COMMERCIAL PROPERTY
General Instructions
The Commercial policy provides property coverage using the forms and endorsements specified herein. This program contains the rules, classifications, and premiums for writing a Commercial policy.
Rule I Eligibility
1.1 Owner – A policy may be issued to the owner for real and/or personal property.
1.2 Tenant – A policy may be issued to a tenant for personal property. 1.3 Partnership – Corporation – A policy may be issued to a partnership
or corporation for real and/or personal property.
1.4 Mobilehomes, Trailer Homes, or Mobile Equipment – A policy may be issued to cover a Commercial exposure of mobile structures or equipment. A policy may be surcharged 100% of permanent structure rates.
1.5 Vacant or Unoccupied Property – Coverage for vacant or
unoccupied buildings or structures may be permitted. Coverage must be approved by the Company before binding. A surcharge of up to 100% may apply. No Theft or Vandalism coverage will be available and a minimum deductible of $1,000.00 will apply.
1.6 Supporting Coverage is required when the home premise is listed as the premise ID.
Rule II Earned Premium
- A Commercial Package Policy (property & liability) will have a minimum annual earned premium of $300.00.
- A Commercial Policy with only either property or liability will have a minimum annual earned premium of $200.00.
Rule III Policy Forms and Description of Coverages
The following are general descriptions of the coverages provided. The policy and forms should be consulted for exact conditions.
Riot or Civil Commotion Smoke
Vehicles Windstorm
3.2 Broad Perils – Rate is $1.00 per $1,000.00 of coverage. Covers against loss by:
Aircraft Collapse Explosion Falling Objects Fire
Glass Breakage (Limit $100.00 per window or $500.00 per occurrence) Hail
Lightning
Riot or Civil Commotion Smoke Sonic Boom Theft Vandalism Vehicles Water Damage
Weight of Ice, Sleet, or Snow Windstorm
3.3 Special Perils – Covers against all risks of physical loss with certain exceptions. Includes theft and vandalism coverage. Rate is $1.50 per $1,000.00 of coverage.
3.4 Buildings – Covers the building for perils selected. Replacement Cost provided with e2Value Estimator (REQUIRED) submission of value at 80-100%. Policy deductible applies.
3.5 Business Personal Property – Covers the personal property for perils selected. Replacement Cost optional. Policy deductible applies.
3.6 Builder’s Risk – Covers the described structure while being built or while being remodeled. Rate is $0.40 per $1,000.00 of coverage or a minimum of $50.00 per structure totally earned. Policy deductible applies. (Description, dimensions and cost estimator of project shall be included.) This coverage includes:
Additions Foundations
Fixtures and Equipment
Material, Equipment and Supplies Debris Removal
Removal of Covered Property up to five days Repairs
3.7 Personal Property Coverage (Household Goods) – Covers the described personal property using basic perils. Rate is $2.00 per $1,000.00 of coverage. Policy deductible applies.
3.8 Personal Property of Others – Covers the described personal property of others. Perils of the policy apply. Premium is rated on Business Personal Property Class Section. Policy deductible applies. 3.9 Loss of Earnings/Extra Expense/Loss of Rents Coverage –
Covers the loss of earnings, extra expense, and loss of rents of the described premise to the limit of the coverage shown. We cover 25% of the limit per month. Rate is $4.50 per $1,000.00 of coverage. No deductible applies.
3.10 Sonic Boom Perils – Covers loss by sonic boom with certain
exceptions. Rate is $0.30 per $1,000.00 of coverage. No deductible applies.
3.11 Sprinkler Leakage Perils – Covers loss caused by leakage or discharge of water from within a sprinkler system. Rate is $0.50 per $1,000.00 of coverage. Policy deductible applies.
3.12 Utility Interruption Perils – Covers loss caused by utility interruption caused by certain perils. Rate is $0.20 per $1,000.00 of coverage. Policy deductible applies.
3.13 Fire Department Service Charge – Covers Fire Department Service Charge when a fire department is called to protect property from covered perils. Rate is $2.00 per $100.00 of coverage. Minimum premium of $10.00. If the following increased amounts of coverage are purchased a discounted rate applies. When a limit of coverage and premium are shown on the declaration this coverage is excess.
