Standard endorsements prescribed for optional use as part of the inland marine coverages section of the simplified language commercial property program of the Insurance Services Office (ISO) are described in this article. 

List of Property on File

This endorsement modifies the Commercial Articles form (CM 00 20 09 04) to cover property that is described individually on the list. The list must be dated and kept on file at the insured premises. Insurers must also sign and date the list. See Commercial Articles Coverage Form for more information.

Physicians and Surgeons Equipment Coverage Form Endorsements

Following are endorsements used to modify the physicians and surgeons equipment coverage form (CM 00 26 03 10). For more information, see Physicians and Surgeons Equipment Coverage Form.

Property Usually Carried by You CM 26 01 09 04

This endorsement amends the definition of covered property to include only the medical and dental equipment, materials, supplies, and books usual to the profession and usually carried by the named insured. Endorsement CM 26 01 also deletes the theft damage to buildings coverage extension that is on the physicians and surgeons equipment form; since the endorsement limits covered property to that which the named insured carries and deletes any reference to “premises,” this deletion makes sense. Finally, the endorsement deletes the coinsurance provision from the physicians and surgeons equipment coverage form; the covered property should then be insured for 100 percent of its value since it would be no longer subject to coinsurance calculations.

Additionally Covered Property CM 26 02 09 00

Four extensions of coverage for the Physicians and Surgeons Equipment Coverage form, with additional limits of insurance, may be purchased with this endorsement. The extensions are coverage for office equipment temporarily off-premises; reasonable and necessary extra expense coverage; personal effects owned by the named insured and personal property of others in the care of the named insured; and books of account and other records coverage. The extensions of coverage are subject to certain limits as stated on the endorsement. The off-premises coverage for office equipment is limited to thirty consecutive days and $2,500 in any one occurrence; extra expense coverage is limited to $2,500 also; the personal effects extension coverage and the books of account coverage are both subject to a limit of $2,500 in any one occurrence. CM 26 02 09 00 also deletes the coinsurance provision from the Physicians and Surgeons Equipment Coverage form and states that the limits for the coverage extensions are in addition to the limits of insurance shown in the declarations.

Artificially Generated Current Coverage CM 26 03 03 10

This endorsement has been changed with the 2010 form. It deletes the exclusion of coverage for loss caused by or resulting from electrical, magnetic or electromagnetic energy that damages, disrupts, disturbs or otherwise interferes with any electrical or electronic wire, device, appliance or system or device, appliance, system or network that uses cellular or satellite technology. The actual cause of loss must be from an occurrence (including a blackout or brownout) within one hundred feet of the named insured's premises. The previous policy just provided coverage for damage resulting from an artificial electrical current caused by an occurrence within 100 feet or a blackout or brownout. The new language is more specific and lists causes of damage and to what kind of equipment is covered, and then describes electrical, magnetic or electromagnetic energy. Electrical, magnetic or electromagnetic energy includes but is not limited to electrical current including arcing; electrical charge produced or conducated by a magnetic or electromagnetic field; pulse of electromagnetic energy, or electromagnetic waves or microwaves. As technology advances so must the descriptions in some endorsements so that it's clear what is being covered and what is not. Electronic computer or data processing equipment, unless used to control medical or dental equipment, however, is not covered by this endorsement. A minimum $1,000 deductible applies.

Nonreporting Form Endorsement CM 45 01 09 00

This endorsement changes the Film Coverage form (CM 00 45 09 04) from a reporting form basis to nonreporting basis. It includes a coinsurance provision, except for property in transit.

Jewelers Block Coverage Form

The following endorsements may be used to modify the Jewelers Block Coverage form (CM 00 59 03 10). For more information, see Jewelers Block Coverage Form.

Registered Mail Deductible CM 59 03 09 00

This endorsement specifies that a deductible of $25,000 per package is applied to registered mail shipments (except to Canada).

Limitation of Property Away from Premises CM 59 07 09 00

Except for individuals who are named in the endorsement, a limit of $5,000 applies to loss or damage to covered property off premises in the care, custody, or control of the named insured, any officer, director, employee, member of the named insured's organization, or any selling agent.

