What it does
OP 04 05 is the Spoilage Coverage endorsement for the Capital Assets Program, filed by ISO in multiple states with a 07 21 edition. A Connecticut version is OP 04 35.
Who needs it
Accounts with perishable stock: food processors and distributors, grocers, restaurants, pharmaceutical and laboratory operations.
Quoting and selling notes
Ask about refrigeration equipment, monitoring, backup power and values of perishable stock.
Before presenting it
Ask the carrier for the specimen and walk the insured through covered property, causes of loss, exclusions, valuation, deductibles and sublimits before relying on this summary.
How it fits
Capital Assets Program endorsements change only the provisions they name in OP 00 01; the rest of the coverage form and its declarations (OP DS 01, OP DS 02) continue to apply. When presenting a quote, list each OP endorsement with its schedule entries (locations, limits, deductibles) and compare the package with the equivalent commercial property (CP) forms if the insured is weighing both programs.
