ISO Commercial Property Program-Building And Personal Property Coverage Form Exposure Analysis Checklist

ISO COMMERCIAL PROPERTY PROGRAM–BUILDING AND PERSONAL

PROPERTY COVERAGE FORM EXPOSURE ANALYSIS CHECKLIST

(June 2022)

This checklist is designed to assist in beginning the building and personal property coverage analysis. This is

only a starting point, and additional risk specific questions may arise as the exposures are developed. This

analysis should be combined with exposure analysis checklists for other coverages to develop a complete

picture of the insured’s operations.

This checklist is designed to supplement the ACORD application.

A list of endorsements may be helpful as you discuss exposures with your client.

Commercial Property Program Available Endorsements and Their Uses

Commercial Property Program Endorsements Checklist

GENERAL INFORMATION

Legal business name(s)

____________________________________________________________________________________

Mailing address:

____________________________________________________________________________________

Type of entity:

___ Individual	___ Corporation	___ Sub-S Corp.
___ Partnership	___ Joint Venture
___ Not-for-profit	___ Limited Liability Company

SIC Code(s): _________________________________________________________________________

NAICS Code(s):_______________________________________________________________________

Federal ID Number: ____________________________

When did the applicant start business operations? ___________________________________________

When did the present management assume control? _________________________________________

How many years experience does the owner have in this type of business? _______________________

How many years experience does the manager have in this type of business? _____________________

Has the applicant ever been involved in a bankruptcy procedure? ___ Yes ___ No

If yes, explain including the type of bankruptcy, the filing date, and the resolution.

____________________________________________________________________________________

Names of subsidiary companies or joint ventures that are not part of this application:

____________________________________________________________________________________

Important People	Name	Phone Number
Owner/Principal:	_______________________________	______________
Other Decision Makers:	_______________________________	______________
Plant and Grounds:	_______________________________	______________
Financial:	_______________________________	______________
Legal:	_______________________________	______________
Claims:	_______________________________	______________

The applicant’s primary operations are:

____________________________________________________________________________________

The applicant’s secondary and incidental operations are:

____________________________________________________________________________________

The applicant used to be involved in the following operations, but they have been discontinued:

____________________________________________________________________________________

The hours of operations are: _____________________________________________________________

How many days per week is the applicant open? ___

Is this a seasonal operation? ___ Yes ___ No

If yes, what is the season? From _____________ to _____________

Does the applicant have a safety program? ___ Yes ___ No

If yes, answer the following:

Name of safety director: _________________________________________________________

Safety director phone number: __________________________________________________

Safety director email address: ____________________________________________________

Attach a copy of the safety program.

Does the applicant have a disaster plan? ___ Yes ___ No

If yes, answer the following:

Name of disaster coordinator: ____________________________________________________

Disaster coordinator phone number: _______________________________________________

Disaster coordinator email address: ________________________________________________

Attach a copy of the disaster plan.

PROPERTY – BUILDING

Premises #_______ Building # _______

Location address:

____________________________________________________________________________________

Does the applicant own the building? ___ Yes ___ No

If no, answer the following:

Who owns the building?

_____________________________________________________________________________

Is the applicant contractually obligated to insure the building? ___ Yes ___ No

If yes, attach a copy of the contract.

If the building sustains a major loss, would the applicant replace it with the same type of
structure? ___ Yes ___ No

If no, what would the applicant do?

____________________________________________________________________________________

If the building sustains a major loss, what new building codes would be imposed on the applicant in order to rebuild?

____________________________________________________________________________________

Describe any barriers that would prevent the fire department from responding to a fire at the applicant’s building

in a timely manner. These could include locked gates, railroad crossings, and congested or narrow roads.

____________________________________________________________________________________

Describe any barriers or bottlenecks that would prevent efficiently evacuating the building.

____________________________________________________________________________________

How many fire extinguishers and smoke alarms are on premises?

____Fire extinguishers ____Smoke alarms

When was the building built? _____

In what year were the following systems last updated?

______Heating ______ Electrical ______ Roof ______ Plumbing

Have any additions been made to the building? ___ Yes ___ No

If yes, describe the addition and the date it was completed.

