What it does

CP 12 70 is meant to get claims paid quickly when a boiler and machinery (equipment breakdown) policy and the commercial property policy both apply. A typical case is an explosion or electrical breakdown that causes resulting fire damage. If the two insurers disagree about whether, or how much, each owes:

• Each insurer pays, at the insured's written request, the amount it agrees it owes plus one-half of the amount in disagreement.
• The insurers then resolve the dispute between themselves. Payments made under the agreement do not waive their rights against each other.

Key provisions

• It applies only if the boiler and machinery policy has a similar joint loss provision, the total amount of the loss is agreed among the insured and both insurers, and the insurers' positions fit the scenarios listed in the endorsement.
• It does not apply when neither insurer admits liability and neither contends the other policy applies.
• The amount paid in disagreement cannot exceed what the boiler policy's equivalent agreement provides, or what the property insurer would have paid without the boiler policy.

Quoting and selling notes

• If equipment breakdown is written by a different carrier, attach matching joint loss agreements to both policies.
• When equipment breakdown is added to the same property policy through an endorsement such as CP 10 46, a joint loss agreement is unnecessary.