INTRODUCTION

The Civil Authority Additional Coverage in the CP 00 30, CP 00 32, and CP 00 50 policy forms covers time element losses when access to the insured business is denied by a civil authority. The reason for the order must be due to damage to a non-owned structure and caused by a covered peril.

Civil authorities may restrict public access to the area if it is considered too dangerous. For coverage under the insured's policy to apply, the insured must be within the specified radius outlined in the Civil Authority Additional Coverage.

Example: Gingerbread House is situated two miles from a state park, with a small bridge providing the only access between the park and Gingerbread. Due to a wildfire in the park, civil authorities closed all access at the small bridge to facilitate the movement of firefighters and equipment into the area for fire containment.

The wildfire took three weeks to control and extinguish. Gingerbread had to remain closed throughout this time. It did not sustain any damage. It is important to note that the fire causing the civil closure was over a mile away from Gingerbread House. As the insured location was more than one mile from the fire, Gingerbread's business income coverage did not apply.

SCHEDULE

This coverage extension must specify the insured premises and building number. The schedule has Part A (number of days) and Part B (number of miles).

If Schedule Part A is desired and more than 4 weeks of coverage is needed, then the total number of coverage days must be entered on the schedule.

If Schedule Part B is desired with an expanded one-mile radius, a larger value must be entered on the schedule. Otherwise, one mile will apply.

A. Coverage Period

As stated above, Additional Coverages–Civil Authority in CP 00 30, CP 00 32, and CP 00 50 is limited to four weeks. If a different period of time is required, the total number of days entered on the Schedule replaces the four weeks in the coverage form.

The time period in the coverage form is stated in weeks, while the entry on this endorsement must be entered in days. This means the entry must be 29 or higher if the goal is to increase coverage. The number of days entered must be considered carefully, as it completely replaces the four weeks in the coverage form.

*Number entered*	*Resulting coverage period*
No entry made	Basic four-week period applies
Zero	No coverage applies
6	Six days of coverage applies
42	Six weeks of coverage applies

NOTE: This is intended to extend a coverage limitation, not restrict it. However, nothing in this endorsement limits its use, and its title simply states Civil Authority Change(s). Entries can be confusing because the coverage form’s time period is expressed in weeks, while the time period in this endorsement’s schedule is expressed in days.

B. Radius

Coverage for civil authority is only applicable if the insured’s premises is within one mile of the damaged property. To extend coverage beyond this, a specific entry must be made to the schedule indicating an area greater than one mile, which will override the basic one-mile limit. If no entry is made, then the one-mile radius remains in effect.

NOTE: Editions prior to the 06 07 edition of CP 00 30 did not specify a mileage limit. To align with those editions, “Unlimited” should be entered. Leaving the field blank still defaults to a one-mile limit. Inputting zero may indicate that the civil authority's restriction only applies if they close the business’s physical location.

CONSIDERATIONS

Several historical events demonstrate the impact of this limitation, including the destruction of New York City's Twin Towers on 9/11, Hurricanes Katrina, Rita, and Ike, and wildfires in the western states. This endorsement could help address the significant gap created by the radius wording and the limitations in Additional Coverages – Civil Authority.