____________________________________________________________________________________

PROPERTY – BUILDING – ADDITIONAL PROPERTY

Premises # _______ Building # _______

Location address:

____________________________________________________________________________________

The ISO Building and Personal Property coverage form excludes the following property. If the applicant desires

coverage for any of them, check the box and place a limit under the valuation selected.

	RCV	ACV
Costs required to excavate, grade, fill, or backfill	$____________	$____________
Fences	$____________	$____________
Bridges	$____________	$____________
Piers/wharves, docks, pilings, or bulkheads	$____________	$____________
Underground pipes, flues, and/or drains	$____________	$____________
Paved surfaces	$____________	$____________
Foundations below the ground’s surface	$____________	$____________
Detached retaining walls	$____________	$____________
Other	$____________	$____________

Describe other.

______________________________________________________________________________________

Note: Coverage applies only if CP 14 10–Additional Property is attached. The property to be covered must be

completely described, and the Property Not Covered paragraph in CP 00 10 that states it was Not Covered

property must be included. In addition, the building limit on the declarations must be increased to include the

additional property’s value because the coinsurance calculation also includes that property’s value to determine

the coinsurance penalty once the property is added.

PROPERTY – BUSINESS PERSONAL PROPERTY

Premises # _______ Building # _______

Location address:

______________________________________________________________________________________

Describe the business personal property.

______________________________________________________________________________________

Do the applicant’s business personal property values fluctuate? ___ Yes ___ No

If yes, is the fluctuation ___Monthly ____Seasonal (from_________ to _________)

Is the business personal property:

Highly flammable: ___ Yes ___ No

Susceptible to severe damage from: ___Smoke ___ Heat ___ Water ___ Temperature

Do any other occupancies in this building present a significant exposure hazard to the applicant? Examples

are explosion, fire or chemical hazards but are not limited to just them. ___ Yes ___ No

If yes, describe.

______________________________________________________________________________________

Would the applicant’s business personal property be damaged if the off-premises supplied heat, light or power failed?

___ Yes ___ No

If yes, answer the following:

Describe what would be damaged and how quickly.

_________________________________________________________________________________

How is the heat, light or power transmitted to the applicant?

_________________________________________________________________________________

Will alarms sound or will there be other notification if power fails or shuts off? ___ Yes ___ No

Are backup generators available? ___ Yes ___ No

Are detailed records kept of all of the applicant’s inventory, machinery, fixtures, or equipment, including their purchase

date and price? ___ Yes ___ No

Does the applicant label and assign inventory numbers to all items? ___ Yes ___ No

BURGLAR ALARM

Describe any burglary exposures beyond what is usual to the applicant’s type of business.
_______________________________________________________________________________________

_______________________________________________________________________________________

Describe any special features of the applicant’s burglar alarm or safe or vault alarm systems not noted elsewhere.

_______________________________________________________________________________________

IMPROVEMENTS AND BETTERMENTS

Is the applicant a tenant? ___ Yes ___ No

If yes, answer the following.

Describe all improvements or betterments that have been added by or for the applicant but that will remain

with the building when the applicant leaves.

_________________________________________________________________________________

What is the term of the applicant’s lease? ________________________________________________

What is the applicant’s lease renewal option term? _________________________________________

PROPERTY – INVENTORY

The purpose of this listing is to provide guidance in two areas:

a) Placing all items in the proper category

b) Insuring to value

Complete an inventory for all buildings at each premises.

Premises #_______ Building # _______

Location address:

_________________________________________________________________________________________

BUILDING

The applicant might want to consider one of the optional valuation methods available if the market value is considerably

less than either the Replacement Cost Valuation (RCV) or the Actual Cash Value (ACV) Valuations. Although there is a

surcharge in the pricing, the difference in premium can be significant.

	RCV	ACV	Market Value
Building	$______________	$______________	$______________

Building Additions	$______________	$______________	$______________

Fixtures – include sprinkler systems, irrigation sprinkler lights, security systems, etc.

