What it does
For the locations in its Schedule, CP 10 56 adds Sprinkler Leakage to the exclusions. Sprinkler leakage means leakage or discharge of any substance from an Automatic Sprinkler System, including collapse of a tank that is part of the system. To make the exclusion work across the Causes of Loss forms, it also:
- Narrows the Water exclusion exception so that only fire or explosion resulting from water is covered.
- Rewrites the Basic form exclusions on pipe bursting and leakage from systems or appliances.
- Removes leakage from fire-extinguishing equipment from Broad form collapse.
- Rewrites the Special form freezing exclusion and the limitation on repairing systems from which water escapes.
Who sees it
Buildings with sprinklers where heat cannot be maintained (vacant, seasonal or unheated structures), and accounts where sprinkler leakage is placed elsewhere or is self-insured. It may also be used when the underwriter has concerns about the system's condition.
Quoting and selling notes
- Sprinkler discharge from freezing is a frequent and severe loss in vacant buildings. Make sure the client understands the gap.
- Consider maintaining heat, draining dry systems or adding low-temperature alarms as alternatives.
- Do not confuse it with Protective Safeguards (CP 04 11), which makes maintaining sprinklers a condition of fire coverage.
