For businesses that do not own their own buildings, a real property exposure can still exist in the form of rented or leased premises and for improvements and betterments that may have been added to such buildings. These risk considerations can be especially relevant for organizations that maintain computerized or other types of specialized equipment where extensive modifications to a building are often required. In these situations, adding the items to the building limit of the property policy can provide coverage for improvements and betterments. Conversely, damage to the actual rented premises is normally insured under the CGL policy's fire damage coverage or when broader all risk protection is required, with a legal liability coverage form (CP 00 40) that includes special causes of loss protection. Rental contracts under which an insured assumes primary responsibility for loss to their rented premises will probably require that first party coverage be written to protect the interest of the building owner.

In many communities, ordinances or laws have been enacted that require any building which is damaged beyond a certain extent (usually 50 percent) to be either torn down, rebuilt, or brought up to current building codes that exist at the time of the loss. Normally, Building Ordinance Insurance can be added to the basic property form to provide protection against such an exposure. For example, ISO's version (CP 04 05) is written as three separate coverage sections. These include:(1) additional costs needed to rebuild a damaged structure up to current building codes, (2) recovery for any undamaged portions of a covered structure that must be destroyed in accordance with building codes, and (3) the actual expenses of demolishing the undamaged portion of a covered structure. Additionally, a time element coverage called Increased Period of Restoration Insurance (CP 15 31) can be written along with this direct damage insurance to provide for loss of income that can result because of the extra time required to comply with rebuilding laws.

Although accounts of this nature do not generally have a high need for business income coverage, many may require Extra Expense Insurance to help pay for the necessary additional expenses needed to continue business when a covered loss damages or destroys insured property. Actual extra expenses will of course vary but may include items such as employee overtime, supplemental advertisement expenses, renting of temporary office premises or vehicle storage sites, and reimbursement for costs associated with general business expenses such as the rental of temporary phones, faxes, copiers, etc.

Many of these accounts can use extensive values of electronic equipment in their operations. Due to the nature of such equipment, it is often desirable to insure this property with some type of Computer Policy that is designed to handle the unique coverage considerations for this type of property. Often, such forms will include coverage for loss of media, extended perils protection (flood, earthquake, equipment breakdown, etc.), and various valuation options (i.e. replacement cost, functional replacement, upgraded value) that may not be available under most standard property forms.

A Tool and Equipment Floater may also be necessary to insure equipment that a company uses for off premises service or installation work. This policy can be written on either a scheduled or blanket basis. Most forms will be written using all risk protection and actual cash value valuation. There are a number of exclusions, extensions, and options that carriers may consider adding to customize this policy to fit the needs of this type of insured.

Because of the type of operations conducted by these insured's, many can be exposed to environmental hazards that are not covered under their general liability policy. Liquids spilled as a result of an accident during transportation, materials at a business site that are released into the atmosphere causing environmental damage, or even old underground storage tanks that leak fuel into the ground are all examples of "pollution claims" that normally can only be covered by the purchase of Pollution Liability Insurance. Although some carriers will occasionally write such coverage as an endorsement to their standard CGL policy, most forms of this coverage are written as a separate policy that includes its own policy provisions and limits.

Today, more and more trucks are being equipped with a variety of audio, visual and data electronic equipment. Most carriers provide a buy back for loss to such equipment by endorsement. You will find that most of these endorsements follow ISO's format and limit the scope of the coverage provided under the form to equipment that is either permanently installed or that is removable in conjunction with a permanently housed unit. Items that do not fall under this strict definition can usually be insured by use of a separate inland marine equipment floater.

The Garage Coverage Form is the main policy that is used to insure most garage type businesses. ISO's version of this policy is divided into six different sections including three that deal with standard policy provisions, definitions, and symbol descriptions (sections I, V, and VI) and three that deal with actual coverage considerations: Garage Liability, Garagekeepers Coverage, and Dealers Physical Damage. These types of businesses would be covered under the first two items listed unless they are also a dealer.

Garage Liability (Section II) This section insures against liability claims arising out of operations including premises/operations, products/completed operations, contractual liability, and use of auto exposures. The scope of the coverage will depend upon the symbols used but no matter which symbols are selected this coverage will only cover garage related activities. Consequently most carriers will write a supplemental General Liability Policy to cover any non-auto exposures that a business may entertain.

Garagekeepers Coverage (Section III) This section pretects agains claims arising out of damage to vehicles owned by others that are left for storage, service, safekeeping, or repair. There are three basic coverage options under this section:

• Legal Liability - which pays only when legal liability can be proven.
• Direct Primary - which pays regardless of fault. This option provides broader coverage than the Legal Liability option but is more expensive.
• Direct Excess - which also pays regardless fo fault but only as excess over the customer's policy.

Garagekeepers coverage can be written for two basic perils. Specified Perils, which covers perils specified in the policy and Comprehinsive Perils, which insures all perils except those specifically excluded. Collision Coverage can be included.

Many carriers have beun making a seperate charge for on hook liability coverage for towing operations. This is usually done by limiting the garagekeepers coverage section of the primary garage policy to "on premises" protection only and attaching a seperate "On-Hook" Endorsement whereby a schedule is used to list the tow trucks and the limit of liability that applies to each truck.

Many of these businesses frequently work with property other than autos. Consequently, some carriers will modify their garage policy by broadening the definition of a "covered auto" to include coverage for items such as watercraft, farm machinery, aircraft or other non-automotive equipment that may be in their care. Please note that this modification should be added to both the physical damage and garagekeepers sections fo the garage policy when appropriate. See manuscript endorsements for sample endorsement wording.