1. Forms
2. CP
3. CP-12-30

Form CP 12 30: Radio Or Television Antennas Exclusion

What the form is:

The CP 12 30, Radio Or Television Antennas Exclusion, is an endorsement to a Commercial Property policy that specifically excludes coverage for loss or damage to radio or television antennas. This exclusion extends to related equipment such as lead-in wiring, masts, and towers. Essentially, if this endorsement is attached to the policy, the insurer will not pay for damages to these types of property, regardless of the cause of loss, unless an exception is specifically stated elsewhere in the policy or another endorsement is added to provide coverage (like the CP 14 50 Radio or Television Antennas endorsement). It's important to note that standard Commercial Property forms, like the CP 00 10, often provide limited coverage for outdoor property, including antennas, under a Coverage Extension, but this is typically a small sub-limit and may only cover specific perils like fire, lightning, explosion, riot or civil commotion, or aircraft. The CP 12 30 endorsement removes even this limited coverage for the specified antenna property.

Classes of business it applies to:

This endorsement can be applied to a wide range of commercial properties that have exterior radio or television antennas. Examples include:

• Broadcasting companies: Radio and television stations with large transmission towers and antenna arrays.
• Telecommunication companies: Businesses relying on microwave or other antenna-based communication systems.
• Real estate owners: Commercial building owners (e.g., office buildings, apartment complexes) that may have master antennas or satellite dishes for tenant use.
• Hospitality businesses: Hotels or motels providing television services to guests via large antenna systems.
• Any business with significant, valuable, or high-risk antenna installations: This could include businesses in areas prone to high winds, hail, or ice storms where antennas are particularly susceptible to damage.

The decision to use this endorsement often hinges on the insurer's desire to avoid covering property that is highly susceptible to damage from perils like windstorm or hail, or that may have unique valuation or repair challenges.

Special considerations:

• Coverage Gap: The primary consideration is the significant coverage gap this endorsement creates. The insured will have no coverage under the Commercial Property policy for their radio or television antennas, including lead-in wiring, masts, or towers, if this form is attached.
• Alternative Coverage: If coverage for antennas is desired, a separate endorsement, such as the CP 14 50 Radio or Television Antennas, would need to be added to the policy. This separate endorsement allows the insured to schedule the antennas, provide a specific limit of insurance, and select the applicable causes of loss.
• Risk Appetite: Insurers may use this endorsement for risks where they are unwilling to provide coverage for antennas due to factors like age, condition, height, location (e.g., coastal or high-wind areas), or insufficient underwriting information.
• Business Income Impact: It's important to consider that business income coverage forms may also exclude loss of income resulting from damage to radio or television antennas. If a business relies on its antennas for its operations (e.g., a broadcast station), damage to an excluded antenna could lead to an uncovered business income loss unless an endorsement like the CP 15 50 Radio or Television Antennas – Business Income or Extra Expense is also attached to the policy.
• Lessor/Lessee Agreements: In situations where a tenant is responsible for insuring antennas they have installed, this exclusion could impact their ability to meet lease obligations if they are unaware of the exclusion.

Key information for agents and underwriters:

• Risk Assessment: Underwriters should carefully assess the exposure presented by radio and television antennas. Factors include the value, age, construction, height, and susceptibility to wind, ice, and lightning. The presence of this exclusion significantly reduces the insurer's exposure to antenna-related losses.
• Pricing: Attaching the CP 12 30 would typically result in a premium credit or avoid a surcharge that might otherwise apply if antenna coverage were provided, especially for antennas with high values or in high-risk locations.
• Coverage Gaps & Client Communication: Agents must clearly communicate the impact of this exclusion to the insured. If the insured has valuable antennas and requires coverage, the agent should discuss options for buying back this coverage, such as through the CP 14 50 endorsement. Failure to do so could lead to an errors and omissions exposure for the agent.
• Underwriting Guidelines: Company underwriting guidelines will dictate when this exclusion should be used. It might be mandatory for certain classes of business, antenna types, or in specific geographic areas known for severe weather. Some insurers may prefer to exclude antennas outright rather than attempt to underwrite and price the exposure adequately.
• Interaction with Other Forms: While the summary states "Related Forms: None," it's crucial to understand how this exclusion interacts with the base Commercial Property coverage form (e.g., CP 00 10) by removing the limited coverage that might be available under the Outdoor Property coverage extension. Furthermore, if the insured *does* want coverage, then forms like CP 14 50 (for direct damage) and CP 15 50 (for time element losses) become relevant.