Success Stories

This coverage suggestion recommended that a Scheduled Personal Property Endorsement (With Agreed Value Loss Settlement) be made available for insureds in their Farm Property Program. Like ISO's Homeowner form HO 04 60 – Scheduled Personal Property Endorsement (With Agreed Value Loss Settlement), a farm property version of this endorsement providing similar coverage is now available as FP 04 62 06 25 – Scheduled Personal Property (With Agreed Value Loss Settlement.)

With this endorsement, various types of scheduled personal property, including jewelry, fine arts, silverware, and other broad categories of items could be scheduled with Agreed Value loss settlement.

With exposures today, the ISO Personal Auto Policies (PAP) need to address the coverages and exclusions associated with joint custody issues and exclusions for family members.

With the optional endorsement PP 43 31 01 23 Family Member Extended Non-Owned Coverage – Vehicles Furnished Or Available For Regular Use, ISO introduced a coverage option addressing an insured's potential exposure with respect to a family member's use of a vehicle owned by another family member. This endorsement extends non-owned Liability and Medical Payments coverage for vehicles furnished or available for the regular use of family members named in the endorsement's schedule.

Since the 1980s EIFS claims have come to issue with improper installation causing water intrusion. Over the years the industry has developed drainable EIFS processes with proper installation. ISO has introduced several optional endorsements to address drainable EIFS.

The endorsements, all with an edition date of 12/25, exclude EIFS, but now allow exceptions for drainable EIFS or drainable EIFS not installed over wood. There are also endorsements allowing the exception to apply only to designated operations or projects and to include an aggregate limit of insurance.

ISO rules permit the insured to purchase Employee Dishonesty Coverage as an option in the Businessowners Policy (BOP) up to a maximum limit of $100,000. However, the wording in the BOP gave the insurer the first right of recovery from an employee making restitution, even if part of the loss was uninsured (e.g., the loss was greater than the limit purchased.)

In response to this item, ISO revised the wording in the August 2024 edition of the BOP, BP 00 03 08 24. The new wording puts the insured first in line of recovery for their losses that exceed the amount the insurer paid.

The current BOP Ordinance or Law Coverage endorsement BP 04 46 07 13 is for construction codes AT the time of loss. This is of particular issue when a catastrophic claim hits the area and the city/county decides to update their construction codes AFTER the loss leaving insureds to pay for any changes in construction code after the loss.

In BP 04 46 08 24 – Ordinance or Law Coverage, ISO introduced a post-loss ordinance or law option for both direct physical damage and business income/extra expense. With this option, the insured has coverage to comply with ordinances or laws promulgated or revised after the loss but before reconstruction or repair begins. This option for post-loss coverage was also added to BP 04 84 08 24 – Functional Building Valuation.

The BOP has the advantage of the automatic actual loss sustained coverage (ALS) for business income for one year following a covered loss. Many jurisdictions have had issues with engineering approvals, inspections and many times the current time limits on business income may be exhausted.

ISO currently has the BP 14 07 as an option to extend the time period up to 18 months. In the 08/24 BOP revisions, an option to use BP 14 07 to increase the actual loss sustained period of indemnity applicable to the Business Income and Extra Expense Additional Coverages to 24-months is available.

Construction contracts commonly require that coverage, provided to and for the benefit of the additional insured, be granted on a "primary and noncontributory" basis with upper tier contractors seeking vertical exhaustion of limits prior to any of the upper tier contractor's policies being impacted.

This emerging demand was recognized by ISO, and endorsements to address the contractual order of response in the Excess Liability and Commercial Umbrella programs were introduced. The Excess Liability endorsement is CX 24 23 12 23 Noncontributory and Order of Response – Other Insurance Condition. The Commercial Umbrella endorsement is CU 24 77 12 23 Noncontributory and Order of Response – Other Insurance Condition. A CGL endorsement was also created for use on the upper tier contractor's CGL making it excess of other policies to which it has been added as additional insured. That endorsement is CG 24 56 12 23 Excess Insurance Provision – Order of Response – When You Are An Additional Insured On Other Insurance.

A suggestion was made that the Personal Auto Policy (PAP) exclusion for losses arising out of the ownership or operation of a vehicle while it is being used as a public or livery conveyance be reviewed and modified. The exclusions impact both liability and physical damage. There is an uptick in the number of households that report either insureds or other family members being periodically involved in delivery of food and other personal property.

