March 31, 2016

The insured is a business that installs windows and doors, which includes a shop and a showroom. The displays that are in the showroom were damaged from the fire. The insured used the displays for trade shows he goes to throughout the year. The insured's commercial property policy contains an additional $10,000 coverage for salesperson samples. He is going to max out his business personal property limit with just tools and office equipment. These displays are actually window and door displays that are built in a custom display to show off the different window layouts and manufactures. There are probably fifteen or so displays, and most are eight feet wide by six feet tall. These sit in the showroom roughly fifty weeks out of the year and get taken to tradeshows when needed.

Since they were setup in the showroom during the fire, would these displays be considered salesperson samples or business personal property?

Illinois Subscriber

The endorsement for salespersons samples states that coverage does not apply to property located in or on the building described in the declarations. Since they were set up in the showroom at the time of the fire (presumably in the building described in the declarations), they would not be covered by this endorsement. They could still be considered business personal property under the commercial property policy (unless wording in the policy otherwise excludes it).

This premium content is locked for FC&S Coverage Interpretation Subscribers

Enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.

  • Quality content from industry experts with over 60 years insurance experience, combined
  • Customizable alerts of changes in relevant policies and trends
  • Search and navigate Q&As to find answers to your specific questions
  • Filter by article, discussion, analysis and more to find the exact information you’re looking for
  • Continually updated to bring you the latest reports, trending topics, and coverage analysis