Unit 14 Notes: Ocean and Inland Marine Insurance

Motor Truck Cargo Policy Domestic Shipments Category of the Nationwide definition

- "MOTOR TRUCK CARGO--TRUCKERS FORM" - Covers cargo while it is being transported in a truck - Insures a truck carrier for its liability for loss to cargo in transit - Protects the CARRIER, instead of the shipper, for liability loss to domestic shipments in transit - Carrier has a responsibility to deliver goods entrusted to it unharmed - Few things such as Acts of God (floods and tornadoes) or the shipper's own neglect (poor packing) for which the carrier is NOT liable

Motor Truck Cargo--Shipper's Policy Domestic Shipments Category of the Nationwide definition

- "OWNER'S GOODS ON OWNER'S TRUCKS" - "MOTOR TRUCK CARGO--SHIPPER'S FORM" - "MOTOR TRUCK CARGO--OWNER'S FORM" - Provides direct damage coverage for a company's goods while transported on the company's trucks

Jettison Ocean Marine

- A voluntary action to rid the ship of cargo to prevent further peril - Permitted if the action is taken to save the remaining property - Loss incurred by sacrificing a portion of the cargo will be reimbursed

Particular Average Loss Ocean Marine

- Any other partial loss that does not arise from a general sacrifice of property - There is no distribution of the loss among all property owners for particular average; instead, each owner bears whatever loss his own property sustained

Implied Warranties Ocean Marine

- Are not written into the policy but carry the same weight as those that are written - Breach of an implied warranty can void the contract - Include: _ seaworthiness: the vessel must be fit for the voyage, must not be overloaded, and must have a competent crew _ conditions of cargo: the cargo must be warranted to be sound and packed properly _ legality: the trip must involve a lawful enterprise _ no deviation in voyage: the ship must follow an agreed route, with no changes in destination and no untoward delays

Characteristics of Ocean Marine Insurance

- Can be issued on a named-peril or open-peril basis - Waterborne properties are subject to a wide variety of perils, such as fire, explosion, pilferage, contact with other cargo, and leakage or damage by ship sweat - Perils of the sea: _ Unusual wind or wave action _ Stranding _ Lightning _ Collision _ Sinking

Filed (controlled) Forms

- Classes of inland marine insurance that can be written under the commercial inland marine coverage part of the Commercial package policy and include these coverage forms: 1. mail 2. physicians and surgeons equipment 3. theatrical property 4. film 5. commercial articles 6. accounts receivable 7. valuable papers and records 8. signs 9. jewelers block 10. floor plan 11. equipment dealers 12. camera and musical instrument dealers - Open peril coverage

Transit Coverage in the Event of Cancellation Floor Plan Coverage Form Condition Dealers Policy of the Commercial Property Floater Risks of the Nationwide definition

- Condition states that if the policy is canceled property already in transit will be covered until it reaches its destination

Domestic Shipments

- Covered through a variety of inland marine Transportation forms that cover property being transported

Ocean Marine Insurance

- Covers cargo and ships in transit over sea; it is one of the oldest types of insurance and one of the first to provide open-peril coverage for the insured's property - there are NO standardized forms!

Cargo Insurance Ocean Marine

- Covers good while they are in transit over water - Through the use of the "WAREHOUSE TO WAREHOUSE CLAUSE" coverage is also extended to include coverage from the property's point of origination to its point of destination - This includes not only ocean travel but also any incidental journey by land (like the inland trip from the warehouse to the shipping dock) - Coverage may be purchased on a "TRIP" or "VOYAGE BASIS" or may be purchased as "OPEN CARGO" - An insured who frequently ships cargoes, such as an importer/exporter, would arrange for open cargo coverage

Physicians and Surgeons Equipment Coverage Equipment Floater of the Commercial Property Floater Risks of the Nationwide definition