ISO agreed that more clarity would be beneficial. They have since published endorsements PP 43 33 01 23, Public or Livery Conveyance Exclusion (Including Delivery Network Platform) Endorsement, and PP 43 34 01 23, Delivery Network Driver Coverage to clarify that coverage does not exist under the PAP for delivery of household items and making available for an additional premium liability and physical damage endorsements to cover the use of autos for "On-Demand" deliveries.

The Crime Policy's Employee Theft insuring agreement provides an exclusion for any employee when the insured learns of a theft or any other dishonest act the employee committed before or after becoming employed by the insured. This language is extremely broad and if an employee expressed taking a pack of gum when they were young, it could void coverage for that employee.

ISO is filing extensive changes to the Crime And Fidelity Program for commercial and governmental entities and is introducing endorsement CR 20 37 – WAIVE ACTS COMMITTED BY EMPLOYEES BELOW AN AMOUNT.

The current homeowners/tenant policies include personal liability coverage for the off premises operation of limited, non-licensed "motor vehicles." A variety of toy vehicles, electronic bicycles and new technologies are not clearly addressed in current ISO homeowners forms. Personal liability protection for the operation of these vehicles is lacking.

ISO is addressing this item in the 2022 Homeowners Program general revision.

There is an emergence of people living remotely. These "mobile individuals" do not sign a year lease or live in one place — they travel, house sit, dog sit, work on an oil rig, work on a cruise ship, etc. Mobile people still have a need for personal property and liability coverage but are unable to obtain the coverage that follows them.

ISO is addressing many of these exposures in their Homeowners program in 2022 including HO 00 14 – CONTENTS COMPREHENSIVE FORM that could help.

Oftentimes, there are other structures that warrant replacement cost coverage but cannot be added. Examples include expensive fences, playground equipment, detached decks, above ground swimming pools, boat lifts and docks, and elaborate outdoor kitchens.

ISO is addressing this item partially with the 2022 Homeowners program revision by revising HO 04 43 to provide replacement cost loss settlement to permanent, built-in outdoor kitchens and cooking facilities. The 2022 revision also introduced HO 06 91 and HO 06 92 for other structures away from the residence premises.

The unendorsed Homeowners form includes $1,000 Loss Assessment coverage under the Property and Liability sections. $1,000 is not a practical amount for today's most basic assessments. Master policies often have Wind and Hail deductibles of 1% or 2% which result in higher assessments to owners.

Although we sought higher limits, ISO is having the limit increased to $2,000 in the HO 2022 edition.

The Homeowners 3 – Special Form HO 00 03 05 11 has a Liability coverage exclusion that proves problematic when an insured purchases land for future use. The property may have no buildings and the owner may not yet be living there, leaving the property owner to consider it vacant. This creates issues when a court deems it as not vacant due to having a fence or some sort of land improvement.

The ISO Homeowners 2022 revision will offer the opportunity to schedule these locations via HO 24 02 – OTHER INSURED LOCATION(S).

Ride sharing continues to expand and endorsements PP2341 1015 and PP2345 1015 make exceptions to the 'public or livery conveyance' exclusion in Part D for a scheduled vehicle while it is being used during any period of time a person is logged into the transportation network platform, but only if a passenger is not occupying it.

ISO is developing PP 43 32 – TRANSPORTATION NETWORK DRIVER PHYSICAL DAMAGE DEDUCTIBLE COVERAGE as an optional form in an upcoming multistate revision.

With rising costs and inflation, it would be relevant to increase Commercial Property Extensions and Additional limits in current property forms to provide increased limits of coverage.

ISO anticipates development and filing of new endorsements for the Commercial Property product as an enhancement to modify the various limits of insurance, or other terms, provided in the major CP coverage forms for various additional coverages and coverage extensions.

Most insurance carriers have enhancements or allow coverage in their commercial property policy's forms to increase the standard 100 feet off the premises to 1,000 feet of the premises.

To bring the commercial property coverage forms into alignment with what is very prevalent in the marketplace, ISO is planning to amend the various distance requirements within the forms from 100 feet to 1,000 feet during the next CP major multistate filing.

ISO's Business Owner's Policy's form BP 04 46 automatically has the option to select Business Income and Extra Expense for Ordinance or Law-Increased Period of Restoration. Commercial Property forms do not have this option.

