In the standard Commercial Property Building and Personal Property Coverage Form, business personal property is covered from certain named perils, but only to the extent that the property (at the time of the loss) was located in or on the building described in the Declarations or in the open (or in a vehicle) within 100 feet of the described premises. It is important to have a legal professional specializing in insurance coverage examine the entire policy to ensure that the business has the coverages from losses that the business needs and expects (e.g. theft, loss away from premises).

As mentioned above, the \”100 foot rule\” often arises in cases of theft of business personal property that was left in a vehicle or trailer in the businesses parking lot. If the business described in the Declarations is a stand alone business where the entire building is owned or leased by the business, then as long as the trailer is parked within 100 feet of the building, then there should be no coverage dispute, at least concerning this particular coverage provision.

The problem arises when the business property is stolen from a truck or trailer owned by the business that was in a parking lot shared by dozens of businesses (e.g. a mall or shopping center). See Evergreen National Indemnity Co. v. Tan It All, Inc., 111 S.W.3d 669 (Tex. App. – – Austin 2003, no writ). In Evergreen, the business sued its insurer under its commercial property policy after some tanning beds were stolen from trucks that were parked in the shopping center parking lot. While the trucks were within 100 feet of the shopping center structure, the trucks were NOT within 100 feet of the portion of the shopping center leased by the business, and more importantly, within 100 feet of the premises described in the Declarations. The Declarations properly identified the business location by physical location (the shopping center) and the specific suite number occupied by the business.

The Court of Appeals held that there was no ambiguity in the Declarations regarding the loss location, and the denial of coverage using the 100 foot rule was upheld. As I have emphasized in prior articles, every word in an insurance policy, and here, in the Declarations, has a purpose. So, for the business owner, when leaving at night, make sure that coverage will exist should a named peril cause a loss of business personal property by parking the business trucks and trailers within 100 feet of the portion of the building described in the Declarations.

There are other protections available for a business to protect against theft of business personal property, whether or not it is within 100 feet of the insured location described in the Declarations. For example, the business could purchase a Commercial Inland Marine Condition Policy that should provide coverage for theft of business personal property “off premises.” In addition, if that coverage alone is insufficient based on the type of work performed by the business, the business could purchase supplemental business personal property coverage that expands the named perils that are covered.

http://www.jonathanallenlaw.com I specialize in the resolution of insurance coverage and commercial disputes, as well as construction defect claims and general liability suits brought by contractors and employees. I assist area businesses in addressing these disputes, often at the request of insurers.

http://www.jonathanallenlaw.com I specialize in the resolution of insurance coverage and commercial disputes, as well as construction defect claims and general liability suits brought by contractors and employees. I assist area businesses in addressing these disputes, often at the request of insurers.

Author Bio: http://www.jonathanallenlaw.com I specialize in the resolution of insurance coverage and commercial disputes, as well as construction defect claims and general liability suits brought by contractors and employees. I assist area businesses in addressing these disputes, often at the request of insurers.

Category: Business Management
Keywords: Commercial General Liability, Business Personal Property, Theft Loss