- Covers medical and dental instruments on and off the premises, as well as furniture and fixtures at the office and the insured's interest in improvements and betterments - Medical and dental equipment of others used by the insured is also covered at the insured's option - Radium is NOT covered - Provides OPEN PERIL coverage - Also covers collapse of a building or structure when caused by a one of the specified perils in the form and damage caused by theft or attempted theft to the building - Insured must maintain any protective safeguards that were in effect at the beginning of the policy period; if insured fails to keep safeguards in working order while business is closed, coverage is suspended until safeguards are back in operation (if this condition exists in one of the coverages, it is the same description and will be noted as "INSURED MUST MAINTAIN PROTECTIVE SAFEGUARDS"

Theatrical Property Coverage Form Equipment Floater of the Commercial Property Floater Risks of the Nationwide definition

- Covers scenery, props, and costumes used by a theater group in a specific production identified in the declarations - Covers theatrical property in the insured's care, custody, or control or on which the insured has made partial payments - Does NOT cover: _ buildings or their improvements and betterments _ vehicles (unless actually used on the stage in the covered production) _ jewelry with precious or semiprecious stones, metals, or alloys _ accounts, bills, currency, deeds, money, securities, and admission tickets _ animals _ contraband _ property being illegally transported or traded - Provides OPEN PERIL coverage and contains may exclusions described in relation to other commercial inland marine forms as well as excluding: _ theft from an unlocked, unattended vehicle _ unexplained disappearance _ shortage found upon taking inventory - Collapse of a building or structure is also covered

Floor Plan Coverage Form Dealers Policy of the Commercial Property Floater Risks of the Nationwide definition

- Covers stock that is subject to a floor plan arrangement, in which a dealer borrows money from a lender with which to pay for merchandise; This encumbered merchandise can then be insured under a floor plan policy - Coverage may be written to cover the interest of the dealer, the lending institution, or both - Property is NOT covered after the insured's interest in it ceases or after it is sold, delivered, or otherwise disposed of - Excluded are: _ water damage to property at the insured's premises _ bankruptcy, foreclosure, or similar proceedings _ artificially generated current that creates a short circuit or other electrical disturbance within an article covered by the policy _ breakage of glass or other fragile articles _ damage to property in the open caused by rain, hail, sleet, snow, or freezing - Collapse coverage is included - Must maintain detailed records and take a physical inventory every 12 months and keep records for 3 years after the policy ends - Coverage is written on a reporting basis - Insured must file reports within 30 days after the end of each month - Premiums will be computed according to monthly rates - Insurer is NOT liable for loss in excess of the amount of insurance written, even if reported values exceed the limit of insurance - If insured has not filed any report at the time of a loss, the insurer is only liable for 90% of the limit of insurance written - If insured fails to make a report when required (30 days after end of each month), the insurer is liable for only the amount last reported - Penalty for under reporting values is a proportional reduction in recovery for a loss; - Coverage is re-rated at each anniversary - Insured must furnish info. required for re-rating purposes within 30 days after each anniversary

Contractors Equipment Floater Equipment Floaters

- Covers the heavy machinery, equipment, and tools a customer needs to conduct business - Covers the contractor on an OPEN peril or NAMED peril basis for loss to all types of tools, machinery, and equipment owned, rented, or borrowed by the insured - Property is protected from fire, landslide, theft, and other perils while it is on the job site, on the way to and from a job site, and in temporary storage - Neither the commercial property nor the commercial auto policies provide the extensive coverage that can be obtained under the contractors equipment floater

Camera and Musical Instrument Dealers Coverage Form Dealers Policy of the Commercial Property Floater Risks of the Nationwide definition

- Covers the insured's stock in trade as well as customer property in the insured's care, custody, or control, such as an instrument or camera that is being repaired, cleaned, or adjusted - Does NOT cover: _ property that has been sold and delivered to customers, including property sold under a deferred payment sales agreement _ money, securities, accounts, or bills _ furniture, fixtures, office supplies, improvements and betterments, machinery, patterns, molds, and models _ property that is in the mail (does NOT apply to property sent by registered or govt. insured mail) - Excludes: _ earthquake damage to property at the insured's premises _ water damage to property at the insured's premises _ theft from an unattended, unlocked vehicle with no visible signs of forced entry _ marring and scratching _ exposure to light _ breakage of tubes, bulbs, lamps, or items made largely of glass (except lenses) _ unexplained disappearance _ shortage found upon taking inventory _ artificially generated current that creates a short circuit or other electrical disturbance within an item covered under the policy - Collapse and theft coverages included - Conditions re: protective safeguards and maintaining inventory records also apply to this form - Losses to unsold property, sold property, and property of others are valued on the same basis as the equipment dealers coverage form - For negatives, positives, or prints, their value is the cost of unexposed film or developing paper including labor and materials

