BROCHURE: UNDERSTANDING THE PROPERTY AAIS COMMERCIAL OUTPUT PROGRAM

(July 2025)

Safeguarding your real and personal property is a crucial aspect of your insurance strategy. No matter the scale of your business, a substantial portion of your assets and resources is closely linked to your property. The AAIS Commercial Output Program is specifically tailored for medium-to-large sized businesses that have considerable property exposure and need flexible coverage options.

It’s essential to review the policy for definitions and limitations, as the information in this brochure does not constitute contract terms, and the policy is subject to the company's underwriting practices.

COVERAGE

The policy pays for direct physical loss or damage to covered property that occurs within the coverage territory and caused by a covered peril.

WHAT IS COVERED AS BUILDING?

The insurance policy treats a building as more than just a single building. When a limit of insurance is shown on the Schedule of Coverages for Building Property Limits, the following are considered as buildings:

• Building and structures

• Completed additions
• Fixtures
• Permanently installed machinery and equipment
• Personal property owned by you and used to service or maintain the building or premises
• Buildings and additions under construction, but only if not covered by other insurance
• Building glass
• Radio and television towers, antennas, satellite dishes, masts, wiring, guy wires, foundations, awnings, canopies, and fences, but only if located within 1,000 feet of a covered building or structure
• Signs
• Foundations of buildings, structures, boilers or machinery

WHAT IS COVERED AS BUSINESS PERSONAL PROPERTY?

The COP treats business personal property as more than just the contents of a building. When a limit of insurance is shown on the Schedule of Coverages for Business Personal, the following are all covered, but only if situated inside the building or within 1,000 feet of the premises in the open or in a vehicle:

• Business personal property
• If you are a tenant, your use interest in improvements made to the building
• Leased personal property you are contractually responsible to insure
• Your interest in personal property of others, such as your labor, material, and services
• Computers, if not covered elsewhere
• Personal property intended to become a permanent part of any installation, fabrication, or erection project
• Mobile equipment, if not covered elsewhere
• Personal property of others, but only if in your care, custody, or control

WHAT PROPERTY IS NOT COVERED?

Certain types of property, as listed below, are generally not eligible for coverage and are therefore excluded. In many cases, coverage is available elsewhere or under a different insurance policy or coverage form:

• Airborne or waterborne personal property
• Aircraft and watercraft that you don’t manufacture, warehouse, or hold for sale
• Animals, except those held for stock
• Automobiles and vehicles that you don’t manufacture or warehouse
• Computers as checked luggage, but only if stolen
• Contraband, or any property involved in illegal transportation or trade
• Costs of excavation
• Crops stored outside buildings
• Exports and imports while covered under an ocean marine policy
• Land, water and growing crops
• Money, securities, accounts and valuable papers
• Outdoor trees, shrubs, plants and lawns
• Any property insured elsewhere
• Property of others if you are a carrier for hire
• Sold property that has been delivered

Business Personal Property Not Covered:

• Off-site Server
• Personal property while in transit
• Fine Arts
• Computers away from a covered location
• Property temporarily on display or exhibit
• Sales Representatives stock samples
• Software, backed up or duplicated

WHAT ARE THE COVERAGE EXTENSIONS?

• Consequential loss
• Debris removal
• Emergency removal
• Emergency removal expenses
• Fraud and deceit
• Damage from theft
• Off premises utility service interruption
• Overhead transmission lines
• Perishable stock exclusion

WHAT ARE THE SUPPLEMENTAL COVERAGES?

• Brands or labels expense
• Expediting expenses
• Fire department service charges
• Inventory and appraisal expense
• Ordinance or law (undamaged parts of a building)
• Ordinance or law (increased cost to repair and cost to demolish and clear site)
• Personal effects
• Pollutant cleanup and removal
• Recharge of fire extinguishing equipment
• Rewards
• Sewer backup and water below the surface
• Trees, shrubs and plants
• Underground pipes, pilings, bridges and roadways

WHAT ARE THE SUPPLEMENTAL MARINE COVERAGES?

• Accounts receivable
• Electrical or magnetic disturbance of computers
• Power supply disturbance of computers
• Virus and hacking coverage
• Fine arts
• Off premises computers
• Property at exhibitions
• Property in transit
• Sales representative samples
• Software storage
• Valuable papers

WHAT PERILS ARE COVERED?

Coverage applies to direct physical loss or damage to covered property unless the loss is limited or is caused by an excluded peril.

NOTE: Refer to the policy for the exclusions and limitations.

ENDORSEMENTS

The AAIS Commercial Output Program has several optional coverage parts, schedules, and endorsements that can be added to the policy.

NOTE TO SUBSCRIBER: Consider attaching the AAIS Commercial Output Program Endorsement Checklist for your customer to review.

Related Article: AAIS Commercial Output Program Endorsements Checklist

REPRINT PERMISSION

PF&M subscribers are permitted to reprint any portion of this brochure for their commercial insurance customers. Other uses require permission by The Rough Notes Company, Inc.