COMMERCIAL OUTPUT PROGRAM AVAILABLE ENDORSEMENTS AND THEIR USES

(June 2025)

COMMERCIAL OUTPUT PROGRAM COVERAGE PARTS

COMMERCIAL OUTPUT PROGRAM OPTIONAL ENDORSEMENTS

INTRODUCTION

This listing identifies endorsements available to modify the AAIS Commercial Output Program. It is arranged by form number and title, and it includes a brief explanation of the use of each form. This article does not include any state specific or terrorism endorsements.

The Commercial Output Program Edition 3.0 no longer uses any forms or endorsements from Edition 2.0. Those forms and endorsements have either been updated and assigned new numbers or integrated into the basic coverage form. Unless otherwise stated, all endorsements are the 04 02 edition.

Related Articles:

AAIS Commercial Output Program Endorsements Checklist

AAIS Commercial Output Program Archive provides a listing and description of the Edition 2.0 forms and endorsements

COMMON POLICY FORMS

CL 0100–Common Policy Conditions

This form provides conditions common to commercial policy forms and coverages needed to complete a policy. The conditions contained in this form are Assignment, Cancellation, Change, Modification, or Waiver of Policy Terms, Inspections, and Examination of Books and Records.

CL 0700–Virus or Bacteria Exclusion

This mandatory endorsement must be attached to the policy. It excludes all loss due to any contamination by defined virus and bacteria.

COMMERCIAL OUTPUT PROGRAM COVERAGE PARTS

CO 1000–Commercial Output Program–Property Coverage Part

The primary coverage part must be included with any Commercial Output policy issued.

CO 1001–Commercial Output Policy Program–Income Coverage Part

Use with the CO 1000 when time element coverages are provided.

CO 1003–Equipment Breakdown Coverage Part

Use with the CO 1000 to provide equipment breakdown coverage.

CO 1004–Spoilage Coverage Part–Scheduled Coverage

Used with the CO 1000 to provide spoilage coverage on a scheduled basis.

CO 1005–Spoilage Coverage Part–Blanket Coverage

Use with the CO 1000 to provide spoilage coverage on a blanket basis.

CO 1006–Crime Coverage Part–Employee Fraud and Dishonesty and Money and Securities

Use with the CO 1000 to provide employee fraud and dishonesty coverage and loss or destruction of money and securities coverage on a loss sustained basis.

CO 1007–Crime Coverage Part–Loss Sustained

Use with the CO 1000 in place of CO 1006 in order to provide employee fraud and dishonesty, loss or destruction of money and securities, plus Computers and Telecommunications Fraud, Counterfeit Money, Forged Credit Card Written Instruments, and Forged Checks coverages.

CO 1008–Crime Coverage Part–Discovery Basis

Identical to CO 1007, except coverage is provided on a discovery basis rather than loss sustained.

COMMERCIAL OUTPUT PROGRAM SCHEDULES

CO 1050–Schedule of Coverages–Commercial Output Program

Use with CO 1000 to display coverages and limits.

CO 1051–Schedule of Coverages–Commercial Output Program

This is identical to CO 1050 except for the addition of Equipment Breakdown and Spoilage coverages.

CO 1052–Location Schedule

The COP does not specify individual locations unless the CO 1050 or CO 1051 indicates that locations are scheduled. When scheduling locations, two forms must be attached. This schedule and the CO 1227 – Scheduled Locations Endorsement. The CO 1227–Scheduled Locations Endorsement explains how coverage is changed.

CO 1053–Protective Devices Schedule–Crime Coverage

Use with CO 1115–Protective Devices or Services Endorsement to display the location address, the coverages that apply, and to describe the protective device or service to be maintained.

CO 1054–Crime Schedule–Blanket Limits

Use with CO 1006–Crime Coverage Part to display coverage limits and deductibles as well as limits for coverage extensions, supplemental coverages, coverage options and designated welfare or pension benefit plans.