Commercial Articles Coverage Form Equipment Floater of the Commercial Property Floater Risks of the Nationwide definition

- Covers the interests of the owner of commercial cameras, musical instruments, and related equipment and similar property of others that is in the insured's care, custody or control - Provides OPEN PERIL coverage - Property is covered WORLD WIDE - Covers collapse - Additional acquired property is automatically covered for up to 30 days if it is a type of property already covered by the form; in the event of loss, the insurer will pay the lesser of 25% of the policy limit or $10,000 - The insured is required to report any additional acquired property within 30 days and pay any additional premium required; if NOT reported, coverage automatically ends after 30 days for the newly acquired property

Commercial Inland Marine Conditions

- Divided into two sections: 1. loss conditions 2. general conditions - Similar conditions contained in other policies - Duties after a loss are similar to those found in other property forms but also require the insured to send a signed, sworn statement of loss within 60 days after it is requested by the insurer

Commercial Property Floater Risks

- Embrace a number of subcategories of inland marine forms, including bailee's customer forms, equipment forms, business floaters, and dealers policies

Inland Marine Insurance

- First developed as an extension of ocean marine insurance to provide coverage for cargo that travels over land and branched out to provide very broad coverage on a wide variety of portable property in addition to the coverage it continues to provide for cargo in transit - characteristic that makes certain risk eligible is the element of portability although there are exceptions - As a general rule, it does NOT cover stationary property such as real estate, furniture, fixtures, or merchandise while it is being manufactured - There is no one standard policy; each type of property requires a unique policy form with each co. preparing its own contracts except for filed (controlled) classes of inland marine insurance that can be written under the commercial inland marine coverage part of the Commercial package policy

Commercial Inland Marine Coverage Part

- In addition to the common policy declarations and the common policy conditions, the coverage part requires: 1. commercial inland marine declarations form 2. commercial inland marine conditions form 3. one or more of the 12 filed coverage forms we listed earlier - When coverage is issued as a monoline policy, the commercial inland marine declarations form may be combined with the common policy declarations to form a single declarations

Instrumentalities of Transportation or Communication

- Include forms that cover property related to transportation or communication, such as bridges, pipelines, and t.v. towers

Instrumentalities of Transportation and Communication Category of Nationwide definition

- Includes forms covering such property as bridges, tunnels, oil pipelines, loading docks, and radio and TV towers

Signs Coverage Form Business Floater of the Commercial Property Floater Risks of the Nationwide definition

- Insures business against loss to neon, fluorescent, automatic, or mechanical electric signs and lights - Covers the insured's signs and similar property of others in the insured's care, custody, or control - Does NOT cover breakage during transport or during installation, repairing, or dismantling; excludes artificially generated current that creates a short circuit or other electric disturbance within a covered item - Provides standard collapse coverage

Trip Transit Policy Domestic Shipments Category of the Nationwide definition

- Insures single shipments of goods for companies that have only occasional shipments to insure - Coverage extends from the time and point of origination to the time and point of destination

General Average Loss and Law of General Average Ocean Marine

- Jettison is known as "general average loss" - This means that partial loss resulting from sacrifice of cargo to save remaining property is shared by all other property owners, including the owners of the ship - Each owner shares in the general average loss in proportion to the total property interest, regardless of which owner's property was actually jettisoned - 3 requirements that must be met in order for the law of general average to apply: 1. there must be a common danger in which all participate (vessel, cargo, and crew) and for which the danger is imminent and apparently inevitable--except by voluntarily incurring the loss of a portion of the whole to save the remainder 2. there must be a voluntary jettison of some portion of the joint concern with the purpose of transferring the peril from the whole to a particular portion of the whole 3. the attempt to avoid the imminent common danger or peril must be successful