Amount of Coverage Annual Premium
$ 5,000.00 $ 90.00
$10,000.00 $175.00
$15,000.00 $250.00
3.14 Money and Securities Endorsement – Covers loss of money and securities by destruction, disappearance or wrongful obstruction. Rate for loss inside the premises is $0.80 per $100.00 of coverage. Rate for loss outside the premises is $1.20 per $100.00 of coverage. Rate for loss inside and outside the premises is $1.40 per $100.00 of coverage. No deductible applies.
3.15 Glass Coverage – Coverage for breakage of glass, windows, showcases, or doors (size and description are required). Rate is $3.00 per $100.00 of coverage. No deductible applies.
3.16 Outdoor Sign Coverage – Coverage for outdoor signs (lighted or non-lighted). It must meet the Company’s approval of installation. Rate is $3.00 per $100.00 of coverage. Policy deductible applies.
3.17 Transit Coverage – Information needed is as follows: A. Distance
B. Products being Transported C. Value of Products
D. Limit of Coverage per Trip
Contact Company for Rate. Stated deductible applies.
3.18 Bailee’s Customers Insurance – Covers property of others while it is in the custody of the insured. Coverage applies at the insured’s premises and also to such property while in the insured’s custody away from the premise. Perils of the policy apply. Minimum premium is $50.00. Use applicable personal property rates. Policy deductible applies.
3.19 Refrigerated Food Products – We provide coverage on loss
resulting from the interruption of electrical services due to damage to power generating or transmission equipment. Rate is $1.20 per $100.00 of coverage. $250.00 deductible applies.
3.20 Valuable Papers and Records/Electronic Media and Records – Coverage is provided for expenses incurred to research, obtain necessary data, replace, reproduce, or restore commercial operation records damaged or destroyed by an insured peril. Rate is $4.00 per $1,000.00 of coverage. No deductible applies.
3.21 Employee Dishonesty – Policy deductible applies. Coverage is available for dishonest or fraudulent acts of the insured’s employees at limits stated below:
$ 5,000.00 Coverage – $ 59.00 Additional $ 4.00 per $1,000.00 $10,000.00 Coverage – $ 77.00 Additional $ 6.00 per $1,000.00 $25,000.00 Coverage – $115.00 Additional $ 9.00 per $1,000.00 $50,000.00 Coverage – $159.00 Additional $11.00 per $1,000.00 3.22 Ordinance or Law Extension – Coverage is extended on designated
buildings or structures. This endorsement does not increase the limit of insurance. This endorsement provides coverage for Building-Increased Loss, Demolition and Debris Removal, and Building-Increased Cost of Construction. Rate is $0.15 per $1,000.00 of coverage. Policy deductible applies.
3.23 Commercial Pac
The Commercial Pac is an optional “package endorsement” that may be added to a commercial property policy. Coverage provided for Loss of Earnings/Extra Expense, Employee Dishonesty, Outdoor Sign Coverage, Fire Department Service Charge, Utility Interruption, Refrigerated Food Products, Money and Securities (on/off premises), Outdoor Private Power and Light Poles, Excess Debris Removal, and Valuable Papers and Records/Electronic Media and Records. Base premium is $180.00. Deductible applies unless stated otherwise. Additional limits of coverage may be purchased for the stated premium (Company option).
Ineligible
- Properties that are for sale, vacant or unoccupied - Habitational Risks (Contact company)
(Increase over base) Base Limit Coverage Rates per $1,000.00 $10,000.00 Loss of Earnings/Extra Expense $ 4.50 $ 2,000.00 Employee Dishonesty $ 7.00 $ 3,000.00 Outdoor Sign Coverage $30.00 $ 3,000.00 Fire Department Service Charge $20.00 $ 5,000.00 Utility Interruption $ 0.20 $ 2,000.00 Refrigerated Food Products $12.00 $ 2,000.00 Money and Securities (on/off premises) $14.00 $ 3,000.00 Outdoor Private Power and Light Poles $ 2.50 $ 2,000.00 Excess Debris Removal $ 3.50 $ 2,000.00 Valuable Papers and Records/ $ 4.00
Electronic Media and Records
Rule IV Binding Authority – You may bind an acceptable Commercial risk up to $1,000,000.00; risks in excess of these limits require advance authorization from the Company.
Rule V Deductibles – A policy may be written with one of the following deductible options at the premium credits or charges shown below:
Rule VI Surcharges
6.1 The Company may credit or surcharge Real or Personal Property up to 100% of listed rates after inspection and rating.
