Commercial Inland Marine

What is the Privilege to Adjust with Others provision?

A Privilege to Adjust with Others condition gives the insurer the right to settle losses to property that belongs to other parties that was in the care, custody, or control of the insured. This settlement is done directly with the party that actually owned the damaged property.

What is the combination form?

A combination form provides coverage for organizations that ship goods on their own trucks and ships goods for others as a common or contract carrier. It effectively combines the coverage provided by the truckers form and the owners form.

What does the signs coverage cover?

A sign coverage form is a controlled form that covers the following: Neon signs Fluorescent signs Automatic signs Mechanical signs Similar property, owned by other people, which is in the insured's care, custody, or control ---------------- This form does not deal with electrical disturbances in the sign or short circuits that are created by an artificially generated current.

What is the difference between a straight (or regular) bill of landing and a released bill of landing?

A straight (or regular) bill of lading sets down that the carrier is responsible for the invoice cost of the goods. A released bill of lading establishes that the carrier is only responsible for the value of the goods that are declared on the bill of lading.

What is a trucker's form?

A trucker's form covers public truckers for legal liability related to loss or damage to cargo that belongs to other people while it is in the trucker's possession. This coverage is only applicable if the carrier happens to be legally liable for the loss, and the loss was caused by an insured peril.

What is the difference between controlled and uncontrolled commercial inland marine coverage forms?

Commercial inland marine coverage forms can be classified as controlled or uncontrolled. Controlled (or standardized forms) are forms that are filed with the Department of Insurance by insurers. Rules found in the Commercial Lines Manual are used to govern these kinds of forms. Uncontrolled (or non-standardized) are not filed with any rating bureau. These kinds of forms, often known as "floaters" are developed by insurers and generally differ from insurer to insurer.

What is Commercial Inland Marine insurance?

Commercial inland marine insurance generally provides coverage for land-based property that is usually mobile, mainly when the property is not on the owner's premises. While this kind of insurance doesn't usually deal with furniture or fixtures at a specific location, it may cover furniture or fixtures that are in transit. Inland marine coverage is usually written on an open peril basis, but it can be written as named peril insurance. Valuation is often set up as an agreed value or stated amount. There are some commercial inland marine parts that set up valuation on an actual cash value basis or a replacement cost basis.

What is a Bill of Landing?

Common carriers are required to issue a uniform "bill of lading" to the shipper of the goods. The bill of lading is a receipt for the goods (showing both the transfer from the sender to the shipper and from the shipper to the recipient). It also sets forth an agreement between the carrier and shipper. The word "lading" is derived from the word "loading"; nevertheless, a bill of loading is NOT another term for bill of lading.

What gaps does inland marine insurance fill?

Inland Marine policies have evolved to a form of insurance covering a variety of property on water and land, and filling the gaps left by other P&C policies. These gaps include: Coverage of personal property and mobile equipment off premises Theft coverage Coverage for bailees Availability for application to property which is not mobile but could be Coverage of instrumentalities of transportation like bridges, roads, and tunnels Coverage of instrumentalities of communication like telephone lines, towers, and cables However, even today marine insurance has a few unique qualities and provisions. For example, no Ocean Marine and very few Inland Marine policies are "filed"; rather, they are "manuscripted". An inland Marine policy may be a standalone (monoline) policy, or it may be added to a policy as an endorsement under: (1) Commercial Inland Marine Declarations form; (2) Commercial Inland Marine Conditions form; or (3) One or more of the Inland Marine coverage forms. The contract between the shipper and the carrier is referred to as the Bill of Lading, and describes the goods being shipped, verifies receipt, and guarantees safe delivery.

What is the definition of Nationwide Marine?

The Nationwide Marine Definition, which was adopted by the National Association of Insurance Commissioner, defines six classes of property that can be insured under a marine policy. The classes are the following: Imports (Ocean) Exports (Ocean) Domestic shipments (Inland) Instrumentalities of transportation or communication; e.g. bridges, antenna towers, etc. (Inland) Personal property floater risks (Inland) Commercial property floater risks (Inland)

How is the existence of other insurance dealt with in the inland marine policy?

The Other Insurance condition in a commercial inland marine policy states that a loss covered by both the commercial inland marine policy and another policy written on the same basis will be shared proportionally by both policies. If the other policy does not happen to be written on the same basis it will be primary and the inland marine policy will be excess.

What are the conditions under an Inland Marine policy?

The conditions under an Inland Marine policy are, generally, the same as the conditions we've come to expect in insurance policies. We'll discuss three unique conditions that apply. The following are the general conditions found in a commercial inland marine coverage part: Concealment Legal Action Against the Insurer No Benefit to Bailee Policy Period Valuation

What is the legal liability for a common carrier? It is nearly absolute for loss or damage to property that is in the common carrier's custody.