CO 1055–Crime Schedule–Scheduled Limits and Locations

When crime limits vary by location, a separate CO 1055 must be attached for each such location covered under the CO 1006–Crime Coverage Part. It displays coverage limits and deductibles for the location listed and described. Limits of insurance for coverage extensions, supplemental coverages, coverage options, and named employee welfare or pension benefit plans for that location must be provided.

CO 1056–Crime Schedule–Covered Locations

When the option on CO 1054–Crime Schedule-Blanket Limits is used to restrict coverage to only scheduled locations, this schedule must be attached, and the applicable locations must be listed. If a loss occurs at a location not listed, there is no coverage.

CO 1057–Crime Schedule–Specific Limits

Use with CO 1007 and CO 1008–Crime Coverage Parts to display coverage limits and deductibles for the selected coverages. It is also used to display limits of insurance for coverage extensions, supplemental coverages, coverage options, and named employee welfare or pension benefit plans.

CO 1058–Crime Schedule–Single Limit

Use with CO 1007 and CO 1008–Crime Coverage Parts in place of CO 1057. Instead of providing a limit and single deductible for each coverage, it provides a single limit and a single deductible that applies separately to each coverage selected on the schedule. It is also used to display limits of insurance for coverage extensions, supplemental coverages, coverage options and named employee welfare or pension benefit plans.

CO 1059–Crime Schedule–Covered Locations

When the option on either the CO 1057–Crime Schedule–Specific Limits or the CO 1058–Crime Schedule–Single Limit is used to restrict coverage to only scheduled locations, this schedule must be attached, and the applicable locations listed. If a loss occurs at a location not listed, there is no coverage.

CO 1060–Loss Payable Schedule–Crime Coverage

Use with CO 1114–Loss Payable Options–Crime Coverage. This schedule lists the type of loss payee, the name and address of the loss payee and describes the property involved. The CO 1114 must be attached to explain how the policy responds to the particular type of loss payee.

CO 1061–Excluded Locations Schedule (10 07 edition)

The unendorsed COP provides coverage for all locations. However, this schedule excludes certain locations from the broad coverage definition. Therefore, all locations are covered except those listed on this schedule. This serves as a good alternative to scheduling all covered locations just to exclude one or two.

CO 1062–Earthquake Schedule

Required when CO 1221–Earthquake Endorsement is attached to the policy. This schedule is to provide details of location, covered property and/or coverage provided, and limits.

CO 1063–Flood Schedule

Required when CO 1223-Flood Coverage is attached to the policy. This schedule is to provide details of location, covered property and/or coverage provided, and limits.

CO 1064–Vehicle Schedule

Use with the CO 1225–Vehicle Coverage Endorsement to provide a description, vehicle identification number, and limit of insurance for covered vehicles.

CO 1065–Protective Devices Schedule

Use with CO 1238–Protective Devices Endorsement to list, by location, the protective devices or services that are warranted to be active.

CO 1066–Ordinary Payroll Exclusion Schedule–Additional Exemptions

When ordinary payroll is excluded from coverage, there may be a need to continue to cover specific employees’ payroll because of their unique skills. This schedule, when used with CO 1240–Ordinary Payroll Exclusion, allows the named insured to select such employees or employee classifications. It is very important to review this schedule at each renewal because the individual named may be replaced or the job classification name may change.

CO 1067–Ordinary Payroll Limitation Schedule

Must be attached when CO 1242–Ordinary Payroll Limitation is attached. It is used to list the number of days for which ordinary payroll coverage is provided. It also provides a schedule for listing additional job classifications and employees that are excluded from ordinary payroll and, therefore, are not subject to this limitation.

CO 1068–Seasonal Leases Schedule

Attach when CO 1250–Seasonal Leases is used. It lists the locations, months of operations and limit of insurance per month for covered rents.

CO 1069–Reporting Schedule (10 07 edition)

Attach when CO 1231–Reporting Conditions is used. It displays the selected reporting period, adjustment period, types of values to be reported, rate and deposit and minimum premium. Wording was added to explain that the calculated additional premium is due when billed.

