ISO form and endorsement changes approved by individual states through December 1996

Rough Notes, Feb 1997 by Kowatch, Diana

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COUNTRYWIDE

01/97 revisions to the businessowners policy

Major changes have been made to the BOP program. In the area of eligibility, the changes include but are not limited to the following: Eligibility has been revised to increase the maximum square footage from 15,000 to 25,000.

The maximum gross sales limit has been increased from $2,000,000 to $3,000,000.

An increase in the number and types of classes of business now eligible for the BOP program include many of the artisan-type contractors, limited cooking and fast foodtype restaurants (square footage on this class is 7,500), convenience stores with gasoline pumps, and laundry/dry cleaners.

Rating for the contractors classes will be split between property and liability with a separate rating basis for each. Other classes will continue to use a single rating base for the present.

The base property deductible has been increased to $500 to mirror the commercial property program with an option to decrease to $250. Program coverage enhancements include:

full exterior glass coverage increase in the limit for newly acquired personal property from $10,000 to $100,000 per location now included is $5,000 of accounts receivable coverage now included is $5,000 of valuable papers coverage

now included is $5,000 or 5% of building limit for increased cost of construction coverage as a result of ordinance or law

Options are now available to increase or add the following coverages:

a $2,000,000 limit of liability option has been added to the liability coverage option to add contingent business income

option to increase valuable papers over the $5,000 basic option to increase accounts receivable over the $5,000 basic option to add utility services equipment failure

additional options available for money and securities coverage options to add professional liability for a limited number of business types

The changes listed above are only a portion of the overall changes to the BOP program. Please review the entire program carefully before using.

Listed below under the individual states will be those that have approved the above revisions. This text will not be repeated but will refer back to this Countrywide section.

1996 revisions to the general liability multistate endorsements A number of important revisions have been made to the commercial general liability program including:

Whenever the named insured in one policy is also an additional insured under another policy, the first policy will be excess. Two new endorsements have been developed -Amendment of Other Insurance Condition (Occurrence Version), CG 00 55, and Amendment of Other Insurance Condition (ClaimsMade Version), CG 00 56. Also, two claims-made endorsements have been developed: CG 27 10, Supplemental Extended Reporting Period Endorsement With Amendment of Other Insurance Condition, and CG 27 11, Supplemental Extended Reporting Period Endorsement For Specific Accidents Products, Work or Locations With Amendment of Other Insurance Condition. The claims-made endorsements replace two existing ones which have been withdrawn: CG 27 01, Supplemental Extended Reporting Period Endorsement; and CG 27 04, Supplemental Extended Reporting Period Endorsement For Specific Accidents Products, Work or Locations.

New endorsements have been developed to allow the addition of additional insureds without being requ*ed to name each one: GL 20 33, Additional Insured-Owners, Lessees or Contractors-Automatic Status When Required In Construction Agreement With You; and CG 20 34, Additional InsuredLessor of Leased Equipment-Automatic Status When Required In Lease Agreement With You.

Clarifications in the form of revised titles have been made regarding the usage of additional insured endorsements: CG 20 09, Additional Insured-Owners, Lessees or Contractors, Scheduled Person or Organization (For Use When Contractual Liability Coverage Is Not Provided To You In This Policy); CG 20 10, Additional Insured-Owners, Lessees or Contractors-Scheduled Person Or Organization.

New endorsement, CG 00 54Amendment of Pollution ExclusionException for Building Heating Equipment. This endorsement provides coverage for bodily injury resulting from the release or escape of smoke, fumes, vapor or soot from heating equipment.

Endorsement CG 21 37, Exclusion-Employees As Insureds, has been revised to clarify that coverage is excluded even in aircraft, auto or watercraft situations.