Description	RCV	ACV	Market Value
_________________	$__________________	$______________	$______________
_________________	$__________________	$______________	$______________
_________________	$__________________	$______________	$______________
_________________	$_________________	$______________	$______________
_________________	$_________________	$______________	$______________
_________________	$_________________	$______________	$______________
Total Fixtures	$_________________	$______________	$______________

Permanently installed machinery and equipment used in production, manufacturing, and processing:

Description	RCV	ACV	Market Value
_________________	$__________________	$__________________	$__________________
_________________	$__________________	$__________________	$__________________
_________________	$__________________	$__________________	$__________________
_________________	$__________________	$__________________	$__________________
_________________	$__________________	$__________________	$__________________
_________________	$__________________	$__________________	$__________________
Total M&E	$__________________	$__________________	$__________________

PI-b-5

Machinery and equipment used to maintain or service the premises: (This includes fire extinguishing equipment,

outdoor furniture, and appliances used for refrigerating, ventilating, cooking, and dishwashing.)

Description	RCV	ACV	Market Value
_________________	$__________________	$__________________	$__________________
_________________	$__________________	$__________________	$__________________
_________________	$__________________	$__________________	$__________________
_________________	$__________________	$__________________	$__________________
_________________	$__________________	$__________________	$__________________
_________________	$__________________	$__________________	$__________________
Total M&E	$__________________	$__________________	$__________________

Landlord property in furnished apartments, rooms for rent, and common areas: (This includes appliances, furniture,

clothing and bedding, cookware, and consumable supplies including food.)

Note: The items listed are considered building under the Businessowners Policy (BOP) but not under the

Commercial Property Coverage Form.

Description	RCV	ACV	Market Value
_________________	$__________________	$__________________	$__________________
_________________	$__________________	$__________________	$__________________
_________________	$__________________	$__________________	$__________________
_________________	$__________________	$__________________	$__________________
_________________	$__________________	$__________________	$__________________
_________________	$__________________	$__________________	$__________________
Total Landlord Property	$__________________	$__________________	$__________________

Add together the building, additions, fixtures, machinery and equipment, service machinery and equipment and,

if applicable, landlord property to develop the building value.

	RCV	ACV	Market Value
Total Building	$___________________	$__________________	$__________________

BUSINESS PERSONAL PROPERTY

This is all furnishings that are not listed as building above that the named insured either owns or leases:

Note: Do not list business personal property more specifically insured under another policy. Examples are

computers, electronic devices, antiques, fine arts, etc. These items can be removed from the limit of insurance

because the only coverage provided for it is excess coverage.

Description	RCV	ACV	Market Value
_________________	$__________________	$__________________	$__________________
_________________	$__________________	$__________________	$__________________
_________________	$__________________	$__________________	$__________________
_________________	$__________________	$__________________	$__________________
_________________	$__________________	$__________________	$__________________
_________________	$__________________	$__________________	$__________________
Total Furnishings	$__________________	$__________________	$__________________

STOCK

Stock valuation is selling price less discounts and costs that the named insured would not incur if the stock

was damaged or lost. It is calculated as follows:

Selling price of stock on hand	$__________________
Estimated discount (Selling price X average discount %)	– $_________________
Estimated costs that will not be incurred (Shipping, handling, and packaging)	– $_________________
Total Stock Value	$__________________

Note: The amount of stock on hand may vary significantly from month to month. In that case, use the highest

monthly value as the starting point and consider using a reporting form.

Improvements and Betterments

If improvements and betterments are combined with business personal property as one limit, they are rated

as business personal property. If there is a separate limit for improvements and betterments on the declarations,

they are rated as building.

Description:

____________________________________________________________________________________

Original Cost $________________ RCV $________________ ACV $________________

Term of lease __________

Note: If the applicant does not repair the Improvements and Betterments (I&B) at the time of loss, the valuation

is determined by dividing the remaining number of days of the lease by the total number of days in the lease

and multiplying that factor times the original cost of the improvements and betterments.

Add together the furnishings, stock and, if applicable, improvements and betterments to develop the business

personal property value.

	RCV	ACV	Market Value
Total Business Personal Property	$___________________	$__________________	$__________________

PERSONAL PROPERTY OF OTHERS

Personal property of others is valued at ACV unless the named insured purchases the PPO RCV extension.

This RCV valuation is limited to RCV or the written contract amount value, whichever is less.

Description	RCV	ACV	Contract Value
______________________	$______________	$______________	$______________
______________________	$______________	$______________	$______________
______________________	$______________	$______________	$______________
______________________	$______________	$______________	$______________
______________________	$______________	$______________	$______________
______________________	$______________	$______________	$______________
Total PPO	$______________	$______________	$______________