COMMERCIAL OUTPUT PROGRAM EXPOSURE ANALYSIS CHECKLIST

(July 2025)

This checklist is designed to assist in analyzing property and time element exposures in conjunction with the American Association of Insurance Services, Inc. (AAIS) Commercial Output Program (COP). This is only a starting point, and more risk-specific questions may arise as the exposures are developed. This checklist must be combined with exposure analysis checklists for other coverages to develop a complete picture of the insured's operations.

This checklist is designed as a supplement to the ACORD application.

A list of endorsements may be helpful when discussing exposures with your client.

Related Articles:

AAIS Commercial Output Program Endorsement Checklist

AAIS Commercial Output Program Available Endorsements and Their Uses

A property inventory worksheet is provided to assist in determining the proper insurance-to-value. A list of coverage extensions and supplemental coverages and the limits for each provided in the COP is also provided to use as a quick reference in determining if the insured has exposures for which the limits should be increased.

GENERAL CLIENT 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 is the applicant open per week? ___

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: _________________________________________________________

Phone number of safety director: _________________________________________________

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: ____________________________________________________

Phone number of disaster coordinator: ______________________________________________

Disaster coordinator email address: ________________________________________________

Attach a copy of the disaster plan.

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 obstacles 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? _____

When were the following systems last updated?

______Heating ______ Electrical ______ Roof ______ Plumbing

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

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

____________________________________________________________________________________

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 applicant’s business personal property:

Highly flammable: ___ Yes ___ No

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

Do any of the other occupancies in this building pose a catastrophe or other hazard to the applicant?

Examples include: explosions, fires, or chemical hazards, but are not limited to these.___ 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 notifications if power fails or shuts off? ___ Yes ___ No

Are backup generators available? ___ Yes ___ No

Are detailed records kept of all 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 burglary alarm or safe or vault systems that are 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	$______________	$______________	$______________

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.)

Add together the building, additions, fixtures, machinery, and equipment, as well as service machinery and equipment, 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 include computers, electronic devices, antiques, and fine arts. 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 the selling price less discounts and costs that the named insured would not incur if the stock were 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	$______________	$______________	$______________

BUSINESS INCOME

Premises # _______ Building # _______

Location address:

____________________________________________________________________________________

What expenses of the applicant would continue during any business suspension?

$______________ preceding 12 months $______________ current year

How many days would the applicant need in order to resume operations? _________________________

Would the applicant’s net income equal pre-loss levels as soon as the operations resumed? ___ Yes ___ No

If no, how many days would be needed before the income would return to the pre-loss level?

___ 30	___ 60	___ 90	___ 120	___ 150	___ 180
___ 210	___ 240	___ 270	___ 310	___ 340	___ 370

Describe a piece of equipment or type of operation that might force the applicant to suspend operations until it was replaced, repaired, or resumed.

____________________________________________________________________________________

LEASEHOLD INTEREST

Premises #_______ Building # _______

Location address:

____________________________________________________________________________________

Is the lease between the lessor and the applicant in writing? ___ Yes ___ No If yes, attach a copy of the lease.

What is the agreed upon monthly rent? $________________What is the estimated monthly rent of similar nearby facilities? $________________

Did the applicant make a cash payment, such as a non-refundable advance rent or a bonus, in order to lease the current space? ___ Yes ___ No

If yes, what was the amount? $________________

What is the value of improvements and betterments the applicant made to the leased premises: $ ________________

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

What are the applicant’s lease renewal term options? __________________________________________________

Does the applicant occupy the premises? ___ Yes ___ No

If no, answer the following:

Does the applicant sublet any or all of the premises? ___ Yes ___ No

If yes, is the lease between the applicant and the sub-lessee(s) in writing? ___ Yes ___ No

If yes, attach a copy of the lease.

