PPA's New (May 2021) Basic Inland Marine Coverage vs. Allstate Inland Marine
Members of PPA are asking me to review the new (May 2021) PPA Basic Policy. Here is my analysis:
PPA's new basic policy is Replacement Cost (RC) claims settlement. Prior to May 2021 it was Actual Cash Value (ACV) claim settlement. Allstate's Inland Marine is an Actual Cash Value (ACV) claims settlement. So, PPA has improved its coverage over the prior PPA policy. When a RC claim is settled there is a two step process. First, they calculate the ACV and make a payment on a covered loss. Second, they make up the difference between the first payment and the amount you paid (receipt required) to replace the item purchase - less your $350 deductible.
Regarding exclusions. PPA's Commercial Inland Marine policy says:
2. "We" do not pay for loss or damage that is caused by or results from one or more of the following:
j. Missing Property – “We” do not pay for missing property where the only proof of loss is unexplained, or mysterious disappearance of covered property, or shortage of property discovered on taking inventory, or any other instance where there is no physical evidence to show what happened to the covered property.
Comment - Allstate's Commercial Inland Marine Policy has no such exclusionary language. In fact, my experience is that mysterious disappearance is treated as theft by Allstate claims department. Allstate does investigate the insured "losing" property. So, if you state that you lost your camera bag, for instance, they may not pay a claim; however, if your camera bag was there (in an airport say), and then it was gone, they would consider this a theft and cover the loss. PPA's policy states that it will not cover "mysterious disappearance.
l. Temperature And Humidity – “We” do not pay for loss to covered property caused by: i. Dryness, dampness, humidity; or ii. Changes or extremes in temperature.
Comment - There is no such exclusion in the Allstate Commercial Inland Marine Policy.
m. Theft From An Unattended Vehicle – “We” do not pay for theft from an unattended vehicle except when it is securely locked, its windows are fully closed, and there is visible evidence that entry into the vehicle was forced.
Comment - Allstate's Commercial Inland Marine Policy has no such exclusionary language. In fact, this language does exist in almost all Business Owners Policies (BOP), so it is critical to have an Inland Marine policy which does not contain this exclusion.
Regarding the covered property, the PPA policy says, "We cover the following property belonging to “covered members”". There is not a "care, custody and control" clause in the PPA's policy. Any equipment that you don't own but is in your "care, custody, and control" means you are NOT covered by the PPA policy. Equipment is your "care, custody, and control" is covered by the Allstate Commercial Inland Marine policy. Examples, of equipment in your "care, custody, and control" includes rented equipment, borrowed equipment, "ambassador" equipment, etc.
Reminder - these remarks are general in nature and do not constitute insurance coverage. Each loss is evaluated on its merits and conditions and coverage is afforded specifically from the insurance policy in force at the time of loss. These remarks and no guarantee of coverage. Please see your specific policy for the details of your coverage and exclusion and limitations.