1. Forms
2. IH
3. IH-00-94

What the form is

The IH 00 94 Machinery and Equipment Coverage Form is an Insurance Services Office (ISO) form designed to provide inland marine coverage for mobile or portable machinery and equipment. This form applies to specifically described and identified property, whether owned or non-owned by the insured. It is a crucial part of a commercial inland marine policy when covering these types of assets. The policy construction typically requires several forms to be complete, including Common Policy Declarations (IL DS 00), Common Policy Conditions (IL 00 17), Commercial Inland Marine Declarations (CM DS 02), Commercial Inland Marine Conditions (CM 00 01), and the Machinery and Equipment Declarations (IH DS 94) alongside the IH 00 94 itself.

Classes of business it applies to

This coverage form is versatile and can be used for a wide range of businesses that own, lease, or are responsible for mobile or portable machinery and equipment. Examples include:

• Contractors (e.g., welding equipment, portable generators)
• Businesses with vending machines or ATMs
• Entertainment businesses (e.g., jukeboxes, portable sound systems)
• Municipalities or organizations using voting machines
• Manufacturing or industrial businesses with robotics or specialized mobile equipment
• Any business that has valuable mobile equipment that is frequently moved between locations.

Special considerations

Several special considerations apply to the IH 00 94 form:

• Scheduled vs. Blanket Coverage: The form can be used for property covered on a scheduled basis (each item listed with a specific limit), a blanket basis (a single limit for a category of items), or a combination.
• Theft from Unattended Vehicle Exclusion: The form includes an exclusion for theft from an unattended vehicle, which can be deleted by checking a box on the declarations, likely for an additional premium.
• Coinsurance: A coinsurance percentage can be specified in the declarations, which applies to scheduled items. If the value of covered property at the time of loss, multiplied by the coinsurance percentage, is more than the limit of insurance, the company may not pay the full amount of the loss.
• Coverage Territory: The standard coverage territory is the United States of America, its territories and possessions, Puerto Rico, and Canada. This includes property shipped by air within and between these points.
• Newly Acquired Property: There is typically a provision for newly acquired property, requiring the insured to report it within a specific timeframe (e.g., 30 days) and pay the additional premium.
• Pollutant Cleanup: The form may provide a limited amount of coverage (e.g., $10,000 per premises as an aggregate) for cleaning up pollutants caused by a covered cause of loss, provided the expenses are reported in writing within 180 days.

Key information for agents and underwriters

Agents and underwriters should pay close attention to the following when dealing with the IH 00 94:

• Accurate Scheduling and Valuation: For scheduled property, ensure accurate descriptions and current valuations to avoid underinsurance and coinsurance penalties. For blanket coverage, clearly define the property covered.
• Mobility and Transit Exposures: Since the form covers mobile property, underwriting must consider the risks associated with transit between locations, as well as exposures at the named insured's premises and at job sites or other locations where the equipment is used.
• Concentration of Values: It's important to establish the highest potential value of equipment that could be at any single location, especially the named insured's premises where storage and maintenance occur.
• Moral Hazard: The nature of mobile equipment can sometimes present a higher moral hazard. Underwriters should assess the insured's loss history and operational controls.
• Endorsements: Various endorsements can modify the IH 00 94. For example, IH 99 07 can add Replacement Cost coverage (as the base form is often Actual Cash Value), and IH 99 29 can add Limited Coverage for Unmanned Aircraft Property. Agents should discuss these options with clients based on their specific needs.
• Deductibles: Separate deductibles can apply to scheduled property and blanket property. If a loss involves both, typically only the higher of the two deductibles will apply.