Temporary Premises And Off-Premises Losses
A number of issues must be considered in determining whether coverage exists for this off-premises loss. Under the CP form, coverage is available for property off premises if it is temporarily at a location the insured does not own, lease, or operate. An underwriting reason for this limitation is that leased property should be underwritten separately. When property has been off the premises for a while, and will continue to be for an indefinite duration, it seems unlikely that such property would be regarded as being ?temporarily? away from the premises. The amount of time that property can be off or planned to be off the premises and still be considered ?temporarily? away from the premises depends upon the facts. Relevant factors include the reason it is away and, perhaps, the type of business involved, and customs and practices. Any analysis should keep in mind that coverage provisions will be interpreted and applied in a manner that favors coverage. The CP form provides a limited amount of coverage for property that is off premises. However, before coverage can be provided under this provision, it must be determined whether the property is temporarily or permanently away from the premises, as the extension only will apply to property temporarily off the insured premises. In addition, the property cannot be at a premises owned, leased, or operated by the insured. There will be no coverage if the property is in or upon a vehicle, or in the custody of a salesperson, unless at a fair, trade show, or exhibition, under which circumstances this coverage can apply.