What’s New in ISO’s

Commercial Lines Programs

AICP Gulf States E-Day

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I S O C o m m e r c i a l L i n e s C h a n g e s

“I am always ready to learn although I do not always like being taught.” “I am always ready to learn although I do not always like being taught.”

— Winston Churchill

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2013 Commercial Lines Multistate

Filings

ISO Program | Implementation beginning….• Commercial property – April 2013

• General liability – April 2013

• Umbrella/excess – April 2013

• Capital assets – April 2013

• Inland marine – April 2013

• Equipment breakdown – April 2013

• Businessowners – July 2013

• Market segments – July 2013

• Crime & fidelity – August 2013

• Financial institutions – September 2013

• Commercial auto – October 2013

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ISO Commercial Lines Changes

Commercial Property

• April 2013 implementation date

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Commercial Property Multistate:

Policy Form

• Electronic data (building control systems)

• Vegetative roof

• Personal property in portable storage unit

• Described premises related revisions (100 feet

from the building or premises described)

•Debris removal

•Water damage

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Commercial Property Multistate:

Endorsements

• Secondary dependencies (time element)–Supply chain vulnerability

• Food contamination

• Equipment breakdown option• Equipment breakdown option

•Discharge from sewer, drain or sump (not flood-related)

• Increase in rebuilding cost following disaster

• Interruption in wastewater removal service

• Production and processing operations (rental properties)

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Commercial Property Multistate:

Other

• Introduce rating / statistical reporting

classifications for:

oSolar panels (field arrays)

oFree-standing wind turbinesoFree-standing wind turbines

oElectric vehicle charging stations

• Community Mitigation/Public Protection

Classification Revisions

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ISO Commercial Lines Changes

General Liability

andand

Umbrella/Excess Liability

• April 2013 implementation date

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ISO General Liability Program

2012 Multistate Revision

Program revisions include:

• Coverage form revisions

• Endorsement revisions

• New endorsement options

Highlights Include:

• Revisions to the CGL liquor

liability exclusions to address

BYO Establishments

• New classifications, loss costs

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• Manual revisions

• Introduction of several

classifications

• New classifications, loss costs

and ELPs for BYO

establishments

• New and revised additional

insured endorsement options

• Primary and noncontributory

endorsement option

ISO Umbrella/Excess Liability

2012 Multistate Revisions

Program revisions include:

• Track applicable GL revisions

• Coverage form revisions

• Endorsement revisions

Highlights include:

• Introduction of a condominium,

co-ops, associations –

directors and officers liability

coverage endorsement

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• New endorsement optionscoverage endorsement

• Introduction of various optional

exclusion endorsements for

use with the commercial

excess liability program

ISO Commercial Lines Changes

BusinessownersBusinessowners

• July 2013 implementation date

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Businessowners Multistate Form

and Endorsement Revisions

• Updates complementing recent revisions made to

ISO’s commercial property and general liability

programs

•New class-specific endorsements introduced•New class-specific endorsements introduced

for photography servicesoPhotography endorsement (BP 07 83)

oPhotography – makeup and hairstyling (BP 07 84)

oPhotography – amendment of coverage territory for photographic

equipment – worldwide coverage (BP 07 87)

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Restaurants: Bring Your Own Alcohol

Establishments Classifications

• Newly added businessowners classifications addressing

“BYO” restaurant establishments

–09671 – bistros, brasseries and cafes – bring your own alcohol

establishments – with no sales of alcoholic beveragesestablishments – with no sales of alcoholic beverages

–09681 – diners – bring your own alcohol establishments – with

no sales of alcoholic beverages

–09691 – family-style restaurants – bring your own alcohol

establishments – with no sales of alcoholic beverages

–09451 – fine dining – bring your own alcohol establishments –

with no sales of alcoholic beverages

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ISO Commercial Lines Changes

Crime & Fidelity

• August 2013 implementation date

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ISO Crime & Fidelity Program

Multistate Revision

• New and revised forms for commercial and

government entities

oRevised and combined computer fraud and funds transfer fraud

insuring agreementsinsuring agreements

o Introduced a data security breach exclusion in response

to Retail Ventures, Inc. v. National Union Fire Insurance Company

oRevised the “money” definition to include electronic deposits in the

insured’s account at a financial institution

oProvided new endorsements to expand coverage territory

worldwide

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ISO Commercial Lines Changes

Financial Institutions

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ISO Financial Institutions Program

Multistate Revision

• Newly introduced Credit union and mortgage bankers

policies

• Implemented beginning September 2012

• Final phase of the ISO financial institutions• Final phase of the ISO financial institutions

crime program roll out

• Newly introduced data security breach exclusion in

response to Retail Ventures, Inc. v. National Union Fire

Insurance Company

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ISO Commercial Lines Changes

Commercial Automobile

• October 2013 implementation date

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Commercial Automobile

2013 Program Update

• Introduction of auto dealers programoAuto dealers coverage form introduced

oGarage coverage form withdrawn

oSignificant number of new, revised, and withdrawn oSignificant number of new, revised, and withdrawn

endorsements and declarations

oNew and updated rules and loss costs

oRelated commercial umbrella form and rule revisions to

be filed

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Commercial Automobile

2013 Program Update

•Auto dealers coverage formo“One-stop” shopping for auto dealer risks

oBundles commonly requested coverages, such as

locations and operations medical payments, and locations and operations medical payments, and

personal injury and advertising injury (PI & AI)

oIncludes newly developed “Acts, Errors,

and Omissions” coverage section

oCustomizable via endorsement(s)

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Commercial Automobile

2013 Program Update

• 26 new optional endorsements, notably:

oEmployee Benefit Liability Coverage – provides E&O coverage related

to the administration of an employee benefits program. Claims-made

basis, with ERP option

oLimited Products Withdrawal Expense Coverage – generally provides

reimbursement for certain expenses incurred because of product

withdrawal with respect to a recall or tampering

oAdditional Insured Endorsements - affording insured status with

respect to GL related coverages. e.g. concessionaires trading under

your name, lessor of leased equipment, and co-owner of premises

oCustomer Complaint Legal Defense Coverage – defense coverage

only, no indemnification. Subject to aggregate limit

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ISO Commercial Lines Changes

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Down the Road….

Questions

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Questions

Contact Information

William Mauro

Manager - Commercial Casualty

ISOISO

Wmauro@iso.com

(201) 469-2704

No part of this presentation may be copied or redistributed without the prior written consent of ISO. This material was used exclusively as an exhibit to an oral

presentation. It may not be, nor should it be relied upon as reflecting, a complete record of the discussion.

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