(February 2023)
Insurance Services Office’s Market Segments program addresses several market niches. It appears under Division Twelve of ISO's Commercial Lines Manual. Market Segments Programs are optional coverages designed to wrap-around an existing commercial package policy. They do not replace basic commercial property or commercial general liability coverage forms.
The Market Segment policies are all package policies. The only coverages provided are those that may be combined on a package policy as defined in the Section Nine rules. Any policy issued under the Rules in Division 12 must include the following forms:
· IL 00 17–Common Policy Conditions
· CP 00 10–Building and Personal Property Coverage Form
· CP 00 90–Commercial Property Conditions
· CP 10 30–Special Causes of Loss Form
· CG 00 01 or CG 00 02–Commercial General Liability Coverage Form
· Applicable Common Declarations, Commercial Property Declarations and Commercial General Liability Declarations
· MS endorsement for the individual market segment
· Applicable MS Supplemental Schedule
All mandatory state specific forms and endorsements must also be attached.
Any coverage part, form, or endorsement that can be added to a package policy can be added to a Market Segment Division policy. However, before adding anything, it is important to review the coverages being provided by the MS endorsements. Remember that these endorsements have been designed to meet the needs of the individual market segment, so the coverage may already be provided within the endorsement.
Varieties of market segments are available to interested insurance carriers countrywide (subject to state approval).
Related Articles:
Market
Market Segment–Auto Service Risks
Market Segment–Dry Cleaning and Laundry
Market Segment–Hardware and Home Improvement Stores
Market Segment–Health Clubs and Gyms
Market Segment–Hotels, Motels, and Inns
Market Segment–Janitorial Services
Market Segment–Personal Care Services
Market Segments–Pest Control Services
Market Segment–Plumbing and HVAC Contractors
Market Segment–Self-Storage Facilities
The above articles discuss the features of the respective forms, including coverage, conditions, exclusions, and supplementary provisions. They also include information on their rating and underwriting.