Equipment dealers form CM 00 22 provides open perils coverage for dealers in mobile agricultural and construction equipment. Coverage may be written on a reporting or nonreporting basis. When written on a reporting basis, form CM 99 02 09 04 is attached. To create a monoline equipment dealers coverage policy, form CM 00 22 is used together with policy declarations and equipment dealers declarations pages, common policy conditions form IL 00 17 11 98; (see Common Policy Conditions), Commercial Inland Marine Conditions form CM 00 01 09 04 (see Introduction, General Rules and Conditions), and any appropriate endorsements. Declarations pages and forms for any other desired or necessary coverages may be added to complete a package policy for the insured.

Analysis

The equipment dealers coverage form provides open perils coverage, promising to pay for direct physical loss of or damage to covered property from any covered cause of loss. Note that the word “loss” has been replaced with the phrase “direct physical loss of or damage to.” The “covered causes of loss” applicable to this form are “risks of direct physical loss to covered property except those causes of loss listed in the exclusions.”

The form defines covered property as the named insured's stock in trade. The stock in trade consists principally of mobile agricultural and construction equipment. The form also covers similar property of others in the care, custody or control of the insured. This definition of property is broad enough to include miscellaneous items that a dealer may carry for the accommodation of customers. Coverage would be provided, for example, for an inventory of sun glasses or jackets carried by a farm equipment or contractor's equipment dealer.

Note, however, that the definition of covered property does not mean that only mobile agricultural and construction equipment and the accessories of either are covered. If this form is written for an eligible risk, all of the insured's stock is covered. For example, if a mobile farm equipment dealer also sells seed and grain, that inventory is also covered.