CO 1070–Off Premises Utility Service Interruption Schedule

Use with CO 1286–Off Premises Utility Service Interruption–Coverage Limitation to restrict Off Premises Utility Service Interruption coverage to only the locations listed on this schedule and only for the coverage, limits provided, and the covered utility services scheduled.

CO 1071–Off-Site Server Schedule

Attach when CO 1289–Off Site Server Coverage and Interruption of Web Site is provided. It displays the selected coverage(s) and the applicable limits, deductible and/or waiting period.

CO 1072–Loss Payable Schedule

Use with CO 1232–Loss Payable Options to list the type of loss payee, the name and address of the loss payee and describes the property involved. The CO 1232 must be attached to explain how the policy responds to the particular type of loss payee.

CO 1073–Equipment Breakdown Schedule (03 05 edition)

Use when CO 1003-Equipment Breakdown Coverage is added to the policy. This schedule is used along with the CO 1050 Schedule of Coverages. It is used to provide the coverage limits, limits for coverage extensions, and the deductible.

This schedule should not be used when the CO 1051 is attached and the Equipment Breakdown Coverage is described.

Related Article: CO 1003–AAIS Commercial Output Program Equipment Breakdown Coverage

CO 1074–Spoilage Schedule

Use when the CO 1004 or CO 1005 Spoilage Coverage Part is added to the policy. This schedule is used to indicate which spoilage coverage is selected (blanket or scheduled), the limits, deductible, additional conditions, and if scheduled spoilage coverage is selected, the perils covered.

This schedule should not be used when the CO 1051 schedule is attached and Spoilage Coverage is elected.

Related Article: CO 1004 and CO 1005–AAIS Commercial Output Program Spoilage Coverage Parts

CO 1075–Scheduled Locations–Spoilage Coverage

Use when the CO 1004 Spoilage Coverage Part – Scheduled Coverage is attached to the policy. This schedule provides a list of covered locations and their limits.

Related Article: CO 1004 and CO 1005–AAIS Commercial Output Program Spoilage Coverage Parts

CO 1076–Schedule of Dependent Locations–Separate Limits

Use when the CO 1204–Income Coverage From Dependent Locations–Separate Limits is attached. This schedule is required to list the dependent locations and allows a limit to be entered for Unscheduled Dependent Locations. In addition, this schedule requires a check beside the type of dependent location.

CO 1077–Functional Replacement Cost Schedule

Use when the CO 1279–Functional Replacement Cost Endorsement is attached. This schedule is required to display the covered property to which the endorsement applies and the applicable limit.

CO 1078–Expanded Definition of Employee–Schedule

Use this when the CO 1101 – Expanded Definition of Employee Endorsement is attached to forms CO 1006, CO 1007, or CO 1008. This endorsement allows for the selection of one or more types of natural persons to be included in the definition of employee.

CO 1079–Limited Fungus and Related Perils Schedule – Location Limit

Use this when the schedule location limit is desired in order to complete CO 1293–Limited Fungus and Related Perils Coverage. Each covered location and an aggregate annual limit must be entered. When no limit is entered, the default limit of $15,000 applies. The number of days for interruption coverage is 30 days by default but may also be increased.

CO 1080–Limited Fungus and Related Perils Schedule – Blanket Limit

Use this when the blanket limit is desired in order to complete CO 1293–Limited Fungus and Related Perils Coverage. No locations are listed. Instead, a single blanket aggregate annual limit applies over all locations – not per location. When no limit is entered, the default limit of $15,000 applies. The number of days for interruption coverage is 30 days by default but may also be increased.

CO 1081–Limited Fungus and Related Perils Schedule–Location Limit–Equipment Breakdown

Use this to complete the CO 1294–Limited Fungus and Related Perils Equipment Breakdown. Each covered location must be entered, and an aggregate annual limit must be entered. The default limit of $15,000 applies but may be increased by entering a limit greater than $15,000.

The default number of days for interruption coverage is 30, but may be increased by checking the Limited Fungus and Related Perils Income Coverage Extension and adding the desired number of days greater than 30.