Instrumentalities of Transportation and Communication

- No filed forms that fall under this category of the nationwide definition; the remaining filed forms all fall within COMMERCIAL PROPERTY FLOATER RISKS which can be divided into subcategories: 1. Bailee's customer forms 2. Equipment forms 3. Business floaters 4. Dealers policies

Non-filed Class or Forms

- Non-standardized forms for other inland marine coverages not specifically listed - May be open-peril or named-peril basis

Dealers Policies

- Nonfiled policies can be written for a number of dealers including art, stamp, coin, and antique dealers - These policies are generally written on an OPEN peril basis and cover property on premises, off the premises, or while in transit, provided certain conditions are met

Pollutant Cleanup and Removal Coverage Equipment Dealers Coverage Form Dealers Policy of the Commercial Property Floater Risks of the Nationwide definition

- Pays expenses to extract pollutants form land or water if the release or discharge of the pollutants resulted from a covered cause of loss that occurred during the policy period - Most insurer will pay is $10,000 for all such expenses arising during each separate 12 month period of coverage under the policy - Expenses must be reported to the insurer within 180 days of the date of loss - Included in Equipment Dealers coverage form but not other commercial inland marine forms

Debris Removal Coverage Equipment Dealers Coverage Form Dealers Policy of the Commercial Property Floater Risks of the Nationwide definition

- Pays expenses to remove the debris of covered property that is damaged by a covered cause of loss subject to a limit of 25% of the amount paid for the direct physical loss plus the amount of the deductible - Additional $10,000 available if amount of debris removal expense exceeds the 25% limitation - Expenses must be reported to the insurer within 180 days of the date of loss - Included in Equipment Dealers coverage form but not other commercial inland marine forms

Freight Insurance Ocean Marine

- Protects the insured against the loss of shipping costs - Coverage can be written separately or included with hull insurance or cargo insurance, depending on how the shipping costs are handled - When shipping is prepaid by the owner of the cargo, the owner would lose the shipping charges if the cargo is lost; in these cases, it is common for the owner to purchase freight coverage along with the cargo insurance - If the freight is not prepaid and the cargo is lost, it is the shipper or vessel owner who would stand to lose - A ship owner may protect against this loss by adding freight insurance to the hull coverage

Annual Transit Policy Domestic Shipments Category of the Nationwide definition

- Protects the shipper or receiver of goods against loss to goods in transit - Protects all of the insured's incoming or outgoing shipments during the year against loss while in transit - Coverage available on a NAMED peril basis which protects against fire, windstorm, collision and theft - Coverage also available on an OPEN peril basis

Film Coverage Form Equipment Floater of the Commercial Property Floater Risks of the Nationwide definition

- Provides OPEN PERIL coverage for exposed motion picture film, soundtracks, video tapes, and magnetic tapes that are used in the production scheduled in the declarations and that the insured owns or has in his custody or control - Does NOT cover: cut-outs, unused footage, positive prints or films, or library stock - Includes normal exclusions as well as loss resulting from: _ deterioration, atmospheric dampness, or changes in temperature _ exposure of negative film to light _ use of developing chemicals _ developing, cutting or printing of film, or other laboratory work _ electric or magnetic injury, disturbance, or erasure of electronic recordings or video tape (does NOT apply to damage caused by lightning) - Collapse coverage is included - Property is valued on the basis of the cost of reproducing the lost or damaged property plus any reduction in value of undamaged parts of a production - The cost of the story, scenario, music rights, continuity, permanent sets, owned wardrobes, and props are NOT considered when valuing the property - Payment cannot exceed the value of the covered production as shown in the insured's books - Property is covered until the full quota of positive prints or films is completed, the insured's interest in the property ends, or the policy expires or is canceled, whichever is first - Coverage territory includes the U.S. and its territories and possessions, Puerto Rico, and Canada; Property is also covered when it is located within 50 miles of these areas - Insured is required to keep accurate business records and retain them for at least 3 years after the policy ends - Insured must also send the insurer a written report for each production when it is no longer covered under the policy - The report must include the actual cost, overhead expenses, and other expenses of the completed production and a list of each studio, laboratory, vault, or cutting room used and the period the policy covered property at these locations - Actual premium charged is based on this reporting, using the rates in effect at the time the coverage began - The premium is adjusted to reflect any difference between the actual premium owed and the premium paid

