Summary: Three basic categories of property are insured under the Physicians and Surgeons Equipment Coverage Form, (CM 00 26 01 13): professional medical, surgical, and dental equipment; office equipment; and the tenant-insured's interest in improvements and betterments. As with the rest of the commercial inland marine program of the Insurance Services Office (ISO), the property is insured on an open perils basis, subject to the exclusions listed on the form.

Topics covered:

Eligibility

Insuring agreement

Property not covered

Covered causes of loss

Additional coverage

Coverage extension

Exclusions

Limits and deductible

Conditions

Definitions

Endorsements

Eligibility

 The Physicians And Surgeons Equipment Coverage Form is available for use to insureds in the medical or dental profession with the following exceptions: hospitals, dealers in medical equipment, medical schools, clinics, and similar risks. Doctors who share facilities while maintaining individual practices are not considered clinics or similar risks and therefore are eligible for use of the form; however, the eligibility rules state that in such instances all property not jointly owned will be rated separately. If the insureds are residents of the same household, though, this rating rule does not apply.

 Insuring Agreement

A. Coverage

We will pay for direct physical loss of or damage to Covered Property from any of the Covered Causes of Loss.

1.Covered Property, as used in this Coverage form, means:

a.Your medical and dental equipment, materials, supplies and books usual to the medical or dental profession.

At your option this form covers similar property of others used by you in your profession.

b.Your office equipment, including furniture and fixtures, while at your "premises."

c.Your interest in improvements and betterments meaning fixtures, alterations, installations or additions to the "premises" made at your expense but that you cannot legally remove.

This coverage only applies if you do not own the building in which your "premises" are located.

 Analysis

 Although the title of this form is Physicians and Surgeons Equipment Coverage, the definition of "covered property" includes dental as well as medical equipment. It also covers supplies and books usual to the profession, as well as any property of others used in the profession, such as a leased X-ray machine.

 Covered property (other than office equipment or improvements and betterments) is insured both while on and off the premises. Through the Property Usually Carried By You endorsement, (CM 26 01 09 04), which is discussed in the Endorsements section of this article, the "covered property" definition can be modified to include only property usually carried by the physician, surgeon, or dentist.

 The definition of "office equipment" includes furniture and fixtures located at the insured premises ("premises" is defined as the portion of the building at the stated address that is occupied in the practice of the insured's profession). Limited coverage is available for these items off premises by way of an endorsement for Additionally Covered Property, (CM 26 02 09 00), which is described in the Endorsements section of this article.

 Improvements and betterments are fixtures, alterations, installations, or additions made at a tenant-insured's expense but that are not legally removable. A modification to a lighting system in an examination room would fall into this category.

 Property Not Covered

 2.Property Not Covered