6.2 Woodstoves – Company may surcharge up to 50% of premium if a woodstove is on the insured premises, minimum premium $40.00/unit. Rule VII Credits
7.1 Credits – 5% to 25% may be given for an approved fire protection device (Company option).
7.2 Buildings – Within the city or village of Preferred and Protected or below may be eligible for a 5% to 25% credit (Company option). Rule VIII Rates
Loss of Earnings $4.50 per $1,000.00 of Coverage
Glass Coverage $3.00 per $ 100.00 of Coverage
Outdoor Sign Coverage $3.00 per $ 100.00 of Coverage
Builders Risk $0.40 per $1,000.00 of Coverage
…….…..…or minimum of $50.00
Broad Form $1.00 per $1,000.00 of Coverage
Special Form $1.50 per $1,000.00 of Coverage
Vandalism $0.20 per $1,000.00 of Coverage
Theft $0.30 per $1,000.00 of Coverage
Bailee’s Customer Insurance Applicable Property Rates Apply Replacement Cost Personal Property 15% Personal Property Premium Rule IX Equipment Breakdown Coverage
9.1 Premiums included on all Commercial policies – No charge. 9.2 Coverage provided for loss to covered equipment. Equipment
Breakdown Coverage will eliminate potential gaps in coverage. Common coverages include:
- Mechanical Breakdown
- Rupturing or bursting of moving parts of machinery caused by centrifugal force
- Arching or electrical currents other than lightning
- Explosion of steam boilers, steam pipes, steam turbines, or steam engines or damage caused by an occurrence or condition within hot water boilers or heaters
9.3 Coverage will apply to all locations described on the policy
declarations and is subject to the policy limits shown for coverage.
9.4 Deductibles – Commercial policy deductible applies unless specifically stated.
9.5 Exclusions – Equipment undergoing testing is not an absolute exclusion; only loss caused by certain specified destructive tests are excluded rather than all types of tests of covered equipment.
9.6 Conditions – Equipment Breakdown Coverage is also subject to a condition that allows suspension of coverage for loss caused by an accident to covered equipment that is discovered to be in or exposed to a dangerous situation or condition.
Rule X Functional Replacement Coverage
10.1 Intent and Purpose – To provide a method of insuring older, ornate, or custom buildings for less than estimated replacement cost with the benefit of no depreciation taken on partial losses.
10.2 Definition – The amount it would cost to repair or replace the
damaged building with less costly common construction materials and methods which are functionally equivalent to obsolete, antique, or custom construction materials and methods used in the original construction of the building.
10.3 Eligibility
A. Buildings must have better than average construction and maintenance.
B. Pride in ownership
C. Building must have a minimum electrical service of 200 amps (fuses are unacceptable).
D. Modern/updated plumbing and heating (contact Company regarding solid fuel units for eligibility).
E. Maintained and meets all building code requirements. F. Replacement cost estimator required from e2Value. 10.4 Ineligible Risks
- Mobilehome or habitational type risks - Vacant or unoccupied properties
- Any building or structure containing any type of asbestos or slate siding
10.5 Inflation guard (4% annually) will be applied to scheduled structures.