A draft optional endorsement is expected, which would effectively combine into a third option the CP 04 05 with the CP 15 31, Ordinance Or Law – Increased Period of Restoration endorsement.

Over the years with the increase in active shooters and related criminal instances of bombing and other perils of terrorism, policies do not address many of the costs relating to crisis management in property and liability forms.

ISO plans to include an enhancement in a future filing that would provide ability to offer coverage with respect to crafting a public response or recovering from a financial setback arising from a human-made crisis at a premises insured under a Commercial Property policy.

Many building owners will not permit a contractor or delivery person to enter the premises unless the business carries liability insurance that covers the building owner as an additional insured.

ISO plans to file Additional Insured endorsement options, extending automatic status for designated operations and when required in a written contract or agreement.

Volunteers renting vehicles in their own name on behalf of organizations like churches and some non-profits may not be covered by the charitable organization's Hired Auto Coverage.

ISO plans to create an endorsement, similar to CA 20 54, that would generally address covered autos liability coverage for volunteers' use of autos the named insured does not own, hire or borrow in connection with the named insured's volunteering activities.

Insured contractors are being required in contracts to provide proof of insurance that includes a "per project aggregate" on both the underlying and excess liability coverages. There is currently no endorsement that specifically addresses this issue.

ISO plans to file two optional endorsements, Designated Project(s) Aggregate Limit and Designated Location(s) Aggregate Limit, for use with the ISO Commercial Liability Umbrella Coverage Part.

CG 20 15 Additional Insured – Vendors includes as an additional insured the organization shown in the schedule, but only with respect to bodily injury or property damage arising out of the named insured's products listed on the endorsement schedule. It is unclear as to the effect on coverage if the "Your Products" field is left blank.

ISO plans to introduce a new optional endorsement, Additional Insured – Vendors – Automatic Status When Required In Agreement, to generally provide coverage to all "vendors" for all products.

Under the HO-03 policy, there is a maximum coverage limit of $500 for trees, shrubs and other plants. Insureds have informed us that a maximum limit of $500 is outdated and should be increased.

ISO advises that, as part of the next homeowners multistate revision, it intends to review all special limits and will be making several changes, including increasing the limit for trees, shrubs and other plants.

The policy uses "person or organization" throughout the form, except in the subrogation section where it simply uses "person."

As part of the next homeowners multistate revision, ISO will review the policy language related to the use of "person" or "organization" and make updates where necessary.

When building crime coverage limits using multiple crime policies, it is necessary to confirm the primary and excess layers respond as expected and intended. Currently there is no allowance for listing the intended primary carrier's policy number in or on the ISO policy intended to respond as excess.

ISO plans to introduce an excess endorsement to address the situation described above with the next Crime multistate filing.

Currently the underground property endorsement only applies to a property policy, so we would like an endorsement to the BOP. Hydrostatic pressure coverage – broken pipe in yard causes water pressure which then seeps through wall into basement.

ISO plans to include a revision similar to the change communicated in item CP 14-03 with the next multistate Businessowners forms filing.

Traditionally, business income claims are dependent upon a direct loss to trigger them or upon a direct loss at a contributing, recipient, manufacturing, magnet or dependent location. However in some catastrophes, there is not direct damage that would trigger such a claim but local businesses suffer business income losses.

ISO has agreed to revise the manual rule at the next general multi state filing to recognize that the dependent property endorsements can accommodate a wide range of dependent properties, provided that the intended dependencies are scheduled.

A regional insurer offers an endorsement to Homeowners to cover underground utility lines, providing a separate per occurrence limit for piping electrical power, heating, natural gas, waste disposal, compressed air, water, steam, internet access, telecommunications services, and data transmission services. Covered causes of loss include wear and tear, rust, corrosion, decay, deterioration, collapse, electrical, mechanical, pressure systems breakdown and freezing.

ISO will include this optional coverage as part of a future multistate revision.

Under the HO 2000 program, there is an exclusion for theft in or to a dwelling under construction, or of materials and supplies for use in the construction until the dwelling is finished and occupied. This exclusion applies even if the construction is a result of a covered loss.

ISO will introduce an endorsement that will provide coverage for theft of materials used in rebuilding a dwelling that is under construction.