FEATURES COMMON TO COMMERCIAL PROPERTY FORMS (Excerpt)

Introduction

The Commercial Property Program includes coverage forms for buildings, business personal property, business income and extra expense, builders risk, tobacco warehouses, and leasehold interest. Each policy consists of a coverage part, common policy conditions, common property conditions, and one of the causes of loss forms. It must also include a declarations that provides certain information to identify the insured, along with limits and coverage information.

Common Property Conditions

NO BENEFIT TO BAILEE
A bailee is a person or entity having proper temporary legal custody of property belonging to others. The property owner, or bailor, has entrusted the property to the bailee for a specific purpose, such as safekeeping, repair, renovation, remodeling, processing, delivery or storage. The property owner is expecting to receive the undamaged and possibly improved property back from the bailee. A policy condition specifically states that the bailee has no access to the property owner’s insurance coverage.

PERSONAL EFFECTS AND PROPERTY OF OTHERS
This extension applies only if business personal property is covered on this policy The insured has the option to extend the coverage for its business personal property to apply to personal effects of the insured, officers of the insured’s corporation, partners or employees.

The causes of loss that are available to other business personal property apply except for theft. Coverage can also be extended to personal property of others in the insured’s care, custody or control. All causes of loss that are available to the business personal property apply. The per location limit for this coverage extension is $2,500.