Electronic Data Processing Equipment Floater Business Floater

- Provides OPEN peril coverage for computer hardware, software, and data that is owned by the insured or the insured's care, custody, or control - Property in transit is covered - Optional breakdown coverage insures against damage to the equipment caused by mechanical breakdown, electrical disturbances, and temperature changes - Extra expense and business income interruption coverage is also included

Motor Truck Cargo--Combination Form Domestic Shipments Category of the Nationwide definition

- Provides both liability coverages for the shipment of another's goods and direct damage coverage for the shipment of the insured's own goods on its own trucks

Protection and Indemnity Insurance (P&I) Ocean Marine

- Provides marine LIABILITY insurance for: - job-related injuries to sailors - injuries to stevedores, longshore workers, or harbor workers - damage to cargo through negligence - damage to other property not caused by collision - damage to other property or another boat resulting from collision

Mail Coverage Form Domestic Shipments (transportation forms of nationwide definition)

- Provides open-peril coverage against loss to property in transit by registered mail, first class mail, certified mail, or express mail - Covered property includes bonds, stock certificates, certificates of deposit and other securities, stamps, money orders, checks and other documents and paper of value EXCEPT food stamps, unsold travelers checks, and money which are only covered if sent by registered mail along with bullion, platinum, and other precious metals, jewelry, watches, precious and semiprecious stones - Covered while in the care, custody, and control of a govt. postal service and while in transit by a common carrier to and from a govt. post office until it is delivered to the address shown on the package or returned to the sender in the event of nondelivery - If the value of any mailing was NOT recorded property b/c of error or oversight, the insurer will pay ACV of the property in the event of loss if promptly notified after discovery of the error or oversight; however, if the value in any one shipping exceeds the limit of insurance, the insurer will pay only the proportion of a loss that the limit of insurance bears to the ACV - In event of a loss, the value of covered property is its ACV, but not less than its market value on the date of the mailing - Coverage is ALWAYS written on a REPORTING basis with reports REQUIRED 30 DAYS AFTER then END of each reporting period

Hull Insurance Ocean Marine

- Provides physical damage coverage for the ship itself while in transit on oceans, rivers, and lakes - Coverage may be obtained for a single vessel or an entire fleet - Limited liability insurance may also be included through the "RUNNING DOWN CLAUSE" which protects the owner if he is held liable for the negligent operation of the vessel in damaging another ship

Reinstatement of Limit After Loss Condition Commercial Inland Marine

- Provides that the limit of insurance will not be reduced by payment of any claim, except for a total loss of a scheduled item; when this occurs, the insurer will refund the unearned premium on that item - Losses are valued on ACV basis or the cost to restore or replace the property, whichever is less; the property's value is determined at the time of the loss

Barratry Ocean Marine

- Refers to illegal acts committed willfully by the ship's master or crew for the purpose of damaging the ship or its cargo - It includes hijacking, abandonment, or embezzlement

Accounts Receivable Coverage Form Business Floaters of the Commercial Property Floater Risks of the Nationwide definition

- Reimburses the insured for accounts that can't be collected from customers because of damage to the company's accounts receivable records - Covers extra expenses and interest on any loans the insured must obtain to stay in business while collections are impaired - Records in storage away form the premises are NOT covered - Exclusions include the normal plus: _ alteration, falsification, concealment, or destruction of accounts receivable records done to conceal wrongful acts _ bookkeeping, accounting, or billing errors or omissions _ electrical or magnetic injury, disturbance or erasure of electronic recording caused by: __ programming errors or faulty machine instructions __ faulty installation or maintenance of data processing equipment or components __ an occurrence that takes place more than 100 ft. from the insured's premises __ interruption of electrical power supply, power surge, blackout, or brownout that occurs more than 100 ft. from the insured's premises - Any loss that requires an audit of records or inventory computation to prove its existence is NOT covered - Provides coverage for collapse - Covers the loss of records when removed from the premises to protect the from imminent loss; removal coverage applies only if the insured gives written notice of the removal within 10 days - If insured cannot accurately establish the amount of accounts rec. outstanding at the time of the loss, the average monthly amounts rec. for the preceding 12 month period will be used; that amount is then adjusted for normal fluctuations in the amount rec. or demonstrated variance from the average for the month in which the loss occurred; the following will be subtracted from the total amount of accounts rec.: _ amount of accounts for which there is no loss _ amount of accounts that the insured is able to reestablish and collect _ an amount to allow for probable bad debts that the insured is normally unable to collect _ unearned interest and service charges - To the extent that any loss is paid by the insurer, any later recovery of amounts rec. must be returned to the insurer; recoveries in excess of the amount paid by the insurer do not have to be returned - Insured must keep all accounts rec. records in receptacles described in the declarations when the business is closed and when records are not in use