CO 1082–Limited Fungus and Related Perils Schedule–Blanket Limit–Equipment Breakdown

Use this to complete the CO 1294–Limited Fungus and Related Perils Coverage Equipment Breakdown. No locations are listed. Instead, a single blanket aggregate annual limit applies over all locations – not per location. The default limit of $15,000 applies but may be increased by entering a limit greater than $15,000.

CO 1083–Schedule of Dependent Domestic and Foreign Locations (10 07 edition)

Use when the CO 1298–Income Coverage From Dependent Domestic and Foreign Locations is attached. This schedule is required to list the dependent locations and Waiting Period. In addition, this schedule requires a check beside the type of dependent location.

CO 1084–Windstorm and Hail Schedule (10 07 edition)

Use this schedule when CO 1220–Windstorm or Hail Deductible is attached. This schedule is used to indicate the covered location, and the flat or percentage deductible that applies to Windstorm or Hail.

CO 1085–Multiple Deductible Schedule - Scheduled Perils and Locations (10 07 edition)

Use this schedule when CO 1237–Multiple Deductible Scheduled Perils and Locations is attached. It is used to provide location details, describe perils, and type and amount of deductible.

CO 1087–Green Coverage Schedule (11 09 edition)

Use this schedule when the CO 1201–Green Coverage Endorsement is attached. It is used to determine whether Green Building Coverages and/or Non-Green Building Coverages are included or not provided. Additionally, it is used to select the Green Income Coverage and to indicate if the Alternate Certification Company applies. If the Alternate Certification Company applies, there is space to provide a description.

NOTE: CO 1088–Schedule of Green Buildings – Green Buildings and/or CO 1089-Schedule of Green Buildings – Non-Green Building Coverages are required to complete the schedule.

Related Article: CO 1201–Green Coverage Endorsement

CO 1088–Schedule of Green Buildings - Green Building Coverages (11 09 edition)

This schedule is only for the Green Building Coverages. Locations must be listed, coverages must be selected, and limits must be provided. It is used only when CO 1201–Green Coverage and CO 1087–Green Coverage Schedule are attached.

NOTE: Limits must be entered because there are no defaults.

Related Article: CO 1201–Green Coverage Endorsement

CO 1089–Schedule of Green Buildings - Non-Green Building Coverages (11 09 edition)

This schedule is only for the Non-Green Building Coverages. Locations must be listed, coverages must be selected, and limits must be provided. It is used only when CO 1201–Green Coverage and CO 1087–Green Coverage Schedule are attached.

NOTE: Limits must be entered because there are no defaults.

Related Article: CO 1201–Green Coverage Endorsement

COMMERCIAL OUTPUT PROGRAM OPTIONAL ENDORSEMENTS

CO 1101–Expanded Definition of Employee

The definition of employee in Crime Coverage Parts CO 1006, CO 1007 and CO 1008 is expanded to include eight category definitions of natural persons that qualify as employees. The category selection must be made on CO 1078–Expanded Definition of Employee Schedule. When the definition of employee is expanded, natural persons become covered persons under certain coverages but excluded persons under others, making this coverage either expansive or restrictive, depending on the specific coverage.

CO 1103–Excluded Employees or Classes of Employees

The definition of employee in Crime Coverage Parts CO 1006, CO 1007 and CO 1008 is changed to specifically exclude individual employees or classes of employees scheduled on this endorsement. When the definition of employee is restricted, the actions of the excluded employee(s) or classes of employees are not covered under certain coverages, but may be covered under others. This endorsement is restrictive, depending on the coverage.

CO 1104–Designated Agents as Employees

The definition of employee in Crime Coverage Parts CO 1006, CO 1007 and CO 1008 is expanded to include agents under contract with the insured to manage or administer employee welfare or pension benefit plans. The agent must be scheduled on the endorsement.

CO 1105–Trading Coverage–Employee Fraud and Dishonesty

Employee Fraud and Dishonesty coverage provided in Crime Coverage Parts CO 1006, CO 1007 and CO 1008 is expanded to include losses from trading.

