Commercial Covered Causes of Loss

What is covered in a commercial insurance policy? What causes of loss are covered in a commercial insurance policy?

For a commercial insurance policy in Texas, you should always consult with an experienced commercial insurance agent like Hector Chavana JR to make sure you are properly covered.  You can consult with him at 713-979-2941.  Even so, it is also a good idea to understand some basic coverage principles as you purchase your insurance.  This article deals with common covered causes of loss in commercial policies.

Coverage for commercial insurance products is controlled by the contract (policy), including all forms, schedules, endorsement and amendments.  Even so, a company commonly known as ISO provides forms to which many policies adhere.  These forms are effectively suggestions to carriers as to options that carriers may offer.

Often insurers will change the coverage forms from the policy language that ISO created.  If this happens, the policy will be controlled by the policy, and not the form that ISO created.  The main thing you should understand is that your contract controls coverage, not the suggestion that an unrelated third party makes.

Even so, it is useful to understand what the basic coverage that ISO-based policies offer.  For example, according to execsins.com the causes of loss covered by ISO-based policies is as follows.

Basic Form Property Coverage ISO-CP1010

• Fire
• Lightning
• Explosion
• Windstorm/Hail
• Smoke
• Aircraft/Vehicles
• Riots
• Vandalism
• Sprinkler Leakage
• Sinkhole Collapse
• Volcanic Action

Keep in mind that each policy can alter the ISO-suggested coverage, and it is not uncommon to exclude coverage in high risk areas.  Here, in Texas, for example, it is common to exclude wind coverage along the gulf coast.  That wind coverage is often offered by the Texas Windstorm Association.  Check your policy to find out what coverage applies to your policy.

Broad Form ISO-CP1020

According to the same source named above, the Broad Form covers all of the basic perils, as well as:

• Glass Breakage
• Falling Objects
• Weight of Snow, Ice or Sleet
• Water Damage

Check your policy to find out what coverage applies to your policy.

Special Form ISO-CP1030

Finally, the same source named above, provides that the Special Form will usually include the coverage in the basic and broad form as well as

• Theft (carriers often require a monitored alarm for this coverage)
• Other Unspecified Causes of Loss (check the language of your policy for more specificity).

Call Hector Chavana Jr at 713-979-2941 to quote your commercial insurance anywhere in Texas.  Hector can usually combine your property coverage with liability insurance to make sure your business is fully protected.