Which limitation applies to the Cause of Loss form in Commercial Property policies?

The Cause of Loss form within Commercial Property policies is designed to specify the types of risks and perils that the insurance will cover. When it comes to the theft of securities, the coverage is explicitly limited. This limitation stems from the high value and specific nature of securities, which can include stocks, bonds, and other financial instruments that are susceptible to specific forms of theft or fraud.

As a result, most standard commercial property policies do not provide coverage for the theft of securities under the Cause of Loss form. This restriction is in place because securities have unique considerations in terms of ownership transfer and the nature of loss, which are treated differently than tangible personal property.

Understanding this limitation allows policyholders and agents to clarify their coverage needs and consider additional endorsements or policies if they require protection for securities theft. This also highlights the importance of distinguishing between the various types of property and the specific coverage provisions that the insurer includes in the policy.