1. Forms
  2. CM
  3. CM-00-21

What it does

CM 00 21 covers a dealer's stock in trade consisting principally of cameras or musical instruments and related equipment and accessories, plus similar property of others in the dealer's care (customer repair and consignment items). It is open-perils coverage within the United States, its territories, Puerto Rico and Canada.

Who needs it

Camera stores, music stores and similar dealers whose inventory moves among the store, shows, repair shops and customers. A standard commercial property form covers stock only at described premises; this dealers form follows the stock.

Key provisions

  • Not covered: property sold and delivered (including installment sales), money and securities, furniture, fixtures, machinery, tools and improvements (these can be added with CM 99 01), property in the mail unless registered or government insured mail, contraband.
  • Exclusions: earthquake and flood at the insured's premises (they apply only at the premises), theft from an unattended vehicle without forced entry into a locked vehicle, marring and breakage of glass articles (except lenses) unless caused by named perils, unexplained disappearance, inventory shortage, dishonest acts, processing or work, artificially generated current, and wear, mechanical breakdown, rust, dampness, cold or heat.
  • Theft damage to buildings is covered as an extension if the insured owns the building or is legally responsible.
  • Valuation: unsold stock at the least of ACV, restoration or replacement cost; sold-not-delivered property at net selling price; property of others at the insured's liability plus added labor and materials, capped at ACV.
  • Conditions: records kept three years and a physical inventory every 12 months; protective safeguards described at inception must be maintained or coverage at that location is suspended.

Quoting and selling notes

Ask for average and peak inventory, alarm and safe details, the share of customer-owned property, show and trade-fair exposure and shipping methods. Coinsurance applies unless the reporting endorsement CM 99 02 is attached; that endorsement suits dealers with seasonal stock swings. Earthquake and flood at the store need to be bought back or covered elsewhere.

Related forms

CM 00 01, CM 99 02, CM 99 01, CM 00 20 (for equipment users rather than dealers).