CO 1106–Territorial Limits Amended

The territory in Crime Coverage Parts CO 1006, CO 1007 and CO 1008 is expanded to worldwide.

CO 1107–Designated Property Exclusion

Coverage for Computer or Telecommunications Fraud and for Money and Securities under Crime Coverage Parts CO 1006, CO 1007, and CO 1008 is limited by exclusions specified for certain items or types of property at designated locations, along with marking the applicable coverage(s).

CO 1108–Designated Location Exclusion

Crime Coverage Parts CO 1006, CO 1007 and CO 1008 are restricted by excluding coverage at scheduled locations. This endorsement requires the excluded location to be listed and the applicable excluded coverage(s) to be marked.

CO 1109–Designated Armored Vehicle Company Exclusion

Crime Coverage Parts CO 1006, CO 1007 and CO 1008 are restricted by excluding coverage for money and securities while in the care, custody or control of a scheduled armored vehicle company. The excluded companies must be listed.

CO 1110–Retroactive Date Applicable to Named Insured–Discovery Basis

This modifies the unlimited discovery period found in CO 1008–Crime Coverage Part–Discovery Basis by adding a retroactive date.

CO 1111–Retroactive Date Applies to Designated Multiple Named Insured–Discovery Basis

This endorsement is the same as CO 1110, but a retroactive date can be set differently for each named insured. The multiple named insured must be listed along with the retroactive date.

CO 1112–Retroactive Date Applies to Acquired Entity–Discovery Basis

This endorsement is the same as CO 1110 except that it applies only to scheduled entities acquired from consolidation, merger or purchase. The name of the entity must be listed along with the retroactive date.

CO 1113–Peak Season or Single Exposure Increase–Crime Coverage

This endorsement is used for Money and Securities coverage provided in Crime Coverage Parts CO 1006, CO 1007 and CO 1008 to increase the limits of insurance for a listed and described location during the scheduled time period.

CO 1114–Loss Payable Options–Crime Coverage

This endorsement is used when CO 1060–Loss Payable Schedule–Crime Coverage is attached. It explains each type of Loss payee and the responsibility of the insurance company toward that loss payee.

CO 1115–Protective Devices or Services Endorsement–Crime Coverage

If an agreement is made to keep protective devices or services in place to secure coverage, this endorsement is attached as a warranty. If the equipment is not kept in working order or the service contract terminates, there is no coverage for certain crime losses. For this endorsement to be in effect, CO 1053– Protective Devices Schedule–Crime Coverage must be attached.

CO 1201–Green Coverage Endorsement (11 09 edition)

This endorsement extends coverage to pay for an insured to rebuild in a greener manner when a covered loss occurs. It explains that Green Building Coverage meets the green certification standards, while Non-Green Building Coverage does not.

Related Article: CO 1201–Green Coverage Endorsement

CO 1202–Expanded Restoration Period–Extra Expense

This endorsement restricts the limits for extra expense payments to no more than a fixed percentage of the total available limit within a specific 30-day period, rather than the standard 100% available under the income coverage part.

CO 1204–Income Coverage From Dependent Locations–Separate Limits

This endorsement is used when the CO 1076–Schedule of Dependent Locations–Separate Limits is attached. It removes dependent locations from the supplemental income coverage in the income coverage part. It then adds the coverage back, but only when direct physical damage occurs at a scheduled dependent location for which a limit has been specified on the schedule.

CO 1220–Windstorm or Hail Deductible (10 07 edition)

This endorsement is used to provide a separate deductible for windstorm or hail losses by amending the deductible provision. It explains how the separate and optional deductibles apply and how the percentage deductible is calculated.

CO 1221–Earthquake Endorsement

This endorsement provides coverage for property and income coverage for the earthquake peril. It is available on a blanket or scheduled location basis. CO 1062–Earthquake Schedule must be attached.

CO 1223–Flood Endorsement

This endorsement provides coverage for property and income coverage for the flood peril. It is available on a blanket or scheduled location basis. CO 1063–Flood Schedule must be attached.

