What it does
IH 00 85 covers personal property of others in the insured's care, custody or control on an open-perils basis, whether or not the insured is legally liable for the loss. Coverage applies within the United States, its territories, Puerto Rico and Canada, including air shipments. ISO publishes this form in its IH series of commercial inland marine forms. IH forms are used within the Commercial Inland Marine Coverage Part, together with the Commercial Inland Marine Conditions (CM 00 01) and the Common Policy Conditions. The description follows the 12 13 specimen; the current filed edition is 12 20.
Who needs it
Dry cleaners, laundries, repair and service shops and other bailees who want to keep customers whole after a fire, theft or other loss even where they would not be legally liable. CGL policies exclude property in the insured's care, custody or control, and legal liability forms pay only when the bailee is at fault.
Key provisions
- Not covered: money and documents, animals, licensed vehicles, aircraft and watercraft, furs, jewelry and precious metals, property with other bailees unless at a described premises or with a carrier for hire, waterborne property, property accepted for storage unless a storage limit is shown and a storage certificate issued, mailed property, contraband.
- Additional coverages: misidentification of property from a covered cause, debris removal (25% plus up to $5,000), pollutant cleanup ($10,000 per year, in addition) and preservation of property (30 days).
- Exclusions: ordinance or law, theft from an unattended vehicle without forced entry, unexplained disappearance, inventory shortage, dishonest acts, pollution unless caused by specified causes, processing or work on the property, artificially generated current, mechanical breakdown and wear.
- Valuation: least of ACV, restoration or replacement, including the insured's labor and materials but not more than the amount on the customer's receipt. No deductible applies to property in transit.
- Adjustment by the insured: losses of $500 or less may be settled directly with customers and reimbursed within 30 days.
Quoting and selling notes
Rating is commonly based on receipts; ask for annual gross receipts, peak values on hand, storage practices (fur and seasonal storage needs separate limits), delivery vehicles and alarm protection. Damage from the cleaning or repair process itself is excluded, a common complaint from customers.
