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ISO Commercial Property Program

Summary: Standard business income and extra expense endorsements available for general use as part of the simplified language commercial property program of Insurance Services Office are listed in these pages—in the order of their CP designations—along with a brief description of the coverages provided by each. The endorsements are listed in alphabetical order in the topics covered.

Topics covered: Business income changes—beginning of the period of restoration, CP 15 56 Business income changes—educational institutions, CP 15 25 Business income and/or extra expense—coverage for year 2000 computer-related and other electronic problems, CP 15 57 Business income from dependent properties—broad form, CP 15 08 Business income from dependent properties—limited form, CP 15 09 Business income—landlord as additional insured (rental value), CP 15 03 Business income premium adjustment, CP 15 20 Business income report/work sheet, CP 15 15 Civil authority change(s), CP 15 32 Discretionary payroll expense, CP 15 04 Electronic media and records, CP 15 29 Expanded limits on loss payment, CP 15 07 Extra expense from dependent properties, CP 15 34 Mining properties—business income, CP 15 24 Ordinance or law—increased period of restoration, CP 15 31 Ordinary payroll limitation or exclusion, CP 15 10 Power, heat, and refrigeration deduction, CP 15 11 Radio or television antennas—business income or extra expense, CP 15 50 Seasonal leases—monthly limits on loss payments, CP 15 13 Utility services—time element, CP 15 45

Business Income—Landlord as Additional Insured (Rental Value), CP 15 03

This endorsement, CP 15 03 06 07 , provides a schedule on which the landlord may be added as an additional insured for rental value purposes. The named insured on the policy is the tenant. If the policy includes business income coverage for the named insured, the amount paid to the additional insured will reduce the named insured’s business income recovery for normal operating expense.

Discretionary Payroll Expense, CP 15 04

Endorsement CP 15 04 06 07 provides a schedule that may be used to include payroll expenses for the job titles listed as continuing normal operating expenses. Discretionary payroll may be listed as job classifications or specific employees. The payroll may be included for just a specified number of days or for the entire period of restoration.

Expanded Limits on Loss Payment, CP 15 07

The system of recovery prescribed by extra expense coverage form CP 00 50 06 07 limits the insured’s recovery to various percentages of the limit of insurance in thirty-day intervals (40 percent for thirty days or less; 80 percent for sixty days or less; 100 percent for sixty days or more is a typical choice) with provision in the form and declaration page for three such intervals. When four or more thirty-day intervals are chosen instead, endorsement CP 15 07 11 85 is used. For a discussion of the limits on loss payment provision of the extra expense form and the issues relating to the selection of percentages of payment, see Extra Expense Insurance .

Business Income from Dependent Properties—Broad Form, CP 15 08

Business Income from Dependent Properties—Limited Form, CP 15 09

These endorsements are used to provide coverage for loss of business income due to the necessary suspension of the insured’s operations as a result of loss by a covered cause of loss to dependent property. Dependent property is that property not owned, operated, or controlled by the insured on which the insured is dependent in any way for continuation of the insured’s normal business operation. Coverage does not apply if the only loss to dependent property is loss or damage to electronic data.

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