CO 1225–Vehicle Coverage Endorsement

The endorsement is used to provide coverage for scheduled vehicles. This is due to the Property Coverage Part excluding coverage for motor vehicles. CO 1064–Vehicle Schedule must be attached to provide the covered vehicle’s description.

NOTE: It is important to understand the limitations of this endorsement's coverage before excluding physical damage coverage from the Business Auto Policy.

CO 1227–Scheduled Locations Endorsement (05 02 edition)

This restrictive endorsement changes the property and income coverage parts from insuring covered property regardless of location to insuring covered property at only the locations listed on CO 1052–Location Schedule. Because of this restriction, coverage is introduced for Newly Built or Acquired Buildings, Business Personal Property at Acquired Locations, Locations “You” Elect Not To Describe (blanket coverage at unscheduled locations), and Newly Built or Acquired Locations – Income Coverage. Limits for these items and coinsurance must be displayed on CO 1050 or CO 1051–Schedule of Coverages – Commercial Output Program.

CO 1228–Property Excluded

This endorsement is used to exclude property.

CO 1229–Named Storm Exclusion (10 07 edition)

All direct and indirect damage (not just windstorm or hail) caused by a named tropical storm or hurricane is excluded at the locations scheduled on this endorsement.

CO 1231–Reporting Conditions

The COP is a non-reporting coverage form. If the reporting option is selected, this endorsement must be attached to explain the applicable premium calculation and insurance company reporting requirements. The form also explains the penalties for non-compliance. The CO 1069–Reporting Schedule must be attached, as it provides essential information needed to calculate the premium and apply penalties.

CO 1232–Loss Payable Options

Use this endorsement to add a Loss Payable, Lender’s Loss Payable, or Contract of Sale. This endorsement explains each type of Loss payee and the responsibility of the insurance company toward that loss payee. The CO 1072–Loss Payable Schedule must be attached.

CO 1233–Premium Payments

This endorsement is used on multiple-year or continuous policies. It states a new premium is developed each year using current rates.

CO 1234–Multiple Deductible–Scheduled Perils

This endorsement is used to replace the property coverage part deductible. It allows deductibles to vary based on the listed perils.

CO 1235–Multiple Deductible–Schedule Locations and Property

This endorsement is used to replace the property coverage part deductible. It allows deductibles to vary based on property type and scheduled locations.

CO 1236–Power, Heat, and Refrigeration Exclusion

This endorsement pertains exclusively to the income coverage section. It enables the insured to maintain a lower limit of insurance by excluding the expenses associated with non-continuing power, heat, and refrigeration from the earnings calculation. This aspect is especially important when coinsurance is in effect.

CO 1237–Multiple Deductible – Scheduled Perils and Locations (10 07 edition)

This endorsement is used to replace the property coverage part deductible. It allows deductibles to vary based on covered peril and scheduled location.

CO 1238–Protective Devices Endorsement

This endorsement requires the items described in the CO 1065–Protective Devices Schedule to be maintained and working at all times. If not properly maintained, fire and theft losses at those locations are excluded except under limited circumstances.

CO 1240–Ordinary Payroll Exclusion

This endorsement is used to exclude ordinary payroll as described from coverage under the Income Coverage Part. It does not apply to executive payroll, payroll of department managers or payroll of employees under contract. When CO 1066–Ordinary Payroll Exclusion Schedule–Additional Exemptions is attached, the listed employees or employee classifications are also exempted from the Ordinary Payroll exclusion and therefore continue to be covered.

CO 1242–Ordinary Payroll Limitation

This endorsement is used to limit coverage for ordinary payroll to 90, 120, 150 or 180 days. The CO 1067–Ordinary Payroll Limitation Schedule must be attached to state the number of days and list any employees or employee classifications not considered ordinary payroll and therefore continue to be covered.

CO 1247–Theft Exclusion

This endorsement is used to exclude the peril of theft.

