1. Forms
2. CM
3. CM-DS-01

Commercial Inland Marine Declarations Page (CM DS 01)

1. What the Form Is

The Commercial Inland Marine Declarations Page (CM DS 01) is a crucial component of a Commercial Inland Marine insurance policy. Its primary purpose is to summarize key information specific to the insurance agreement between the insurer and the named insured. This form "declares" the essential details that define the scope of coverage, tailoring the broader policy language of attached coverage forms to the specific risk being insured. It typically includes:

• The Named Insured's name and address.
• The policy number and policy period (effective and expiration dates).
• Information about the insurance company and the producer (agent/broker).
• A listing of all forms and endorsements that, together with the declarations, make up the entire contract.
• The premium for the coverage part(s).
• Limits of Insurance for various coverages provided.
• Applicable deductibles.
• A description of the business operations or property insured.
• Sometimes, specific rates or rating bases.

Essentially, the CM DS 01 acts as the cover sheet and a quick reference guide to the specifics of the inland marine coverage provided, personalizing the policy to the individual insured's needs. Because inland marine insurance can cover a wide and diverse range of property and exposures, the declarations page is vital for clearly outlining what is specifically covered under the policy. Multiple declarations pages may even be used within a single policy, especially if various distinct inland marine coverages are provided.

2. Classes of Business It Applies To

The CM DS 01 is a general declarations page, meaning it's designed for use with a variety of Commercial Inland Marine coverage forms. Therefore, it can apply to a vast array of industries and business types that have exposures related to property that is mobile, in transit, held by bailees, or is an instrumentality of transportation or communication. Real-world examples include:

• Contractors: For their tools and equipment (Contractor's Equipment Floater), or materials being installed at a job site (Installation Floater). For instance, a construction company would use this to declare their scheduled bulldozers, cranes, and hand tools, along with their respective values and applicable deductibles.
• Transportation and Logistics Companies: For cargo they are transporting (Motor Truck Cargo coverage). A trucking company would declare the types of goods they haul and the limits per vehicle or per occurrence.
• Businesses with Valuable Papers and Records: Such as architects, lawyers, or accountants, to cover the cost of reproducing documents lost or damaged. An accounting firm might declare the location of their records and the limit of insurance for their reconstruction.
• Dealers: Including equipment dealers (e.g., agricultural or construction equipment), camera and musical instrument dealers, or jewelers (Jewelers Block). An equipment dealer would declare their inventory, property at various locations, and property in transit.
• Businesses with Mobile Equipment: Such as companies using mobile medical equipment, DJ equipment, or specialized scientific apparatus. A mobile DJ service would list their sound and lighting equipment on the declarations.
• Exhibitors: For property on display at trade shows or exhibitions. A company participating in a trade show would declare the value of their display items and the period of the exhibition.
• Bailees: Businesses that have temporary custody of customers' property, like repair shops or storage facilities (Bailee's Customer Coverage). A computer repair shop would declare the limit of liability for customers' electronics in their care.
• Communication and Transportation Infrastructure: Such as bridges, tunnels, pipelines, and radio/television towers.
• Fine Arts Dealers and Collectors: For valuable artwork. A gallery would declare scheduled art pieces and their agreed values.
• Mail Coverage: For financial institutions or businesses sending valuable property or securities through the mail. A bank would declare the types of mail (e.g., first class, registered) and the limits for shipments.

3. Special Considerations

Several important points should be considered when using the CM DS 01:

• Attachment to Coverage Forms: The CM DS 01 is not a standalone coverage document. It must be attached to one or more specific Commercial Inland Marine coverage forms to provide actual insurance. The declarations page customizes the terms of those attached forms.
• Accuracy is Paramount: All information on the declarations page, such as insured values, limits, property descriptions, and locations, must be accurate and current. Incorrect information can lead to coverage disputes or inadequate claim payments. For example, if a contractor undervalues their equipment on the declarations to save premium, they may face a significant financial shortfall if that equipment is destroyed.
• Scheduling of Property: For many inland marine coverages, specific items of high value (like particular pieces of contracting equipment or fine art) must be individually listed or "scheduled" on the declarations page with an agreed value or specific limit. Failure to properly schedule an item might mean it is subject to a lower, unscheduled property limit or may not be covered adequately.
• Reporting vs. Non-Reporting Forms: Some inland marine coverages are written on a reporting basis (e.g., for fluctuating inventory values like a floor plan merchandise dealer). The declarations page will specify if the form is reporting and outline the reporting period and requirements. Missing a required report can jeopardize coverage.
• Valuation: The declarations page, in conjunction with the coverage form, will indicate how property will be valued at the time of loss (e.g., Actual Cash Value, Replacement Cost, or Agreed Value). This is a critical detail for insureds to understand. For example, Fine Arts are often covered on an "Agreed Value" basis, which should be clearly stated.
• State-Specific Requirements: While the CM DS 01 is for use in all states, state regulations can influence what information must be included or how certain terms are interpreted. For example, some states may have specific rules about disclosing information on the declarations if a specimen policy is posted online by the insurer.
• Package Policies: If Commercial Inland Marine coverage is part of a Commercial Package Policy (CPP), the CM DS 01 will be one of several declarations pages in the overall policy.

4. Key Information for Agents and Underwriters

Agents and underwriters should pay close attention to the following when working with the CM DS 01:

• Risk Assessment: The details on the declarations (e.g., type of property, values, locations, transit exposures, security measures for valuable papers or accounts receivable records) are fundamental for assessing the risk. For accounts receivable coverage, the description of storage containers for records on the declarations can be a key underwriting factor.
• Pricing and Rating: Information such as limits of insurance, deductibles, property values, and sometimes specific rating classifications or territories shown on the declarations directly impacts the premium calculation. Some endorsements may state that rates used are tentative and subject to adjustment, which would be noted.
• Coverage Gaps and Endorsements: Reviewing the declarations helps identify potential coverage gaps. For instance, if a client has significant off-premises exposure but the declarations only show limits for property at a described premises, an agent should discuss broadening coverage. Endorsements that modify coverage often have their limits or specifics detailed on the declarations.
• Underwriting Guidelines: Insurers have specific underwriting guidelines related to the types of property, maximum limits, required deductibles, and security precautions they are willing to accept. The declarations must reflect adherence to these guidelines. For example, an underwriter might require higher deductibles for certain types of mobile equipment prone to theft.
• Clarity of Insured Property: Especially for scheduled items, the description on the declarations must be precise to avoid ambiguity during a claim. Vague descriptions like "various tools" are less desirable than specific listings with serial numbers where practical.
• Coinsurance and Insurance to Value: While not always directly on the CM DS 01 itself, the values declared are critical in relation to any coinsurance clauses or "insurance to value" requirements present in the attached coverage forms. Underinsuring property on the declarations can lead to penalties at the time of loss.
• Named Insureds: Ensuring the correct legal entity is listed as the Named Insured is vital. For businesses with multiple entities or DBAs, this needs careful attention on the declarations.
• Policy Structure: Understanding how the CM DS 01 interacts with the Common Policy Conditions, the specific Inland Marine coverage form(s), and any endorsements is key to correctly interpreting the overall coverage.