The liability for a common carrier is nearly absolute for loss or damage to property that is in the common carrier's custody. This is regardless of the carrier's negligence (or lack of negligence) and is for almost every cause. There are five exceptions to this. Acts of God Acts of a public enemy Exercise of a public authority Fault or neglect of a shipper Inherent vice (a hidden defect which is a cause of or contributing factor to the loss or damage)

Are the policy limits in an inland marine policy reinstated after a loss?

This condition establishes that the contract limits of a commercial inland marine policy will not be reduced following the payment of a claim. The exception to this is a claim of a total loss of a scheduled piece of property. Should there be a total loss of a scheduled item, there will be a refund of unearned premium through the end of the coverage period which will be paid to the policyholder.

What does the Transportation Floater coverage cover?

This contract establishes who has responsibility for the safe transit of goods. It may exclude the following events from coverage: Acts of God War Acts of a public authority Acts of the shipper Inherent vice

How does the controlled form deal with accounts receivable?

This controlled coverage form deals with amounts of money that are owed to the insured, but cannot be collected from customers. This situation has to be caused by direct physical loss or destruction of records of accounts receivable related to a covered loss, like the collapse of a building.

What does the Equipment Dealer's Coverage Form cover?

This controlled form covers an insured's stock in trade, if it consists primarily of mobile agricultural equipment, construction equipment, and similar property owned by other people, but placed in the care, custody, or control of the insured.

What does the Jewelers Block Coverage Form cover?

This controlled form covers an insured's stock in trade, if it consists primarily of the following: Jeweler Precious and semi-precious stones Precious metals and alloys Similar property owned by other people that is in the insured's care, custody, or control This coverage does not include property that is worn by salespersons who are employed by the insured. Neither does it include property in showcases or show windows away from the premises.

What is the Commercial Articles form? It is controlled or uncontrolled? What does it cover?

This controlled form covers the following items: Cameras Projection machines Films and related equipment and accessories Musical equipment Similar property of others that is in the insured's care, control, or custody

What doe the Valuable Papers and Records coverage cover?

This coverage form, which is usually controlled, provides coverage for the costs associated with replacing or reconstructing valuable papers and important records like books, files, deeds, and mortgages. This coverage also covers valuable papers and records that are in the insured's care, custody, or control. This form does not deal with errors in transmission.

What is the Electronic Data Processing Floater?

This coverage form, which is usually uncontrolled, covers computers and electronic data processing equipment and media. This coverage includes hardware, software, extra expenses, and business interruptions. This coverage is written to deal with external risks of direct physical loss. Damage from mechanical breakdown, faulty construction, intentional damage, and faulty programming is usually not covered. Any covered hardware and software must be described in the declarations page. Value is based on actual cash value unless replacement cost is indicated in the declarations page.

What is the Annual Transit form?

This form is for firms that want protection for property that is being shipped to others or received from other shippers through a common carrier during a year. An annual transit form usually has two limits of liability. The first limit is the maximum that can be collected for loss in any one place The second limit is the maximum that can be collected for all losses in any one disaster This kind of form does not cover the following: Improper packing or handling Insects, vermin, or an inherent vice Leakage, evaporation, breakage, mold, rust, etc.unless it is the result of a covered peril This kind of form can be written on an open cargo basis, which covers all of the shipper's goods that are in transit.

What is the trip transit form?

This form is primarily for people who are looking to insure a single shipment. This form can also be written to insure property that is temporarily in storage.

What is the owner's form?

This particular form is designed to provide coverage for a business that owns trucks used to transport its own goods. Trucks that are owned are scheduled on the form, along with a limit for each truck. This form does not cover losses that result from the dishonesty of the insured's employees.

What does the Contractors Equipment Floater coverage form provide coverage for? It is controlled or uncontrolled?

This uncontrolled coverage form applies to mobile equipment, tools, and construction machinery that is owned by contractors. The coverage provided by this form is often written on an open peril basis, but subject to specific exclusions. Valuation is determined by the actual cash value method unless the replacement cost method is indicated on the coverage schedule. Equipment that is newly acquired must be reported to the insurer within 60 days. The policy territory for this coverage part is usually the United States (including territories and possessions), Canada, and Puerto Rico.

What does the Installation Floater coverage form cover?

This uncontrolled coverage form is specifically for contractors. It provides coverage for loss to equipment that must be installed in buildings (air conditioners, elevators, etc.). This coverage is effective during transportation, unloading, and installation of equipment until control of the equipment is turned over to the purchaser (or owner of the building).

What is the Bailee's Customers form? Is it controlled or uncontrolled?

This uncontrolled form covers all lawful goods belonging to others that are accepted by the insured. One example of this is an appliance repair firm (the insured) that takes in appliances owned by other people in order to repair them. This coverage form does not deal with property owned by the insured. Additionally, misdelivery or unaccountable losses are not covered. Coverage can be set up on an open or named peril basis. This coverage reimburses the insured for damages to a customer's property, regardless of whether the insured is liable.

What is the Shipper's Form?

While a shippers form is structurally similar to a trucker's form, the coverage is designed to protect the owner of goods from loss when the goods have been shipped by a trucker who operates as a common or contract carrier.