CO 1248–Tuition Coverage

This endorsement is used to cover earnings under the Income Coverage Part. It expands coverage to include tuition, fees and other educational services and related activities due to a covered loss. The period of restoration is also expanded to include the full school term following the loss if the repairs are not completed at least 30 days before the new school term begins.

Related Article: CP 15 25–Business Income Changes–Educational Institutions

CO 1250–Seasonal Leases

This endorsement is used to expand the definition of earnings to include seasonal rental income in the Income Coverage Part. The CO 1068–Seasonal Leases Schedule must be attached to provide the covered locations and applicable limits of insurance.

CO 1254–Stated Value Endorsement

This endorsement is used to state the values of covered property and replaces the valuation provision located in the property coverage.

NOTE: The How Much We Pay Section continues to apply.

CO 1264–Transit Backhaul

This endorsement is used when the insured transports property of others on a return trip from a primary delivery. Transit coverage under the Property Coverage Part is broadened to encompass the named insured's liability for property of others based on a common or contract bill of lading.

NOTE: The intent is to cover the occasional situation where the named insured transports its own goods and chooses to transport property belonging to others on the return trip.

CO 1270–Resident Agent Countersignature

This endorsement is used when a state necessitates a countersignature. Countersignatures help ensure adherence to state laws, especially in states where insurance policies must be signed by a licensed resident agent. Some states or specific lines of business may still require countersignatures, particularly for surplus lines policies or certain specialty coverages. Furthermore, for multi-state policies, it's essential to confirm the requirements for each state.

CO 1271–Monthly Limitation–Income Coverage

This endorsement is used to limit the income coverage provided during the restoration period. The maximum amount of income coverage available in any 30 consecutive days will not exceed the percentage or fraction specified in the schedule, multiplied by the income coverage limit.

CO 1277–Vacancy or Unoccupancy Coverage

This endorsement is used to amend the vacancy - unoccupancy condition to provide full coverage for the time period described at the scheduled location. Coverages for vandalism and/or sprinkler leakage can continue to be excluded if they are selected in the endorsement schedule.

CO 1278–Earthquake Sprinkler Leakage

This is an additional Supplemental Coverage. Direct physical loss or damage to covered property caused by sprinkler leakage is expanded to include coverage when the sprinkler leakage results from an earthquake. A limit and deductible must be entered on the endorsement schedule.

NOTE: There are no definitions and no “168 hours equals one event” statement in this endorsement. This may result in coverage applying separately to damage from each earthquake shock and aftershock, meaning a separate deductible may apply for each event.

CO 1279–Functional Replacement Cost Endorsement

This endorsement is used to amend the valuation of replacement cost to Functional Replacement Cost. This permits the insured to replace items on a functionally equivalent basis rather than a like-kind and quality basis, thereby reducing the required limit of insurance. CO 1077–Functional Replacement Cost Schedule must be attached to describe the property and provide the limit of insurance.

Related Article: CP 04 38–Functional Building Valuation

CO 1280–Property and Income Coverage Deductible

This endorsement amends the deductibles for Property and Income Coverage. A variety of deductibles are available for selection under property and/or income coverage.

CO 1281–Waiting Period–Income Coverage

This endorsement is used to add a 72-hour waiting period to the period of restoration.

NOTE: The waiting period applies only to income coverage. Extra expense has no waiting period.

CO 1282–Overseas Transit and Location

This endorsement is used to provide coverage for personal property while temporarily at a foreign location, including while it is in transit. This endorsement only provides coverage for personal effects, portable computers, property while on exhibit, and samples of stock in trade. A limit and deductible must be scheduled on the endorsement.

CO 1283–Overseas Transit and Location–Property and Income Coverage

This endorsement is used to provide coverage for Property and/or Income Coverage for specific personal and business personal property while temporarily located at a foreign location, including during transit to and from that location. It only covers personal effects, portable computers, property on exhibit, and samples of stock in trade. A limit for Personal Property and/or Income Coverage and a deductible must be specified on the endorsement.

