(August 2025)
The American Association of
Insurance Services (AAIS) has filed inland marine coverage forms, which are
subject to specific rate, rule, and form filing requirements. As a result,
these forms are less flexible and resemble commercial business personal property
coverage forms more than non-filed inland marine coverage forms. Nevertheless,
the coverage remains categorized as inland marine, which means it provides
broader protection, including coverage for property in transit and at other or
unnamed locations.
Many of these coverages are often
added to property coverage forms as supplemental coverages or extensions. The
titles of these coverages may be similar, making it crucial to compare inland
marine coverage with similarly named property coverage, as significant
differences often exist. Inland marine forms generally have fewer exclusions
and are more targeted in their scope. Additionally, they always include
coverage for transit.
The American Association of
Insurance Services (AAIS) has a specific format and arrangement for the
coverage forms and endorsements used with filed inland marine coverage. The
following forms are mandatory:
IM 7901–Inland
Marine–Declarations–Renewal Certificate
Related Article: CL 0100 AAIS Commercial
Lines Common Policy Conditions
This coverage insures the named insured’s losses for amounts
due it cannot collect because of an insured loss or damage to records of
accounts receivable. Covered losses include the following:
Risks of direct physical loss,
except as excluded or limited
The goal of every insured should
be the rapid restoration of lost records so amounts owed can be collected. Duplication
of records and storing them in an easily accessible off-site location are key
to achieving that goal.
Related Article: AAIS Accounts Receivable
Coverage Analysis
This
coverage insures camera dealers’ stock
and similar or related equipment, such as lenses, projection machines, or sound
equipment. It also covers the stock of musical instruments and similar or
related accessories and supplies, such as sheet music, instrument cases, and
music stands, held by musical instrument dealers. In both cases, it covers
similar property of others in the named insured’s care, custody, or control.
Risks of direct physical loss,
except as excluded or limited
Camera and musical instruments
are very susceptible to loss. A minor
fire can result in a total loss because of heat and smoke damage. They are also
theft targets. Effective protective devices are crucial if losses are to be minimized.
Related Article: AAIS Camera and Musical Instruments Dealers Coverage Analysis
This coverage insures a variety of dealers’ stock and other
merchandise financed through banks or other lending institutions. Coverage is
written on a reporting basis due to the property's nature and the widely
fluctuating values. Merchants involved in high-value merchandise, such as
mobile equipment and expensive household items like refrigerators and other
high-value appliances, often borrow money from banks or finance companies using
their stock or specifically identified property "on the floor" as
collateral for sale.
This coverage is unique because
the stock or merchandise must be clearly identified as specifically encumbered
to the bank or other lending institution. The dealer may only sell the
merchandise once the financial institution releases its claim on it. This
coverage form is flexible; it can be tailored to cover either the single
interest of the dealer or the lending institution, or it can cover the dual
interests of both parties..
Risks of direct physical loss,
except as excluded or limited
Documentation specifying which
items are part of the floor plan and which are included in the standard stock
is crucial to avoid overinsurance or underinsurance on the commercial property
and inland marine forms. Inadequate documentation can lead to coinsurance
penalties and higher premiums due to duplicated coverage.
Related
Article: AAIS
Floor Plan Merchandise Coverage Analysis
This
coverage insures jewelry dealers' stock of
diamonds, jewels, jewelry, watches, watch movements, and other precious and
semi-precious stones. It also covers such property held for sale. Additionally,
it covers semi-precious and precious metals, as well as alloys such as gold,
silver, and platinum.
Risks of direct physical loss,
except as excluded or limited
Form IM 1201 is also available as a
separate named perils coverage form.
This coverage is available for
retailers with inventory valued at $250,000 or less.
Related Article: AAIS Jewelry Dealers
Coverage Analysis
This form
was previously known as Implement Dealers Coverage. This coverage insures retail or wholesale mobile
agricultural and construction machinery, along with equipment,
material-handling machinery, and equipment. Vehicles designed for highway use
cannot be covered, nor can aircraft or watercraft.