Valuable Papers and Records Coverage Form Business Floater of the Commercial Property Floater Risks of the Nationwide definition

- Reimburses the insured for the cost of replacing damaged items such as manuscripts, films, maps, drawings, deeds, and books that belong to the insured or are in the insured's care, custody, or control - Does NOT cover money or securities - Provides collapse and removal coverage like that for Accounts Rec. Coverage Form - Pays for up to $5,000 for loss to covered property while it is away from the premises (unless a higher limit is specified in the declarations) - Important exclusions: E&O in processing or copying and electrical or magnetic injury, disturbance, or erasure of electronic recordings - Value of each item of property that is specifically declared and descried in the declarations is the applicable limit for that item - If property is recovered after the loss is settled, the insured may choose to have the property returned, with an adjustment made to the amount already paid - Insured must keep all valuable papers and records in receptacles in the declarations when business is closed and when records are not in use

Bill of Lading Domestic Shipments Category of the Nationwide definition

- Sets forth obligations which must be issued to each business for whom the carrier ships goods - Business that ship or receive merchandise need coverage against loss to their cargoes while they are in transit - Common carriers (those who hold themselves out to the public to ship goods) must accept a certain amount of liability for losses to cargo

Other Insurance Condition Commercial Inland Marine

- States that if the insured has other insurance that is written on the same basis as the commercial inland marine form, the commercial inland marine form pays on a PRO RATA basis - If other coverage is not written on the same basis, commercial inland marine coverage is excess over any other insurance that applies to the loss, regardless of whether the insured can collect under the other insurance

Bailee's Customer Policies Commercial Property Floaters Risks

- Subcategory for which there are no filed forms but for which there are several nonfiled forms 1. Cleaners policy 2. Dyers policy 3. Launderies policy - Reimburses the insured for damage to customer's property that is in the insured's care regardless of whether the insured is liable for the damage as long as the damage resulted from a covered peril - Confusion of Goods: unique peril that covers the loss that can occur when the resulting damage from another loss has made it impossible to identify which garments belong to a particular customer

Bailment

- The delivery of property by the owner to someone else to be held for some special purpose and then to be returned to the owner - Ex: Leaving your shoes at the repair shop to have them reheeled

Bailor

- The one who owns the property

Bailee

- The one who receives the property

Average Ocean Marine

- The term used to indicate a partial loss

Non-Filed Forms

- Those that cannot be included in the commercial package policy

Marine Insurance

- Type of property insurance that protects property wherever it is, on land or sea - Two types of marine insurance: 1. Ocean marine 2. Inland marine

Equipment Dealers Coverage Form Dealers Policy of the Commercial Property Floater Risks of the Nationwide definition

- Used to cover dealers of mobile equipment and construction equipment - Covers the dealer's stock in trade, consisting primarily of mobile agricultural equipment and construction equipment - Covers property of others in the dealer's care, custody, or control - Does NOT cover: _ automobiles, trucks, motorcycles, aircraft, and watercraft _ money, securities, accounts, and bills _ property in the course of manufacture _ property that is leased, rented, or sold, including property sold under a deferred payment sales agreement _ furniture, fixtures, office supplies, improvements and betterments, machinery, tools, patterns, dies, molds, and models; or _ property of others described in the declarations - IMPORTANT EXCLUSIONS: _ water damage to property at the premises _ unexplained disappearance _ shortages found upon taking inventory _ artificially generated current that creates a short circuit or electrical disturbance within an article covered by the property - Includes collapse coverage and damaged caused by theft or attempted theft to the building - Must maintain protective safeguards and inventory records once every 12 months and report to insurer - Value of unsold property is the lesser of ACV, the cost to restore the property, or the cost to replace it - Property that is sold but not delivered at its net selling price after all allowances and discounts - Value of property of others in the insured's care, custody, or control is the lesser of the amount for which the insured is liable or ACV - The value of the insured's labor and materials is considered in both cases

