What it does

The Commercial Property Conditions limit the coverage territory to the United States, its territories and possessions, Puerto Rico and Canada. CP 15 01 sets aside the Coverage Territory condition for this coverage. It pays business income loss from a suspension caused by direct physical loss at the premises of a scheduled "dependent property" abroad, either a contributing location (supplier) or a manufacturing location (contract manufacturer). Optional unnamed secondary contributing locations may be included.

Key provisions

• The Schedule names each location and its limit. Limits are separate from the business income limit for the insured's own premises.
• The Schedule specifies which Causes of Loss form (Basic, Broad or Special) and which endorsements apply to the dependent properties. Perils can differ from those at the insured's own premises.
• No coverage when the only damage is to electronic data.

Quoting and selling notes

• Identify single-source overseas suppliers and estimate the time to re-source.
• Underwriters may restrict perils or limits for high-catastrophe regions.
• CP 15 02 is the extra expense counterpart.