JERSEY CITY, N.J., August 27, 2001 — Insurance Services Office, Inc. (ISO) has expanded its Market Segments insurance line by adding programs for Self-Storage Facilities, and Hotels, Motels and Inns.
With the latest additions, the ISO line of business now provides specialized coverages for five specialty-insurance market products, including auto service, restaurant and supermarket risks.
The new ISO specialty-insurance products for self-storage facilities, and hotel, motels and inns provide enhanced property and liability coverages, as well as optional endorsements for additional coverage. Coverages for self-storage facilities, and hotels, motels and inns are currently provided through commercial package or monoline policies.
"Insurer acceptance of our existing 'ready-to-use' programs is the driving force behind the new specialized-coverage products," said Domenick J. Yezzi, Jr., ISO's vice president - specialty commercial lines. "The latest expansion of our market-segments program should help insurers target high-growth potential market niches and provide their customers with more convenient, value-added products."
The ISO Market Segments line of business, launched in 1999 with the auto service risks program, is advisory in nature and offers "wrap-around" endorsements that modify one or more of ISO's monoline coverage forms. The monoline forms are the basis of coverage to which specific coverage enhancements are added for the specialized coverage needs of these niche-market businesses.
The ISO Market Segments programs incorporate in one endorsement the main coverages these risks typically require, while offering additional coverages through optional endorsements.
ISO has filed the policy forms, rules and loss costs for the two new market-segments products for approval with insurance regulators in 37 jurisdictions. Following approval, the hotels, motels and inns program will become effective in January 2002 and self-storage facilities in April 2002.
The self-storage facilities program covers the warehouses and mini-warehouses classification in the ISO commercial lines classification table.
The hotels, motels and inns program covers six major classes of business Ã– hotels, motels and inns with pools or beaches and less than four stories high; hotels, motels and inns with pools or beaches, and four stories or higher; hotels, motels and inns without pools or beaches and less than four stories high; hotels, motels and inns without pools or beaches, and four stories or higher; hotels, motels and inns (lessor's risk only) and less than four stories high; and hotels, motels and inns (lessor's risk only), and four stories or higher.
Common Property and Liability Coverage Enhancements
The mandatory wrap-around endorsements for both the self-storage facilities, and hotels, motels and inns programs modify the ISO Commercial Property Building and Personal Property Coverage Form, the Commercial General Liability Coverage Form and the Causes of Loss - Special Form.
Common to both programs are enhancements to the ISO Commercial Property Building and Personal Property form that provide increased limits and additional coverage for:
A basic coverage limit is provided for each of these categories. Optional higher limits are also available for many of these.
Enhanced liability coverage for self-storage facilities includes the insured's liability to pay because of property damage to a customer's property at the facility, with a limit of $100,000 per occurrence. The insured's liability arising out of the sale, removal or disposition of customers' property is also covered up to an annual aggregate limit of $5,000.
The hotels, motels and inns program also provides coverage for fine arts up to $25,000, computer fraud up to $25,000, loss or damage to guests' property up to $10,000, and food contamination and spoilage. In addition, errors and omissions liability coverage is provided for failure to provide facilities, goods and services up to an annual aggregate limit of $25,000.
The two new programs provide additional coverage through optional endorsements, two of which are common to both mechanical breakdown and hired auto and non-owned auto liability.
For more information on pricing and participation in ISO's Self-Storage, and Hotels, Motels and Inns Market Segment programs, call ISO Customer Service toll-free at 800-888-4476, or contact by e-mail at: email@example.com.