AAIS files property coverage for jumbo accounts

Rough Notes, Jul 2001

The American Association of Insurance Services (AAIS) has filed an expanded version of its Commercial Output Program called "COP-XL" that is intended to allow member insurers to write accounts with huge property values. COP-XL provides very broad commercial property and inland marine coverage on a blanket, open perils basis in a single policy. It is being filed countrywide as a separate line of insurance.

COP-XL differs from the traditional COP in several ways, including:

- It integrates equipment breakdown coverage into the base property form.

- It provides a broader range of supplemental inland marine coverages at higher limits.

AAIS will continue to provide the standard COP and plans to revise it this year to include some of the new coverages introduced in COP-XL. Among the new coverages are:

- Web site interruption, which provides up to $50,000 for lost earnings and extra expenses when use of a Web site hosted off-premises is interrupted because of damage by an insured peril at the host location.

- Overseas transit and location, which provides up to $100,000 for sales exhibits, sales representative samples, and personal effects of employees and contractors that are lost, damaged or destroyed by an insured peril while they are temporarily outside of the standard coverage territory.

- Broad crime coverage options, which offer two choices: a "loss sustained" form under which the insurer pays recovery for losses that actually occurred during the policy period and a "discovery" form under which the insurer pays recovery for any loss discovered during the policy period. Both forms offer a choice of six crime coverages: employee fraud and dishonesty; computer and telecommunications fraud; counterfeit currency, money and travelers checks; forged or altered charge cards, credit cards, and debit cards; forged and altered checks; and money and securities.

More information is available by e-mail at bobs@AAISonline.com or by calling (800) 564-AAIS.