IH 00 85 declares that the insurer will pay for direct physical loss of or damage to covered property from any of the covered causes of loss. The coverage form applies to direct physical damage and not to any consequential losses, or loss of use. The covered causes of loss are said to be all risks of direct physical loss or damage except those causes of loss listed in the exclusions section of the policy; in other words, IH 00 85 is an all risk or open perils type coverage form, which is in keeping with an inland marine form.

The property that is covered under this form is the personal property of others that is in the care, custody, or control of the named insured.  IH 00 85 does list property that is not covered and this list includes the following: accounts, bills, currency, records, deeds, money, securities, or stamps; animals; autos and trailers; aircraft and watercraft; furs or garments trimmed with fur; jewelry, watches, precious or semi-precious stones, gold, silver, bullion, or other precious metals; property while in the custody of other bailees (for example, if the insured is a dry cleaner and sends customers' shirts off-premises to another dry cleaning company for processing); property while waterborne; property that the named insured has accepted for storage (unless the declarations page lists this as a covered exposure); property shipped by mail; or contraband or property in the course of illegal transportation or trade.

IH 00 85 also provides some additional coverages for the insured.

The coverage form covers loss or damage resulting from misidentification of the covered property.

It pays for expenses to remove debris of covered property caused by or resulting from a covered cause of loss that occurs during the policy period. There are some restrictions on this coverage that should be noted. The expenses will be paid only if they are reported to the insurer in writing within 180 days of the date of loss. The most that will be paid is twenty-five percent of the amount paid for the direct physical loss plus the deductible. Payment under this additional coverage does not increase the applicable limit of insurance, but if the debris removal expense exceeds the amount payable under the twenty-five percent limitation, the insurer will pay up to an additional $5,000 in any one occurrence. And, this additional coverage does not apply to costs to extract pollutants from land or water.

Under another additional coverage, IH 00 85 does pay for the expense to extract pollutants from land or water if the discharge or dispersal or escape of the pollutants is caused by a covered cause of loss that occurs during the policy period. The most to be paid under this coverage is $10,000 for the sum of all covered expenses during each separate twelve month period of the policy; this is in addition to the limit of insurance. What is not covered under this part of IH 00 85 is the cost to test for, monitor, or assess the existence or effects of pollutants.

The final additional coverage is for preservation of property. If it is necessary to move covered property from the described premises to preserve it from loss or damage by a covered cause of loss, IH 00 85 pays for any direct physical loss or damage to that property while it is being moved or while temporarily stored at another location. For the coverage to apply, the loss or damage must occur within thirty days after the property is first moved. This additional coverage does not increase the limit of insurance.

IH 00 85 has three sections of exclusions.

The first set is preceded by the admonition that the exclusions apply regardless of any other cause or event that contributes concurrently or in any sequence to the loss; in other words, an attempt to prevent concurrent causation. This set of exclusions include: ordinance or law; governmental action; nuclear hazard; and war and military action.

The second set of exclusions lists twelve causes of loss that are not covered by IH 00 85. Theft from any unattended vehicle is not covered unless, at the time of the theft, the windows, doors, and compartments of the vehicle were closed and locked; visible signs of forced entry are required to circumvent this exclusion. IH 00 85 does not apply to delay, loss of use, loss of market, or any other consequential loss. Unexplained disappearances and a shortage found upon taking inventory, as well as dishonest or criminal acts by the named insured, employees or authorized representatives are all excluded under this form. IH 00 85 excludes loss or damage caused by pollution. Losses to covered property caused by processing or work upon the property are not covered, but the insurer will pay for direct loss or damage caused by a resulting fire or explosion. Artificially generated current creating a short circuit or other electric disturbance within an article covered under the bailees coverage form is another listed exclusion. If the insured voluntarily parts with any covered property due to any fraudulent scheme, trick, device, or false pretense, there is no coverage; and, in connection with this exclusion, loss due to unauthorized instructions to transfer property to any person or to any place is excluded. Neglect of an insured to use all reasonable means to save and preserve property from further damage at and after the time of loss prevents coverage under IH 00 85. The cost to research, replace, or restore converted data, programs, or instructions used in any data processing operations is also not covered.

