CP 10 10: Causes of Loss Basic Form Explained

CP 10 10 is the Causes of Loss Basic Form in the commercial property program. It uses a named-peril approach: covered property must suffer direct physical loss or damage caused by a peril the form lists, unless an exclusion or limitation removes coverage. The form identifies causes of loss. A coverage form such as CP 00 10 separately identifies the property, limits, and extensions.

Which causes of loss does CP 10 10 name?

The standard 10 12 form lists fire, lightning, explosion, windstorm or hail, smoke, aircraft or vehicles, riot or civil commotion, vandalism, sprinkler leakage, sinkhole collapse, and volcanic action.

Each peril has a definition or limitation. For example, vandalism does not simply create general theft coverage, and interior rain damage generally requires the wind or hail to first create an opening under the form's conditions. Read the exact cause and exclusions rather than relying on the eleven-item summary.

The linked public policy contains the complete six-page CP 10 10 10 12 form; this explanation concerns that edition, not that policyholder's specific coverage.^[1] A current insurer training guide shows how a commercial property policy starts with a property coverage form and adds Basic, Broad, or Special causes of loss.^[2]

How does Basic differ from Broad and Special?

CP 10 30, the Special Form, generally covers direct physical loss unless excluded. CP 10 20, the Broad Form, remains named-peril but adds causes such as falling objects, weight of snow, ice or sleet, and certain water damage, plus a collapse additional coverage.

Basic Form does not ordinarily cover theft, accidental discharge from plumbing, or falling objects simply because those events damage insured property. Endorsements and state or carrier modifications can change the result.

What should a business compare?

Start with the property schedule under CP 00 10 or another attached coverage form. Then identify the cause-of-loss form, deductible, valuation, coinsurance, protective safeguards, vacancy terms, and endorsements. Map the building's real exposures, including theft, roof loads, plumbing leaks, equipment breakdown, flood, earthquake, and ordinance or law.

A lower premium is not a savings if the retained causes of loss are financially unacceptable. Ask for side-by-side Basic, Broad, and Special quotes with material exclusions highlighted.

This guide is for educational purposes and summarizes standard ISO policy concepts in original language. Form numbers and titles are used only for identification. Menlo Insurance Services is not affiliated with or approved by Insurance Services Office, Inc. Your policy, declarations, and attached forms control. Talk to a licensed broker about your property.