CO 1284–Research and Development Projects–Income Coverage

This endorsement is used with the Income Coverage Extension form by providing extended earnings coverage. It covers losses related to research or development projects that delay the introduction or improvement of an insured product. To qualify for coverage, the loss must result from a covered direct physical loss to eligible property. The coverage is available up to the full limit of income coverage, unless a different limit is specified in the coverage schedule.

CO 1286–Off Premises Utility Service Interruption–Coverage Limitation

This endorsement modifies coverage to include only selected utilities at designated locations. It eliminates coverage for off-premises utility service interruption coverage from the property and income coverage extensions and replaces it with this form. As a result, coverage is reinstated for either or both forms, but solely at the specified locations for the chosen utilities, and it will follow the limits and deductible/waiting periods outlined in CO 1070 – Off Premises Utility Service Interruption Schedule. Please be aware that coverage for overhead transmission lines is not included.

CO 1287–Installment Sales Coverage

This endorsement is used to replace Property You Have Sold. It safeguards the named insured's interest in business personal property that is sold under an installment sales plan or installation agreement while the property is in transit, as well as after it has been delivered to the purchaser. The property is subject to a specific valuation section, and a limit of insurance must be specified on the schedule.

CO 1288–Peak Season Increase (03 05 edition)

This endorsement increases the covered personal property limit to a specified coverage amount for a defined time period at the specified location. The Period of Time, Location Number, Covered Location, Covered Personal Property, and a limit for each Covered Personal Property must be listed on the schedule.

Related Article: Peak Season Coverage

CO 1289–Off-Site Server Coverage and Interruption of Web Site

This endorsement is used to extend coverage for the property and/or income coverage parts. It provides coverage for direct damage to owned or leased off-site servers. The coverage extends to interruption of web site coverage, and there are excluded perils.

CO 1293–Limited Fungus and Related Perils Coverage (11 03 edition)

This is used to add limited coverage for fungus and related perils as defined in the endorsement. Coverage is provided for loss caused by fungus or related perils resulting from “specified perils” (excluding fire and lightning) and flood (if flood endorsement applies to the location). This endorsement also applies to the Income Coverage with a 30-day aggregate limit provided, unless otherwise indicated on the schedule. Additionally, it provides a $15,000 limit with a 12-month aggregate.

In order to complete the endorsement, coverage can be added on a blanket or scheduled basis: CO 1080–Limited Fungus and Related Perils Schedule – Blanket Limit or CO 1079–Limited Fungus and Related Perils Schedule - Location Limit.

NOTE: It is essential to recognize that this coverage is limited. If loss due to fungus or related perils results from events outside the specified perils (including flood, if applicable), then fungus and related perils remain excluded.

CO 1294–Limited Fungus and Related Perils Coverage–Equipment Breakdown

This endorsement is identical to CO 1293–Limited Fungus and Related Perils Coverage except that it applies only to Equipment Breakdown coverage.

There are two options available: Blanket Coverage or Scheduled Locations. Both options allow for increasing the limit of insurance and the number of days for interruption coverage. One of the following schedules must be selected:

· CO 1082–Limited Fungus and Related Perils Schedule – Blanket Limit - Equipment Breakdown

· CO 1081–Limited Fungus and Related Perils Schedule Location Limit - Equipment Breakdown

CO 1297–Joint Loss Agreement (04 05 edition)

If another insurer provides equipment breakdown coverage, this endorsement explains how the two insurers will handle coverage disputes so that the named insured will be paid expeditiously.

CO 1298–Income Coverage from Dependent Domestic and Foreign Locations (10 07 edition)

This endorsement is used to provide scheduled income coverage for dependent locations. It replaces the previous coverage under the Supplemental Income coverage. The endorsement adds dependent property coverage only for the specific locations listed and for the limits detailed on the CP 1083 – Schedule of Dependent Domestic and Foreign Locations. This coverage is not restricted by the policy's territorial limitations. However, if a location is in a country that is subject to any U.S. trade embargo, economic sanctions, or other trade restrictions, there will be no coverage, even if the location is listed.

Additionally, this endorsement introduces a 72-hour waiting period for earnings losses, although this waiting period does not apply to extra expenses.