Proposal for Jewelers Block Coverage Form CM 59 90 09 00

This form must be completed for each location where coverage is desired. The form requests information that enables the insurer to know the exposures it faces while insuring the risk so that a proper premium is charged. Some of the questions that the endorsement asks deal with number of employees, loss experience, limits of insurance desired on and off premises, optional additional coverages desired, inventories of all property wherever located, and burglary protection of premises and vaults. It must be signed in duplicate by both the insured and the insurer, with one copy attached to the Jewelers Block Coverage form.

Mail Coverage Form

Following are endorsements used to modify the Mail Coverage form. For more information on this form and the endorsements, see Mail Coverage Form.

Flat Premium Per Shipping Package-First Class Mail, CM 60 02 09 00

Endorsement CM 60 02 allows the Mail Coverage form to be rated on a flat premium per package basis as set forth in the Commercial Lines Manual rules. Some of the areas of note on the endorsement include the definition of covered property and a discussion of valuation in the event of loss. Covered property means nonnegotiable securities the named insured sends to the owner, and fractional share or scrip certificates subscription warrants if their actual value in any one shipping package is not more than $150 on the date of mailing. The value of the covered property is its actual value but not less than its market value on the date of mailing. If the insurer pays any loss, all rights, title, and interest in the covered property is conveyed to the insurer.

Flat Premium Per Shipping Package-First Class Mail or Certified Mail (Limited Coverage) CM 60 03 09 04

Covered property under the CM 60 03 includes nonnegotiable securities the named insured sends to the owner, and fractional share or scrip certificates subscription warrants if their actual value in any one shipping package is not more than $150 on the date of mailing. Only property sent by first class mail or certified mail is covered. The value of the covered property is its actual value but not less than its market value on the date of mailing. If the insurer pays any loss, all rights, title, and interest in the covered property is conveyed to the insurer. The total number of shipping packages containing property covered under the endorsement sent during the preceding reporting period must be submitted within thirty days of the end of each reporting period. The number of packages sent by each type of mail must be listed separately.

Transfer Agents Mail CM 60 08 09 00

This endorsement broadens the Mail Coverage form to insure first class mail, certified mail, or registered mail sent by those acting as trustee under indentures governing debt securities, as transfer agents, or as registrars (or in any other corporate agency capacity) for the corporation issuing insured securities.

Negotiable Securities Sent Under Air Bill, CM 60 09 09 00

Endorsement CM 60 09 extends the Mail Coverage form to insure loss to negotiable securities sent under air bill of any carrier named in the declarations. The endorsement covers property sent between places in the United States, other than property sent to or from Alaska or Hawaii. The insured is required to declare to the carrier the actual value of the property but not less than its market value on the date of sending.

Securities Sent by the United States Treasury Department—Registered Mail, CM 60 10 09 00

Endorsement CM 60 10 extends the Mail Coverage form to insure loss to securities sent by the Treasury Department (or any other agency or corporation of the United States government) to the insured or to customers of the insured at the insured's direction. In order to be covered, the securities must be sent by registered mail. And, the insurance does not apply to mailings that the customer has insured. The insured must record all property covered by the endorsement prior to loss; if the property is sent without the insured's knowledge, the insured must record the mailing promptly after learning of it.

Accounts Receivable Form

The following endorsements may be used with the Accounts Receivable form (CM 00 66 09 04) to modify coverage. For more information, see Accounts Receivable.

Exclusion of Named Customers, CM 66 01 09 00

Commercial Lines Manual rules for the Accounts Receivable Coverage form allow the underwriter to exclude loss to records of accounts receivable of specified customers. The exclusion is accomplished by scheduling the name and address of each customer whose receivables are to be excluded in endorsement CM 66 01.

Duplicate Records CM 66 04 09 04

Rules for the accounts receivable coverage form allow rating credits in return for the insured's promise to duplicate records of accounts receivable and keep them within a separate fire division. The insured's duties—to duplicate a stipulated percentage of its records of accounts receivable and keep those duplicates for at least six months at a specified premises—are listed in the endorsement. The percentage and the premises are both to be shown in the declarations for the accounts receivable coverage form. Direct loss or damage caused by lightning is covered. Losses or damage caused by electrical or magnetic injury, disturbance, or erasure of electronic recordings resulting from programming errors, faulty machine instructions, or faulty installation or maintenance of data processing equipment or component parts are excluded.

