The American Association of Insurance Services (AAIS) is creating standardized forms for insurers seeking to write property coverage for equipment sales and rental operations.
AAIS, a national insurance advisory organization that develops policy forms and rating information, is adding a new class of coverage—Equipment Sales and Rental—to its “Inland Marine Guide.” The “Inland Marine Guide” is a resource of forms, rating procedures, underwriting guidelines and other information for the traditionally non-filed classes of inland marine insurance, the association says.
According to the AAIS, the new Equipment Sales and Rental class features a base form that provides open perils coverage for agricultural, construction and other kinds of mobile equipment held for sale or rental and described on a schedule. Coverage also is provided for parts and accessories, for equipment of others the insured is servicing and for loss to rented equipment when the lessee fails to meet obligations to insure it.
The form includes two options for providing the principal property coverage: "Inside and Outside Building Coverage," and "Separate Limit Coverage." A schedule of coverages is provided for each option; the insurer makes its selection among the options by utilizing one or the other schedule.
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