EXTRA EXPENSE

Premises # _______ Building # _______

Location address:

____________________________________________________________________________________

Would it be necessary for the applicant to resume operations immediately following a direct damage loss, regardless of cost? ___ Yes ___ No

Develop an estimate of the extra expense exposure using the following formula:

$ _____________ Estimated daily expenses in excess of normal (rent, employees, utilities, etc.)

X _____________ Estimated number of days the extra expenses may have to be incurred

= $_____________ Total exposure for daily expenses

+$______________ Anticipated one-time expenses (equipment, generators, transport costs, advertising, etc.)

= $ _____________ Total extra expense exposure

Attach a copy of the current emergency plan to guarantee that services will be continued.

Extra Expense Worksheet

CP 15 15–Business Income Report/Worksheet

AAIS COMMERCIAL OUTPUT PROGRAM SPECIFIC CONSIDERATIONS

COVERAGE EXTENSIONS WITH LIMITS SUBJECT TO ADJUSTMENT OR CHANGE

Coverage	Limit Included in Form	Limit Needed
Debris Removal	$50,000	$
Emergency Removal Expenses	$5,000	$
Fraud and Deceit	$5,000	$
Off Premises Utility Service Int.	$50,000	$

SUPPLEMENTAL COVERAGES WITH LIMITS SUBJECT TO ADJUSTMENT OR CHANGE

Coverage	Limit Included in Form	Limit Needed
Brands or Labels Expense	$50,000	$
Expediting Expenses	$50,000	$
Fire Department Service Charges	$25,000	$
Inventory and Appraisal Expense	$50,000	$
Ordinance or Law (Increased Cost to Repair, Demolish or Clear Site)	$100,000	$
Personal Effects	$15,000	$
Pollutant Cleanup and Removal	$50,000	$
Recharge Fire Extinguishing Equip.	$50,000	$
Rewards	$10,000	$
Sewer Backup/Water Below Surface	$25,000	$
Trees, Shrubs and Plants	$50,000	$
Underground Pipes, Pilings, Bridges and Roadways	$250,000	$

SUPPLEMENTAL MARINE COVERAGES LIMITS SUBJECT TO ADJUSTMENT OR CHANGE

Coverage	Limit Included in Form	Limit Needed
Accounts Receivable	$50,000	$
Virus and Hacking	$25,000 occ./$50,000 agg.	$ occ./$ agg.
Fine Arts	$100,000	$
Off Premises Computers	$25,000	$
Property on Exhibition	$50,000	$
Property in Transit	$50,000	$
Sales Representative Samples	$50,000	$
Software Storage	$50,000	$
Valuable Papers	$100,000	$

POLICY LIMITATIONS

Coverage	Limit Included in Form	Limit Needed
Furs	$10,000 limitation on theft	$
Jewelry, Watches, Precious Stones	$10,000 limitation on theft	$
Stamps, Tickets, Letters of Credit	$5,000 limitation on theft	$

PROPERTY AND COVERAGES NOT PROVIDED BY THE COP

Coverage	Remarks	Limit Needed
Radio, television and satellite towers more than 1,000 feet from the nearest covered building	Requires coverage outside the COP	$
Fences, awnings and canopies more than 1,000 feet from the nearest covered building	Requires coverage outside the COP	$
Buildings located outside the United States and Canada	Requires coverage outside the COP	$
Aircraft	COP covers only aircraft and parts manufactured, processed, stored or held for sale	$
Automobiles	COP covers only automobiles and vehicles manufactured, processed, or stored. No coverage for property held for sale, lease, loan, or rental.	$
Watercraft	COP covers only watercraft and parts manufactured, processed, stored or held for sale	$
Animals	COP covers only owned animals held for sale when inside buildings	$
Glassware/Fragile Articles	Breakage is excluded except for building glass, bottles or containers held for sale, photographic and scientific instruments lenses and fine arts.	$

The following should be separately analyzed for their potential exposure:

Equipment Breakdown Coverage Part
Spoilage Coverage Part
Crime Coverage Parts