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ISO Market Segments Program

Summary: Insurance Services Office (ISO) has developed a market segments program providing specialized coverages for certain specialty insurance markets. This program offers “wrap-around” endorsements that are used to enhance the coverages provided by standard coverage forms, like the commercial property and general liability forms. The form and some endorsements have been updated in 2007. Those updates will be highlighted in this discussion.

Eligible risks for the supermarkets segment include stores, a majority of whose sales are grocery products, total annual receipts (including concessionaires’ receipts) of $500,000 or more and total area of 3,000 square feet or more.

This treatment provides information on the supermarkets coverage form, MS SM 01. The endorsement modifies the CGL forms, the building and personal property coverage form, and the causes of loss—special form. These policies are analyzed in: see CGL Coverage Form–Coverage A ; see  Medical Payments ; see General Provisions of the CGL ; see Building and Personal Property Coverage Form ; and see Causes of Loss .

Topics covered:Introduction Changes to the commercial property formChanges to the causes of loss—special formChanges to the CGL formDefinitions Endorsements


Endorsement MS SM 01 modifies the CGL form, the commercial property form, and the causes of loss—special form. The modifications tailor these forms to the needs of the supermarket risk. The endorsement adds property and crime coverages and modifies the premium audit section of the CGL form. An endorsement is also available to add mechanical breakdown coverage. This endorsement is discussed later in this treatment. ISO’s promotional material says that this program is “designed for stores that sell mostly grocery products and occupy a total area of 3,000 square feet or more, with $500,000 or more in annual sales.”

Changes to the Commercial Property Form

The commercial property form (CP 00 10 04 02 ) covers the building and business personal property of the insured and property of others that the insured has in his care. It also specifies several items as property not covered. One category of property not covered in the CP 00 10 is accounts, bills, deeds, evidences of debt, money, notes, and securities. The MS SM 01 adds an exception to that category by providing some money and securities coverage.

The 2007 supermarket form no longer excludes the following property while outside of buildings:

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