1. Forms
2. CP
3. CP-14-50

Form CP 14 50: Piers, Wharves And Docks

What the form is:

The CP 14 50, titled "Piers, Wharves And Docks," is an endorsement to a Commercial Property policy. Its primary purpose is to provide specific coverage for these types of structures, which are often excluded or have very limited coverage under a standard Commercial Property policy (CP 00 10). Standard policies often exclude items like bulkheads, pilings, piers, wharves, and docks because not all insureds have these exposures. This endorsement allows businesses with these structures to add them as covered property. It's important to note that this endorsement should typically be used if these structures have already been added as covered property to the policy, potentially through an endorsement like CP 14 10 (Additional Covered Property) or CP 14 15 (Additional Building Property). The CP 14 50 can then be used to further define or expand the covered causes of loss for these specific structures. For instance, it can add coverage for perils like floating ice and collision with a vessel or floating object.

Classes of business it applies to:

This endorsement is relevant for a variety of businesses that own or are responsible for insuring piers, wharves, docks, or similar waterfront structures. Real-world examples include:

• Marinas and Yacht Clubs: These businesses inherently rely on docks and piers for their operations, including boat mooring, fueling, and access.
• Restaurants and Retail Shops on the Water: Businesses with structures extending over or adjacent to water for customer access or aesthetic purposes.
• Port Authorities and Terminal Operators: Entities managing large-scale wharf and dock facilities for shipping and cargo handling. (Though, in some cases, Ocean Marine coverage might be more appropriate for very large or specialized marine structures).
• Manufacturing or Industrial Facilities with Waterfront Access: Companies that might have docks for loading/unloading materials or for water intake/discharge.
• Municipalities: Cities or towns that own public fishing piers, boardwalks, or ferry docks.
• Resorts and Hotels: Hospitality businesses with private docks or piers for guest recreation or boat access.

Special considerations:

• Prerequisite Endorsements: As mentioned, it's crucial to ensure that piers, wharves, and docks are first added as "covered property" on the policy, often via CP 14 10 or CP 14 15, before applying CP 14 50 to modify their coverage. The CP 14 10 allows an insured to specifically list property they wish to remove from the "property not covered" list.
• Valuation: The valuation method for these structures (Actual Cash Value vs. Replacement Cost) should be clearly defined. Specialized valuation might be needed due to the unique nature and construction of piers and docks.
• Covered Causes of Loss: The CP 14 50 can be used to broaden the perils covered for these structures. Standard property forms might exclude or limit coverage for losses common to waterfront structures (e.g., damage from ice, watercraft collision). This endorsement can specifically add back some of these perils.
• Exclusions: Be aware of specific exclusions that might still apply even with this endorsement. For example, an endorsement like CP 10 32 (Exclusion Of Loss Due To Collision Or Upset Of Watercraft) might be relevant and could exclude damage to docks caused by watercraft if not properly addressed. Flood damage is another critical consideration and typically requires separate flood insurance, as the flood endorsement often excludes coverage for bulkheads, pilings, piers, wharves, and docks.
• Maintenance and Condition: The age, construction type, condition, and maintenance of these structures are significant underwriting factors. Some insurers may have specific requirements, such as compliance with NFPA Standard 303 for fire safety at marinas.
• Debris Removal: The cost to remove debris of damaged piers and docks can be substantial and may require specific attention to limits.

Key information for agents and underwriters:

• Risk Assessment: A thorough inspection and risk assessment are vital. Key factors include:
  • Construction materials (wood, concrete, steel)
  • Age and condition of the structures, including pilings.
  • Exposure to weather perils (hurricanes, storm surge, ice)
  • Water depth and type of water body (saltwater vs. freshwater, calm vs. rough)
  • Occupancy and usage of the structures
  • Fire protection measures (e.g., fire extinguishers, standpipes).
  • Presence of electrical installations on docks and testing for stray currents.
  • For docks removed during winter, their storage location and method are important.
• Pricing: Pricing for this coverage will be influenced by the risk assessment, the limits of liability requested, the chosen causes of loss, and any applicable deductibles. Due to the specialized nature and higher risk profile of these structures, premiums can be significant.
• Coverage Gaps: Agents should carefully review the base Commercial Property policy and other endorsements to identify potential coverage gaps. For example, standard "property not covered" sections often list piers and wharves. Ensure the CP 14 10 or similar endorsement is in place to add these structures as covered property before considering the CP 14 50 for specific peril coverage. Also, consider if Inland Marine or Ocean Marine policies might be more suitable for certain exposures.
• Underwriting Guidelines: Underwriters will scrutinize applications for these risks. They will likely require detailed information, possibly including engineering reports, maintenance logs, and photographs. A history of past losses, especially those related to weather or marine perils, will be a key consideration. Some insurers may have specific supplemental applications for piers, wharves, and docks.
• Coinsurance: Ensure that the limits of insurance are adequate to meet coinsurance requirements, especially if Replacement Cost valuation is chosen. Underinsurance can lead to significant penalties at the time of a loss.
• Related Forms: The CP 14 10 (Additional Covered Property) and CP 14 15 (Additional Building Property) are key related forms, as they are often used to bring these types of structures onto the policy as covered property before the CP 14 50 modifies the terms of coverage for them.