10.6 Rating – Rate factor applies to Commercial Property rate.
Guidelines Rate
Building Insured at 100% of Replacement 0.90 Building Insured at 90% of Replacement 0.95 Building Insured at 80% of Replacement 1.00 Building Insured at 70% of Replacement 1.10 Building Insured at 60% of Replacement 1.20 Building Insured at 50% of Replacement 1.30
COMMERCIAL PROPERTY COVERAGE RATES $500.00 DEDUCTIBLE
TYPE OF PROPERTY FRAME CONTENTS BRICK CONTENTS
AGRICULTURAL EQUIPMENT DEALERS 8.05 8.05 6.95 6.95
ANTIQUE STORES 8.75 12.20 7.50 10.80
APARTMENT BUILDINGS 2.75 2.50 2.50 2.30
APPLIANCE STORES 7.60 7.60 6.95 6.95
AUTO PARTS STORES 10.40 10.40 9.00 9.00
AUTOMOBILE DEALERS 10.80 10.80 9.40 9.40
BAIT SHOPS 8.70 8.70 7.30 7.30
BAKERIES 10.80 10.80 9.40 9.40
BANKS 4.15 4.15 3.85 3.85
BARBER & BEAUTY SHOPS 7.50 7.50 6.80 6.80
BEVERAGE STORES 8.70 8.70 8.05 8.05
BOOK, MAGAZINE & NEWSPAPER STORES
6.65 6.65 5.90 5.90
BOWLING ALLEYS 14.60 15.95 12.50 14.60
CAMERA & COMPUTER SALES 8.35 13.55 6.95 13.55
CAR WASHES 10.45 10.45 9.00 9.00
CARPENTER TOOLS & EQUIPMENT 8.35 8.35 7.20 7.20
CHURCHES 3.70 3.70 3.30 3.30
CLOTHING STORES 7.50 7.50 6.95 6.95
CONCRETE PRODUCTS 11.10 11.10 8.35 8.35
CONDOMINIUMS 2.75 2.50 2.50 2.30
CONTRACTORS MOBILE EQUIPMENT 10.10 10.10 8.70 8.70
CONVENIENCE STORES 8.35 8.35 7.60 7.60
DAY CARE CENTERS 10.80 10.80 9.40 9.40
DOG KENNELS 6.95 6.95 6.10 6.10
DWELLINGS 2.75 2.50 2.50 2.30
FARM MACHINERY DEALERS 10.40 10.40 9.00 9.00
FEED MILLS 27.80 16.70 12.50 16.70
FERTILIZER & CHEMICAL DEALERS 12.50 12.50 11.10 11.10
FLOOR COVERING STORES 8.75 8.75 7.80 7.80
FLORISTS 6.95 6.95 6.25 6.25
FRUIT & VEGETABLE DEALERS 9.70 9.70 8.75 8.75
COMMERCIAL PROPERTY COVERAGE RATES $500.00 DEDUCTIBLE
TYPE OF PROPERTY FRAME CONTENTS BRICK CONTENTS
FUNERAL HOMES 4.00 4.00 3.55 3.55
FURNITURE STORES 8.35 13.55 6.95 13.55
GARAGES 12.20 12.20 10.80 10.80
GENERAL STORES 8.35 11.10 6.95 11.10
GIFT & CRAFT SHOPS 7.50 7.50 6.80 6.80
GOLF COURSES 10.80 10.80 9.40 9.40
GRAIN BINS & ELEVATORS 5.40 5.40 4.75 4.75
GROCERY STORES 9.40 9.40 8.65 8.65
HALLS 10.80 10.80 9.40 9.40
HARDWARE STORES 10.80 10.80 9.40 9.40
HEALTH OR EXERCISE FACILITIES 9.40 9.40 8.90 8.90
HEATING & AIR CONDITIONING STORES 8.35 8.35 7.60 7.60
HOME IMPROVEMENT STORES 9.70 9.70 8.30 8.30
INTERIOR DECORATOR STORES 9.70 9.70 8.35 8.35
JANITORIAL SERVICES 6.25 6.25 5.50 5.50
JEWELRY STORES 8.35 13.55 6.95 13.55
LAUNDRIES & DRY CLEANERS 5.40 5.40 4.85 4.85
LIBRARIES 9.10 9.70 8.35 8.35
LOGGING & LUMBER 12.50 12.50 11.10 11.10
MANUFACTURING (LIGHT) 11.80 11.80 10.40 10.40 MINI-WAREHOUSES 6.60 6.60 6.10 6.10 MOBILEHOME PARKS 9.40 9.40 8.90 8.90 MOVIE THEATERS 12.50 12.50 11.10 11.10 MOTELS/HOTELS 18.60 18.65 15.85 15.85 MUSIC STORES 8.35 13.55 6.95 13.55 OFFICE BUILDINGS 4.15 4.15 3.75 3.75 PET STORES 8.35 11.10 6.95 11.10 PLUMBERS 10.80 10.80 9.40 9.40 RECREATIONAL FACILITIES 9.40 9.40 8.90 8.90 RESTAURANTS 12.20 12.20 10.80 10.80 SCHOOLS 5.80 5.80 5.30 5.30
SHOE STORES & SHOE REPAIR STORES 5.60 5.60 5.20 5.20
SPORTING GOOD STORES 9.50 9.50 8.70 8.70
STABLES 11.10 11.10 9.70 9.70
STORAGE 7.60 7.60 6.60 6.60
STORAGE HEAT 9.00 9.00 7.60 7.60
TAVERNS 12.50 12.50 11.10 11.10
TAXIDERMIST 4.75 4.75 3.85 3.85
TENTS OR CANOPIES 21.20 21.85 N/A N/A
VACANT BUILDINGS – USE RATE FOR LAST USE – 50%-100% SURCHARGE
