The court cases cited in the Dec Page deal with several issues. In a case from the United States Court of Appeals, Sixth Circuit, the issue was whether a driver who was killed in an auto accident was an employee of the insured at the time of the accident. The insurer wanted to use the Motor Carrier Act of 1980 to supply a definitive definition of employee since the definition in the insurance contract lacked such certainty. Coverage for consequential damages was the issue in a case from the U.S. Fourth Circuit Court of Appeals. Are damages for aggravation and inconvenience where the insurer refused to defend the insured from potential liability arising from a lawsuit recoverable from the insurer? And, should prejudgment interest accrue on the attorney fees incurred by the insured who was forced to obtain alternative representation when the insurer declined defense? The final case discusses the insurer's duty to defend. The U.S. District Court for the Western District of Michigan used the language of the complaint against the insured to decide if the insurer was required to defend the insured in accordance with the policy language.

Questions and Answers

If a construction contractor renews a builders risk policy for one year but then completes construction after three months, will the insurance provider reimburse the contractor pro-rated premium? See Builders Risk Pro Rata Cancellation Question.

Are employee tools covered under a commercial property policy's personal property of others provision? See Theft of Employee Tools and Care, Custody, or Control Question.

Are bats considered vermin, birds, or rodents under a commercial property special causes of loss form? See Bats as Vermin under CP 10 30.

Business Income and Extra Expense Endorsements

Standard business income and extra expense endorsements available for general use as part of the simplified language commercial property program of Insurance Services Office are listed in this article, along with a brief description of the coverages provided by each. The article has been reviewed and updated to reflect changes and additions made to the ISO Commercial Property program through 2014.

See Business Income and Extra Expense Endorsements.

Personal Liability Supplement

ISO updated the Dwelling Program effective July 1, 2014. The dwelling property forms offer no liability coverage the way the homeowners form does; therefore, liability must be added by use of a separate form.

See Dwelling Program Personal Liability Supplement.

Financial Institution Kidnap/ Ransom and Extortion Policy

The Financial Institution Kidnap Ransom and Extortion Policy has been updated. The policy provides coverage for property surrendered as ransom for kidnapped persons, expenses incurred due to a kidnapping or detention of an insured, or for ransom payments that may be lost in transit to persons demanding the ransom.

See Financial Institution Kidnap/Ransom and Extortion Policy.