ISO Policy

Summary: The Insurance Services Office (ISO) offers the Bailees Customers Coverage Form, IH 00 85 12 13, that is part of its inland marine (IM) program for nonfiled commercial IM exposures. This article reviews the ISO coverage form, with its insuring agreement, exclusions, conditions, and definitions. This form was updated in 2013, and this discussion reviews that updated form.

Topics covered: Coverage Property not covered Causes of loss Additional coverages Exclusions Limits of insurance and deductible Additional conditions Definitions Declarations page

Coverage

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

Covered Property, as used in this Coverage Form, means personal property of others that is in your care, custody or control.

Analysis

IH 00 85 declares that the insurer will pay for direct physical loss of or damage to covered property from any of the covered causes of loss. The property that is covered under this form is the personal property of others that is in the care, custody, or control of the named insured. Dry cleaners are a common example of bailees, as are furniture repairers that take the furniture to be repaired to their shop, and other such services. The coverage form applies to direct physical damage and not to any consequential losses, or loss of use. Damage must be to the actual property; for example the dress left at the dry cleaners must be damaged; the owner's inability to wear the garment to the ball because the cleaner was behind on his orders is not covered. The covered causes of loss are all risks of direct physical loss or damage except those causes of loss listed in the exclusions section of the policy; in other words, IH 00 85 is an open perils type coverage form, which is in keeping with an inland marine form.

Property Not Covered