1. Forms
2. CM
3. CM-00-26

What the form is

The Physicians and Surgeons Equipment Coverage Form (CM 00 26) is a commercial inland marine insurance form. It offers 'open perils' (also known as 'all-risks') coverage, meaning it covers direct physical loss or damage from any cause unless specifically excluded. The primary purpose of this form is to insure three main classes of property for medical professionals: professional equipment (medical and dental tools, instruments, etc.), office equipment (furniture, computers, etc.), and the insured tenant's interest in improvements and betterments made to a leased property.

Classes of business it applies to

This form is specifically designed for:

• Physicians
• Surgeons
• Dentists
• Other medical professionals who own or are responsible for specialized equipment essential to their practice.

Real-world example: A surgeon's office could use this form to insure their examination tables, diagnostic equipment (like X-ray machines or ultrasound devices), surgical instruments, as well as their office computers and furniture. If they have made significant, permanent alterations to their leased office space (e.g., custom cabinetry, specialized plumbing for equipment), their insurable interest in these improvements could also be covered.

Special considerations

• Open Perils Coverage: While broad, 'open perils' coverage is still subject to a list of exclusions detailed in the form and any attached endorsements. Common inland marine exclusions typically apply.
• Water Damage: The form contains specific conditions regarding water damage, which may include exclusions for flood, surface waves, and similar perils. However, it might cover resulting direct loss from fire, explosion, or theft if these are otherwise covered perils.
• Coinsurance: This form may be subject to a coinsurance clause, which requires the insured to carry a certain percentage of the property's value in insurance. Failure to meet this requirement can result in a penalty at the time of a partial loss. Some endorsements, like CM 26 01 or CM 26 02, may modify or delete the coinsurance provision.
• Declarations Page: The CM DS 12, Advisory Physicians and Surgeons Equipment Declarations, is used in conjunction with this form to specify limits of insurance, deductibles, and other key policy details.

Key information for agents and underwriters

• Risk Assessment: Underwriters need to carefully assess the types and values of equipment being insured. Specialized medical equipment can be very expensive and technologically sensitive. The location of the practice and security measures in place are also important risk factors.
• Covered Property Definition: It's crucial to clearly define what constitutes 'covered property'. Endorsements like CM 26 01 (Property Usually Carried By You) can significantly alter this definition, potentially limiting coverage to items typically transported by the insured. This is important for physicians who may carry equipment to multiple locations.
• Coverage Extensions: Endorsement CM 26 02 (Additionally Covered Property) can be used to purchase extensions of coverage, such as for office equipment temporarily off-premises, extra expense, personal effects, and books of account, often with separate sub-limits. Agents should discuss these options with clients to address potential coverage gaps.
• Valuation: Determining the correct valuation basis (e.g., actual cash value, replacement cost) is critical for ensuring adequate coverage and managing client expectations at the time of a claim.
• Related Forms: The CM 00 01 (Commercial Inland Marine Conditions) form generally applies and contains common conditions relevant to the coverage.