What it does
CP 15 08 modifies CP 00 30 or CP 00 32. It pays the actual loss of Business Income during the period of restoration when operations are suspended because of direct physical loss by a Covered Cause of Loss at the premises of a "dependent property" named in the Schedule. Dependent properties are:
- Contributing locations, which supply materials or services to the insured.
- Recipient locations, which accept the insured's products or services.
- Manufacturing locations, which make products for delivery to the insured's customers under contract.
- Leader locations, which attract customers to the insured's business, such as an anchor store.
Key provisions
- "Broad form" means the business income coverage form's provisions, including its Limit of Insurance, apply separately to each dependent property. No separate sub-limit applies.
- Optional secondary dependencies: unnamed "secondary contributing locations" (a supplier's supplier) and "secondary recipient locations". Payment for these is capped at the Business Income limit and does not increase it.
- No coverage when the only damage at the dependent property is to electronic data.
Quoting and selling notes
- Map the client's supply chain. Ask which single supplier or customer would shut them down if it burned, and name it in the schedule.
- Compare with the Limited Form (CP 15 09), which uses separate scheduled sub-limits. Use CP 15 34 for extra expense, and CP 15 01 / CP 15 02 for dependent properties abroad.
- Most suppliers' losses come from perils like flood or earthquake that may be excluded. Coverage follows the policy's Causes of Loss form.
