September 5, 2016

Summary: The Insurance Services Office (ISO) provides a form that can be used to insure radio and television towers and related equipment. The form is IH 00 77 06 14, Radio And Television Towers And Equipment Coverage Form. When combined with Commercial Inland Marine Conditions Form, CM 00 01 09 04, and Common Policy Conditions Form, IL 00 17 11 98, to form a policy, the insured who is engaged in radio or television broadcasting will have very broad coverage.

Topics covered: Introduction Underwriting considerations Insuring agreement; covered property Property not covered; covered causes of loss Additional coverage Optional coverages Exclusions Limits of insurance; deductible Additional conditions Definitions Endorsements

Introduction

Television and radio towers have captured the public imagination since Monsieur Eiffel built his tower (324 meters high) in Paris in the latter part of the nineteenth century. Although not originally built as a radio tower, but to honor the centenary of the French Revolution, the idea that these structures could be used for something other than a tourist attraction caught on. Now, these structures have become almost a symbol of the ability to build ever higher and more elaborate structures.

Insurance Services Office (ISO) has developed the Radio And Television Towers And Equipment Coverage Form, IH 00 77 06 14, to cover these structures. The form can be combined with Commercial Inland Marine Conditions Form, CM 00 01, and Common Policy Conditions Form, IL 00 17, to form a broad policy for those insureds engaged in radio or television broadcasting. The form can be amended to include coverage for a building (such as a station or maintenance building) used with the tower and replacement cost coverage. The base deductible is $500; optional deductibles (with a reduction in premium) are available.

Underwriting Considerations

The ISO Inland Marine Manual contains valuable information for the underwriter. The underwriter should be aware of the exposure at the location of the tower. Climatic records, if available, should be reviewed, since towers are notably susceptible to lightning strikes, wind, and ice. If the insurance is to apply to a building at or near the base of the tower, consideration should be given to construction and protection for the building in the same manner as to any other building, keeping in mind that if the tower falls it could damage or destroy the building.

Although the bulk of radio and television towers, because of their height, are particularly susceptible to weather-related loss, such as storms and ice, aircraft collisions account for many tower collapses. The wiring and cables in these towers can short-circuit and cause a fire. Careful underwriting as to weather patterns, air traffic, and engineering schematics is therefore obligatory. Other causes of loss are not common—one tower in France was destroyed by terrorists in 1961, a tower near Chicago came down in 2000 when someone used a hack saw on the guy wires, and a TV tower in Serbia was destroyed in a NATO air strike in 1999.

Because the form also covers mobile units (the type often seen broadcasting from a newsworthy event), the underwriter will want to consider the protection given to the mobile unit, as well as the equipment it contains. Remember, though, that form IH 00 77 covers the unit and the equipment only—the form does not provide any liability coverage arising out of its use.

Insuring Agreement; Covered Property

A.Coverage

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

1.Covered Property

Covered Property, as used in this Coverage Form, means the following property at the locations for which a limit of insurance is shown in the Declarations:

a.Radio and television towers, and related antennae, auxiliary equipment and appurtenant electrical operating and control apparatus;

b.Radio and television transmitting, receiving, recording and monitoring equipment;

c.Business personal property consisting of:

(1)Furniture, fixtures and office supplies;

(2)Scenery, sets and props;

(3)Machinery, tools and fittings;

(4)Patterns, dies, molds and models; and

(5)Tenants' improvements and betterments; and

d.Mobile units.

Analysis

The insuring agreement promises to insure for loss of or damage to covered property at a specified location as indicated in the declarations. Coverage is on an open perils basis—unless specifically excluded, a loss or damage is covered.

As well as television or radio towers, related antennae and equipment, and pertinent electrical operating and control equipment, the form also covers radio and television transmitting and receiving equipment and business personal property. Because it is common for a television tower to have, at or near its base, a building containing equipment necessary for the tower's operation and, in some instances, broadcasting studios, the form also covers business personal property. Coverage for the building structure itself can be arranged as one of the optional coverages. See Coverage Options later in this discussion.

The amount of insurance for each line requested is to be indicated in the declarations.

Property Not Covered; Covered Causes of Loss