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AAIS's commercial lines programs provide cost-effective forms, manual
rules, and loss cost rating information used by carriers to compete for
standard commercial accounts.
Over the years, AAIS has been the source of some innovations in
commercial lines, including the first standardized endorsements for
providing employee benefits liability coverage, and for adding employment practices liability coverage onto a small
business policy. Both of these options were developed to provide coverage on
a claims-made basis, even when the underlying policy has an occurrence
trigger.
All AAIS commercial lines programs include the full range of
endorsements, rating information, policyholder notices, and other
information needed to comply with the federal Terrorism Risk Insurance Act.
The Artisans Program
provides a ready-made package of coverages for an artisan contractor
account, which can be insured for property and liability or for
liability only. Whether they are sole tradesmen or firms with up to 10
employees, operations with up to $3 million in sales or $500,000 in
payroll are eligible. 
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The Artisans Program emphasizes liability coverage, and broad form
contractual liability coverage is built into the base form, as is
coverage for damage to property of others, up to a $10,000 limit.
(Limited contractual liability coverage can be substituted by
endorsement.)
Under this program, the general aggregate limit can be applied per
project, thus meeting a common requirement of general contractors. Other
liability features of this program include:
- Additional insured options that eliminate the need to write
Owners and Contractors Protective (OCP) policies
- A "voluntary" property damage coverage option that works like a
"medical payments" provision for property damage claims
- Rating information for XCU exposures
Endorsements are available to limit or exclude coverage for claims
arising from mold and construction defects; one specifically addresses
losses arising from the synthetic stucco known as "EIFS."
Another endorsement excludes coverage for "known injury or damage,"
addressing "continuous trigger" claims inspired by the Montrose
ruling.
The Artisans Program provides open perils property coverage in the
base form, along with coverage for business personal property away from
insured premises. An option is available for increasing the off-premises
property limit. Other property features include:
- A choice of three different endorsement packages of additional
property and inland marine coverages
- Options to cover contractors' tools and equipment on a blanket
or scheduled basis
- An option to provide installation floater coverage with a
selected limit
Rating information for the Artisan Program is based on easy-to-verify
rating bases (per employee for liability coverage, per $1,000 for
property). |
The Businessowners Program,
revised in 2004, provides the traditional choice between a named perils
Standard form and an open perils Special form for insuring small businesses,
offices, apartment buildings, warehouses, wholesalers, restaurants, and
other operations. Among other things, this program includes an innovative
mechanism for rating off-premises liability exposures.
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Both the named and open perils forms provide all standard principal
coverages, including income coverage. Beyond that, carriers can trigger
built-in commercial crime coverages by making entries in the
declarations, then select from a range of coverage options, including:
- An option to add equipment breakdown coverage;
- A choice of four endorsement packages that provide additional
commercial property and inland marine coverage;
- Separate options for writing employment practices liability
coverage and employee benefits liability coverage (each with a
claims-made trigger); and
- Additional liability coverage options, such as printers errors
and omissions
The latest revision expands building property coverage to include the
value of building glass, and adds new additional coverages and coverage
extensions.
The revision introduces a countrywide manual with countrywide rules,
classifications, and rating information, plus individual state pages
that include territorial definitions, state-specific exceptions to
countrywide materials, and state-specific rating information. |
The Commercial Umbrella/Excess Liability Program
has a unique policy structure that minimizes the
possibility of coverage gaps or unintended exposures, plus a range of
exclusions for avoiding undesired exposures.
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Coverage E (Excess) provides "follow form" coverage in excess of
required limits in any type of underlying policy, AAIS or non-AAIS, that
covers commercial auto liability, commercial general liability,
professional liability, and other liability exposures. The follow form
coverage automatically adheres to the trigger (occurrence or claims
made) in the underlying forms, even when triggers differ among
underlying policies.
Coverage U (Umbrella) provides "drop down" coverage for premises and
operations exposures not addressed and not excluded in the underlying
commercial general liability policy.
While written to provide peace of mind to insureds, Coverage U in
itself should not create additional exposures for insurers that do a
thorough job of structuring and rating their underlying policies.
This program also provides:
- Endorsements for excluding whole categories of exposure (autos,
watercraft, professional liability, etc.)
- Endorsements for excluding specific exposures (designated autos,
designated premises, designated products, and designated work)
- Absolute exclusions for pollution and lead liability
Because the AAIS Commercial Umbrella policy can be written over
underlying policies from any industry source, it is a good tool for
writing layered coverage, wherein various insurers and reinsurers assume
liability for losses between specified amounts. |
Commercial Monolines
provide forms, rules, and rating information that are
consistent with industry standards. The booklet-style forms can be
written as monoline policies or packaged with other industry forms.
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The Commercial Liability Program
features five basic forms: commercial liability, broad form commercial
liability, owners and contractors protective, premises only, and farm
premises and operations.
Endorsements are available to limit or exclude coverage for claims
arising from construction defects, mold, synthetic stucco, and known
injury.
The countrywide manual provides inflation-sensitive rating bases,
such as sales receipts, plus a countrywide classification table.
State-specific premises/operations and products/completed work rating
information is organized by a five-digit class code.
The Commercial Properties Program
provides standard industry coverages in a simplified policy structure
Class rating is offered for a wide variety of risks, along with detailed
manual rules with explicit rating instructions. Manual lists of
statistical codes are provided for risks that are specifically rated.
The Crime Program Includes several
coverage parts that can be packaged together or written separately:
- A single form providing combined coverage for money/securities,
burglary/robbery, and employee dishonesty
- Separate forms for providing coverage for securities,
burglary/robbery, limited burglary/robbery and employee dishonesty
- In addition, separate forms are available for covering computer
fraud, premises' liability for guests' property, theft loss to
churches, and loss arising from currency; money orders; or travelers
checks that are counterfeit or not redeemable.
A sample crime coverage declarations page is filed on an advisory
basis.
The Glass Program provides
simplified rating plan based on square feet. An experience rating plan
available
The Combination Policy Program (manual
only) provides concise rules and premium modification factors for
packaging monoline coverage parts with other AAIS or non-AAIS forms.
This program provides package modifiers that apply to both property and
liability coverages, and includes individual risk premium modification (IRPM)
factors. |
American Association of
Insurance Services
1745 S. Naperville Road | Wheaton, IL 60187-8132
630-681-8347 | 800-564-AAIS | Fax 630-681-8356
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