Property manufactured or
sold through an installment sales plan is not eligible for this class.
Risks of direct physical loss,
except as excluded or limited
The equipment is mobile and often
left outside, so perimeter protection is key to preventing theft losses.
Related Article: AAIS Mobile Equipment
Dealers Coverage Analysis
This
coverage insures musical instruments, sheet music,
instrument cases, music stands, accessories, supplies, and stationary organs
owned by or used by professional musicians, businesses, commercial entities,
and educational institutions. It also provides coverage for similar property of
others in the care, custody, or control of the insured. Coverage can be
arranged either as a blanket policy or as scheduled items.
Risks of direct physical loss,
except as excluded or limited
Instruments are protected
worldwide. Effective inventory controls and assigning specific responsibility
for off-premises instruments are essential to prevent losses.
Related
Article: AAIS
Musical Instruments Coverage Analysis
This
coverage insures negative film and other media created
by both commercial and non-profit organizations. Media includes exposed motion
picture film, properly recorded magnetic tapes, videotapes, and similar sound
recordings. It also covers property of others under the care, custody, or
control of the insured.
Risks of direct physical loss,
except as excluded or limited
Film is easily
damaged, and re-filming incurs high costs. Implementing loss control measures
with clearly assigned responsibilities is essential for managing potential
losses.
Related
Article: AAIS
Negative Film Coverage Analysis
This
coverage protects cameras and all types of photographic equipment, projection
machines, and movable sound equipment owned or used by businesses, commercial
enterprises, and non-profit organizations. It also includes similar property
belonging to others in the insured’s care, custody, or control. Coverage can be
obtained on either a blanket or scheduled basis..
Risks of direct physical loss,
except as excluded or limited
Equipment is protected worldwide
and is highly valuable and appealing to thieves. To control losses effectively,
it is essential to have proper inventory management and clear individual
responsibility for equipment used off-premises.
Related
Article: AAIS
Photographic Equipment Coverage Analysis
This
coverage insures medical equipment and surgical
instruments used by doctors and dentists. The primary coverage includes tools,
materials, supplies, equipment, and scientific books they typically carry
between locations. It also covers similar property of others under their care,
custody, or control. Additionally, coverage can be extended to include
furniture, fixtures, equipment, and tenant improvements.
Risks of direct physical loss,
except as excluded or limited
There are no location or premises
restrictions for covered medical equipment property. When coverage is expanded
to other items such as furniture, fixtures, and other equipment, coverage for
those items is limited to the listed and described premises.
Related
Article: AAIS
Physicians and Dentists Equipment Coverage Analysis
This
coverage insures automatic, electric, fluorescent,
mechanical, or neon signs. It also includes coverage for lamps, street clocks,
and supporting data processing equipment. The property can be covered either on
a scheduled or unscheduled basis.
Risks of direct physical loss,
except as excluded or limited
The coverage is subject to a 100%
coinsurance provision. A 5% deductible applies based on the limit of coverage.
Related Article: AAIS Sign Coverage Analysis
This
coverage insures scenery, costumes, and other
theatrical property used in stage plays and theatrical productions. It is based
on the specific play or production and applies wherever the traveling company
and production are located, within the territorial limits. The coverage is
written per production on a non-reporting basis.
Risks of direct physical loss,
except as excluded or limited
An updated, current inventory and
clearly defined individual responsibility for the property are important parts
of underwriting this coverage.
Related Article: AAIS Theatrical Property
Coverage Analysis
This
coverage insures documents, records, manuscripts,
maps, films, prints, books, deeds, mortgages, and copyright and patent rights
related to key products and similar materials for commercial enterprises.
Risks of direct physical loss,
except as excluded or limited
Items that cannot be replaced
with similar materials must be listed on the Schedule of Coverages. A limit
must be set for these items, as unlisted irreplaceable items have no coverage.
Related Article: AAIS Valuable Papers and
Records Coverage Analysis