The Parts of A CPP
A Commercial Property Policy is flexible because it consists of several basic parts or forms:
· Declarations Forms - these tell you who is covered, the amount of insurance, the type of coverage written, other information about the business and other identifying details.
· Conditions Forms - these documents contain sets of conditions that control how the policy operates such as the customer's duties when a loss occurs, the method used for settling a loss or what steps to take when the customer and the insurer disagree over the amount of a loss.
· Coverage Forms - these include descriptions of the type of property that is covered or excluded and it explains items such as coverages, insurance limits, definitions, deductibles and other important provisions.
· Causes of Loss Forms - as you might expect, these forms describe the causes of loss (perils) that are insured against and any exclusions.
· Policy Cover or Jacket - this is, literally, a cover designed by the company providing the policy and it usually includes a table of contents or an index.
The above, basic parts can be modified or supplemented to better fit different types of businesses by adding a wide variety of optional coverage forms called endorsements.
Causes Of Loss Forms
The following Causes of Loss Forms are available under the CPP:
BASIC - protects against Fire, Lightning, Explosion, Windstorm, Hail, Smoke, Aircraft or Vehicles, Riot or Civil Commotion, Sprinkler Leakage, Vandalism, Sinkhole Collapse, and Volcanic Action
BROAD - adds several additional covered causes of loss over the Basic Form, including Breakage of Glass, Falling Objects, Weight of Snow, Ice, or Sleet, and Water Damage.
SPECIAL - provides coverage on an "all risk" basis which essentially covers anything not otherwise excluded.
EARTHQUAKE - covers earthquake shocks or volcanic eruptions that occur within any 168-hour period.
Please refer to part 2 for additional CPP coverage information.