Reporting CM 66 06 09 04

The Accounts Receivable Coverage form applies on a nonreporting basis. If an insured prefers that form to apply on a reporting basis (usually because the insured's receivables fluctuate in the course of the year), endorsement CM 66 06 is added.

Libraries, CM 67 02 09 00

When the Valuable Papers and Records Coverage form (CM 00 67 09 04) is issued to a library, manual rules call for endorsement CM 67 02 to be attached to the form. The endorsement excludes property while away from the insured's premises and in the care, custody, or control of a borrower or renter; loss resulting from failure of a borrower or renter to return property; vandalism or mutilation by anyone using the property within the insured's premises; unexplained disappearance; and loss that can be proven only by audit or inventory (although audit or inventory may be used to support determination of a loss).

Reporting CM 99 02 09 04

This endorsement is used with the Camera and Musical Instrument Dealers Coverage form (CM 00 21 09 04), and the Equipment Dealers Coverage form (CM 00 22 09 04) to convert them from nonreporting to reporting forms with premium adjustment based on values reported (which may be either property values or gross sales). Reports must be submitted within thirty days after the end of the reporting period, with penalties provided under the coinsurance and reports of value clauses, for not reporting, late reporting, or underreporting of values. If no required reports have been submitted, the amount paid by the insurer for any loss is reduced to 90 percent of the amount otherwise payable. If the insured has failed to submit timely reports at time of loss, the loss recovery is limited to the last reported value. If values are underreported, recovery of loss is reduced in proportion to the amount of the understatement of values. When reported values exceed the limit of insurance, premium is based on the actual values, but recovery of loss is limited to the limit of insurance. The endorsement also calls for rating adjustments at each anniversary using information furnished by the named insured within thirty days after each anniversary.

Equipment Dealers and Jewelers Block Coverage Forms

The following form may be attached to the Equipment Dealers Coverage form (CM 00 22 03 10) or the Jewelers Block Coverage form (CM 00 59 03 10).

New Business-Premium Adjustment CM 99 03 11 85

When a policy is written for a new business venture, there are no prior inventories of goods, just estimates of anticipated experience. This endorsement makes the original premium based on those estimates provisional and stipulates that a new application and proposal form will be completed by the insured within thirty days of the first six months of the coverage. Premiums for the final six months will be figured on the basis of the new information, with rates in effect when the coverage began being used by the insurer.

All Forms

The following endorsements may be attached to any of the Inland Marine Coverage forms.

Additionally Covered Property, CM 99 01 03 10

In this endorsement, a separate additional limit of insurance is shown on the declarations and signifies coverage (on-premises only) for the insured's furniture, fixtures, and office supplies; machinery, tools and fittings; patterns, dies, molds and models; and improvements and betterments. The improvements and betterments must be those put in at the expense of the named insured in a nonowned building. All such property must be insured to value or the coinsurance clause on CM 99 01 applies. Coverage applies only while this property is within the named insured's premises shown in the declarations.

If loss occurs to an improvement or betterment, an actual cash value settlement is calculated for property that is repaired or replaced at the insured's expense within a reasonable time (an undefined term). Property that is not repaired or replaced is valued based on a percentage of the property's original cost. This percentage is calculated by dividing the unexpired term of the rental agreement on the date of loss by the period from the date the property was installed to the rental agreement expiration. The insurer will not pay for property that is repaired or replaced at the expense of others for the benefit of the named insured. Though no specific mention of renewal option periods is made, if the rental agreement includes such an option, an insured can expect that length of time to be taken into consideration during the settlement.

Tentative Rate, CM 99 04 07 88

This endorsement may be added to any of the Commercial Inland Marine Coverage forms. CM 99 04 simply states that the rates used in the development of the premium are tentative and that the premium will be adjusted once the rates are promulgated. This adjustment is effective from the inception date of the applicable coverage.