Dual-Interest Basis Coverage Floor Plan Coverage Form Condition Dealers Policy of the Commercial Property Floater Risks of the Nationwide definition

- When written on a dual-interest basis, the policy provisions are BINDING on ALL parties; however, the protection given a secured lender will NOT be impaired by failure of another party to comply with policy provisions if the secured lender diligently tried to comply with all provisions

Domestic Shipments Category of the Nationwide definition

- includes a number of nonfiled inland marine transportation forms that provide coverage for shipments traveling by truck, train, air, or mail

Installation Policy Business Floaters

- inland marine coverage that insures against loss to machinery, equipment, building materials, and supplies in transit to or being used with or during the course of installation, testing, building, renovating, or repair - Can be used to cover the interest of the owner, the seller, or the contractor

A. Covers the ship itself while in transit over water B. Covers goods being shipped overseas C. Covers watercraft liability exposures D. Covers loss of shipping costs

1. Hull 2. Cargo 3. Protection and Indemnity 4. Freight

Optional Coverages for Jewelers Block Coverage Form Dealers Policy of the Commercial Property Floater Risks of the Nationwide definition

1. Show Windows Coverage: covers theft of stock from a show window when the window is cut or smashed 2. Money Coverage: covers theft of money from locked safes or vaults on the insured's premises

Jewelers Block Coverage Form Dealers Policy of the Commercial Property Floater Risks of the Nationwide definition

Covers: - the insured's stock in trade, which includes jewelry, precious/semiprecious stones, precious metals and alloys, and other stock used in the business - property that is sold but not delivered - similar property of others WHO ARE NOT IN THE JEWELRY TRADE in the insured's care, custody, or control - similar property of others IN THE JEWELRY TRADE in the insured's care, custody or control, but only to the extent of the insured's legal liability for the property or the amount of money actually advanced by the insured - Does NOT cover property: _ sold under a deferred sales payment agreement after is leaves the insured's premises _ at an exhibition promoted or financially assisted by a trade association or public authority _ exhibited in showcases or show windows away from the premises _ while being worn by the insured, an employee or a family member of either (does not apply to watches worn solely for the purpose of adjustment) _ in transit by: __ mail (unless registered mail) __ express carriers, railroads, or waterborne or air carriers (does not apply to property accompanied by a passenger and transported by passenger parcel or baggage services), or __ motor carriers (does not apply to shipments by a carrier operating exclusively as a merchant's parcel delivery service, by an armored car service or by parcel transportation or baggage services or passenger bus lines) - Provides collapse coverage and damage caused by theft or attempted theft - Exclusions on page 324 - In the event of loss, the value of the property is determined at the time of loss and is the lesser of: _ ACV _ cost to restore the property to its condition immediately before the loss _ cost to replace the property _ the lowest figure listed in the insured's inventories, stock books, stock papers, or lists existing at the time of loss - Antique or historical value is NOT considered in the value of the property - Insured must maintain protective safeguards - Insured must take physical inventory at least once every 12 months and maintain detailed records of inventory, purchases, sales, property of others, and property off premises - These records must be maintained for 3 years AFTER the policy ends

Nationwide Definition

Identifies the kinds of risks that are eligible for either Ocean or inland marine insurance and lists six categories of eligible marine risks: 1. imports (covered by ocean marine) 2. exports (covered by ocean marine) 3. domestic shipments (eligible for commercial inland marine) 4. instrumentalities of transportation or communication (eligible for commercial inland marine) 5. personal property floater risks (covered by personal inland marine) 6. commercial property floater risks (eligible for commercial inland marine)