One sure way to cost your commercial property insureds thousands of dollars in out-of-pocket expenses is to depend on the unendorsed commercial property policy (CPP) to cover the cost of all expenses following a major property loss. Few commercial structures fully meet local building code requirements; and the older the building, the further out of compliance the building is. Non-compliance with local building codes can cost your insureds many thousands of dollars following a major property loss. In fact, the out-of-pocket expense resulting from such non-compliance could reach and exceed seven digits depending on the insured.

Why is non-compliance with local building codes such an expensive problem for your commercial insureds? Because the CPP’s definition of replacement cost does not match the reality of the loss and the expenses incurred.

Essentially, local building codes hold the potential to turn a partial real property loss into a total loss. Following a “major” loss building code official can require the undamaged portion of the structure to be demolished and removed from the site, and the new building to be built in compliance with all local building codes. The unendorsed CPP only pays the cost to remove and rebuild the damaged portion of the building. There is NO coverage for any of the other expenses related to the undamaged part.

Enter Ordinance or Law coverage. After Business Income, this may be the MOST important property coverage your insured can purchase. This class details the essential coverage provisions found in the two ordinance or law endorsements and demonstrates how this coverage can save your insureds (and you from an E&O perspective) hundreds of thousands of dollars in out-of-pocket expenses.

Participants in this webinar will learn:

• The coverage gaps in all property policies making Ordinance or Law Endorsements necessary
• Who promulgates and who enforces local building codes
• What constitutes “major” damage (necessitating the demolition and reconstruction of the entire structure)
• The details of each of the two available commercial property ordinance or law endorsements
• How to develop the limits of coverage for each of the coverage parts