The final set of exclusions includes six causes of loss, but the policy declares that if loss or damage by a covered cause of loss results from these items, the loss or damage caused by that covered cause of loss will be covered. The exclusions here are: weather conditions; acts or decisions, including the failure to act or decide, of any person, group, organization, or governmental body; wear and tear; any quality in the property that causes it to damage or destroy itself, hidden or latent defect, or gradual deterioration; mechanical breakdown; and loss caused by insects, vermin, or rodents.

The most that the insurer will pay for loss or damage in any one occurrence is the applicable limit of insurance shown in the declarations, IH DS 85 12 00. As for the deductible, the insurer will not pay for loss or damage in any one occurrence until the amount of the adjusted loss or damage before applying the applicable limit of insurance exceeds the deductible shown in the declarations. The deductible does not apply to covered property in transit.

IH 00 85 replaces the valuation general condition that is found on the commercial inland marine conditions form, CM 00 01. The valuation clause now says that the value of covered property will be the least of four listed amounts. The four are: the amount for which the named insured is liable; the actual cash value of the lost or damaged property; the cost of reasonably restoring the property to its condition immediately before the loss; or the cost of replacing the lost or damaged property with substantially identical property. The value of the covered property includes the value of labor, materials, or services furnished or arranged by the named insured. And, in the event of loss or damage, the value of property will be determined as of the time of loss or damage.

IH 00 85 lists two other conditions that are added to those found on the commercial inland marine conditions form and the common policy conditions form (IL 00 17 11 98). IH 00 85 states that it covers property wherever located within the United States, Puerto Rico, and Canada , as well as property being shipped by air within and between points in these countries. IH 00 85 also discusses the adjustment of loss by the named insured. When the total loss or damage covered by IH 00 85 is not more than $500 in any one occurrence, the named insured is given permission to settle and pay the loss; the insurer will then reimburse the insured for the payment within thirty days after the insurer receives the statements of loss. The insured is required to fully comply with all the provisions of IH 00 85 in arriving at the settlement, and promptly send completed statements of loss on the forms supplied by the insurer.

IH 00 85 has three definitions.

Pollutants are any solid, liquid, gaseous or thermal irritant or contaminant, including waste.

Specified causes of loss are the following: fire; lightning; explosion; windstorm or hail; smoke; aircraft or vehicles; riot or civil commotion; vandalism; leakage from fire extinguishing equipment; sinkhole collapse; volcanic action; falling objects; weight of snow, ice or sleet; and water damage. The coverage form notes that falling objects does not include loss or damage to personal property in the open, or to the interior of a building or structure, or property inside a building or structure, unless the roof or an outside wall of the building or structure is first damaged by a falling object.

Water damage means accidental discharge or leakage of water or steam as the direct result of the breaking or cracking of any part of a system or appliance containing water or steam.

The declarations page, IH DS 85 12 00, is the introductory page to the bailees customers coverage form. IH DS 85 lists five areas to which the coverage form applies, and states limits of insurance for the five areas. Area one is the property at the named insured's premises; area two is for the property away from the premises; the third area is property in transit; the fourth deals with property in storage at the named insured's premises; and the final area is all covered property in any one occurrence.

There is also a spot on the dec page in which the insured can list the deductible upon which the insured and the insurer have agreed.

The next part of IH DS 85 pertains to rates and premiums. There is a place to list the premium if the coverage is on a nonreporting basis. There is also a place for the premium under a reporting basis, with spaces for a deposit premium and a minimum premium. Also listed are spots for the reporting period and premium adjustment period. The premium base and rates per $100 also have a space on IH DS 85.

The final section of the declarations page is an open space where any special provisions modifying the bailees customers coverage form are listed.