Prior to the Insurance Services Office's (ISO) introduction of the 1986 inland marine insurance program, furriers block insurance was available under standard forms administered by ISO. That organization withdrew this coverage with the revamping of its standard inland marine program effective in January, 1986. Today, the coverage is available in the specialty coverages market.

Although furriers block is no longer available under ISO standard policies, most companies writing furriers block coverage do so using forms developed from the one-time standard policy. The following is a discussion of furriers block coverage as ISO last issued the policy. It may be used as a standard for comparing the furriers block forms available today.

There was no overlapping between furriers block and furriers customers insurance in the ISO program. The furriers customers policy covered only property of customers left with the insured—not the insured's own property—while the furriers block form specifically excluded property of others accepted for storage.

Today, in the non-standard market, coverage is written on a mono-line basis, so all the terms and conditions that pertain to the coverage are found within the policy.

Eligible Insureds—Property Covered

Furriers Block coverage is written for dealers in property consisting principally of furs, fur garments and garments trimmed with fur. Businesses dealing exclusively in raw or dressed skins and those who manufacture exclusively for the fur trade are generally ineligible. In effect, therefore, the furriers block policy is intended primarily for wholesale and retail furriers. Department stores with fur departments may sometimes be eligible, depending on the security and loss controls in effect.

Generally, property covered by furriers block insurance is the inventory of the business; “stock in trade consisting principally of furs, fur garments, garments trimmed with fur, and accessories pertaining thereto.” (quoting from the ISO form) This expression is broad enough to include miscellaneous items of stock not made of fur that a furrier might carry for the accommodation of its customers. The value of any such stock must, of course, be included in determining the amount of insurance required. Some insurers' rules permit these miscellaneous items to be excluded by substituting the word “only” for “principally.” This same applies when coverage is written for the fur department in a department store, thus eliminating from coverage any other merchandise of the store. Some underwriters will cover only fur garments under the furriers block policy, leaving non-fur items to be covered under the package policy.

In the ISO program, coverage applied to property of the insured and also to property sold but not delivered. Property of others engaged in the trade was covered to the extent to which the insured might be liable, including the insured's interest in that property for labor and materials.

Common exclusions found in furriers block policies are: (a) property of others accepted by the insured for storage; (b) property rented or leased or sold on the installment plan, after delivery; (c) property in transit via the Panama Canal and import shipments until they had arrived at the insured's premises or other place of final destination used by the insured; (d) animals (anywhere) and furs, pelts, skins or parts on premises of ranchers, breeders, growers or trappers; (e) property while at any exhibition promoted or financially assisted by any public authority or any trade association; and (f) property worn or in their custody to be worn by the insured, officers, employees, etc., in the fur trade, or by members of their families, relatives or friends. This exclusion does not apply to property being modeled on the insured's premises or in exhibition not otherwise excluded.

Note that the types of property not covered by the furriers block form were, and still are, readily insurable under other contracts.

Property in transit, in care of public or common carriers or of postal authorities was covered only under certain conditions in the ISO policy. Unless registered (note that this did not include certified mail), property sent by mail was not covered. Also, property sent by express, railroad, waterborne, air, motor carrier or freight forwarders was not covered unless:

1.     full value was declared on shipments if less than $200;

2.     a declaration of 25% of the value of the shipment or $200, whichever was greater, was made if the shipment was valued at more than $200. If express shipment was by Railway Express Agency, the merchandise must have been designated “furs” on the carrier's receipt;

3.     the carrier operated exclusively as a merchants parcel delivery service; or

4.     property was in custody of air carriers' passenger baggage service for transportation under air freight tariff with delivery to passenger at destination. In this case, property is considered “accompanied baggage” and is subject to the limit of liability stated in the policy for property in locations other than those scheduled.