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ISO Form CP 04 40

Summary: The Spoilage Coverage form, CP 04 40 06 07 , can be used to modify the Building and Personal Property Coverage form and the Condominium Commercial Unit-owners Coverage form. It provides coverage for perishable stock due to breakdown or contamination or power outage, as indicated on the declarations.

Topics covered:

Introduction Covered property Causes of loss Selling price Exclusions Deductible Additional condition Definitions

Introduction

This endorsement extends the covered causes of loss to cover against direct physical loss or damage to perishable property. The covered causes of loss are identified in the endorsement. The endorsement allows for covered property and covered causes of loss to be identified by schedule. This article discusses the sections of the endorsements, except sections E. and I are not addressed as they merely state that the underlying policy’s coverage extensions and optional coverages do not apply to the spoliation coverage.

Covered Property

The Coverage Form to which this endorsement applies is extended to insure against direct physical loss or damage by the Covered Causes of Loss, but only with respect to coverage provided by this endorsement.

A.Paragraph A.1., Covered Property, is replaced by the following:

1Covered Property

Covered Property means “perishable stock” at the described premises owned by you or by others that is in your care, custody or control.

B.With respect to the coverage provided by this endorsement, property located on buildings or in the open or in vehicles is considered to be Property Not Covered.

Analysis

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