in his own name. Are there any gaps or problems with this approach?
Sometimes a third party wants to be added as a named insured on a property policy, but the insurer refuses. As an alternative, the party elects to be named as a loss payee. ISO and carriers may have options for naming such parties as loss payees or covering them under a lenders loss payable clause. Which is better?
Blanket insurance is often the most effective and safest way to write property insurance on risks with multiple locations. Since the limit can be applied to any location, it lessens the likelihood of inadequate insurance due to fluctuating values. However, there appears to be an increasing use of margin clauses that limit coverage at a specific location to a percentage of the statement of values entry for that location. Here's why you should be concerned....
Following a brief history of the Terrorism Risk Insurance Act (TRIA), this article provides a complete listing to date of all the ISO terrorism endorsements, along with links to other useful sources of TRIA information and/or updates. Included are samples of the actual forms and descriptions of the original 2002 editions.