1. Forms
2. CM
3. CM-DS-02

What the form is

The CM DS 02 is the Commercial Inland Marine Declarations form. It is a critical component of a Commercial Inland Marine insurance policy, serving as a summary page that personalizes the coverage for the insured. This form outlines the specific agreements between the insurance company and the named insured. Key information detailed on the CM DS 02 typically includes:

• The Named Insured and their address
• The policy number and policy period (effective and expiration dates)
• A description of the business operations
• A schedule or description of the covered property
• Limits of Insurance for various coverages or property items
• Applicable deductibles
• Coinsurance percentages, if any
• A list of forms and endorsements that, together with the declarations, make up the entire policy.

Essentially, the CM DS 02 provides a snapshot of the specific terms and conditions of the Commercial Inland Marine coverage being provided.

Classes of business it applies to

The CM DS 02 is utilized across a wide array of industries and businesses that have exposures covered under a Commercial Inland Marine policy. This type of insurance is designed for property that is mobile, in transit, held by a bailee, or is an instrumentality of transportation or communication. Real-world examples include:

• Physicians and Surgeons Equipment: Covering medical, surgical, and dental equipment, instruments, furniture, and tenant improvements for medical professionals.
• Equipment Dealers: Insuring the stock of mobile agricultural and construction equipment, as well as similar property of others in the dealer's care, custody, or control.
• Businesses Utilizing Processors: Protecting the named insured's property while it is located at an offsite processor or in transit to or from such a processor.
• Owners of Machinery and Equipment: Covering owned or non-owned mobile or portable equipment such as ATMs, vending machines, robotics, or specialized tools.
• Motor Truck Cargo Owners: Insuring goods and merchandise that the named insured transports on their own vehicles.
• Electronic Data Processing Equipment: Covering computers, software, and other electronic data processing equipment.
• Contractors Equipment
• Musical Instruments
• Cameras and Photographic Equipment
• Fine Arts

Special considerations

• Accuracy is Paramount: The information on the declarations page dictates the scope of coverage. Any inaccuracies in describing property, listing limits, or identifying the named insured can lead to significant coverage disputes or gaps when a loss occurs.
• Integral Part of the Policy: The CM DS 02 does not provide coverage in isolation. It must be read in conjunction with the applicable Commercial Inland Marine coverage form(s), the Commercial Inland Marine Conditions (e.g., CM 00 01), Common Policy Conditions (e.g., IL 00 17), and any attached endorsements.
• Endorsement Listing: This form will list all endorsements that modify the policy. It is crucial for both the insured and the agent to review these endorsements to understand how they alter the standard coverage.
• Monoline or Package: Commercial Inland Marine coverage, and therefore the CM DS 02, can be issued as a standalone (monoline) policy or as part of a Commercial Package Policy (CPP).

Key information for agents and underwriters

• Underwriting Foundation: The CM DS 02 provides essential data for underwriters to assess the risk, including the nature and value of the property, its usage, and storage locations.
• Premium Calculation: The limits of insurance, deductibles, property values, and other specifics detailed on the declarations are key factors in calculating the policy premium.
• Needs Assessment: Agents must work closely with clients to ensure the declarations accurately reflect the insured's property and coverage needs. This includes selecting appropriate limits and ensuring all relevant property is scheduled or covered under a blanket limit.
• Coinsurance Implications: If a coinsurance clause applies (as indicated on the declarations), agents and underwriters need to ensure the insured understands this provision and that the property is insured to the required percentage of its value to avoid a coinsurance penalty at the time of loss.
• Clarity of Property Description: Underwriters should insist on clear and specific descriptions of covered property on the declarations to prevent ambiguity and potential claim disputes. For example, simply stating "equipment" might be too vague; a more precise description like "contractor's hand tools and small equipment" or scheduling specific high-value items is preferable.
• Scheduled vs. Blanket Coverage: The declarations will specify whether property is covered on a scheduled basis (individual items listed with specific limits) or on a blanket basis (a single limit applying to a category of property). This choice impacts underwriting, rating, and claim settlement.