Causes of Loss - Broad Form
An ISO causes of loss form covering Basic Form perils plus additional named perils including falling objects, water damage, and weight of ice.
What It Is
The Causes of Loss - Broad Form (CP 10 20) provides all the coverage of the Basic Form plus additional named perils: falling objects, weight of snow/ice/sleet, water damage (from plumbing, heating, AC, fire protection systems, and appliances), and collapse from specified causes. It is the middle option among the three standard ISO causes of loss forms.
The Broad Form significantly expands coverage beyond the Basic Form but remains a named-peril form—the insured must prove the loss was caused by one of the specifically listed perils. It does not cover losses from perils not listed, such as earth movement (unless caused by a listed peril), flood, mysterious disappearance, or employee theft.
The Broad Form's water damage coverage is particularly valuable, as burst pipes, HVAC condensation, and sprinkler malfunctions are common commercial property losses. However, the water damage coverage has important limitations—it typically does not cover flood, surface water, or water that enters through the building envelope due to poor maintenance.
Why It Matters for Brokers
The Broad Form is a reasonable middle ground for clients who need more than Basic Form coverage but cannot obtain or afford the Special Form. Brokers should understand exactly which additional perils the Broad Form adds and communicate the remaining exclusions clearly. Many brokers default to recommending the Special Form, but understanding the Broad Form is essential for accounts with underwriting challenges.
Real-World Example
A retail store insured on the Broad Form experiences $67,000 in damage when a heavy ice storm causes the roof to partially collapse under the weight of ice and snow. The Broad Form specifically covers weight of snow, ice, or sleet, so the claim is paid. Under the Basic Form, this loss would have been denied because weight of snow/ice/sleet is not a covered Basic Form peril. The annual premium for Broad Form was $4,200 versus $3,600 for Basic—a $600 difference that saved the client $67,000.
Common Mistakes
- 1Assuming the Broad Form covers all water damage—it covers specific water damage sources but not flood, surface water, or water entering through the building envelope.
- 2Not recognizing that the Broad Form is still a named-peril form where the burden of proof is on the insured, unlike the Special Form where the burden shifts to the insurer.
- 3Confusing the Broad Form's collapse coverage (limited to specific causes) with comprehensive collapse coverage available under the Special Form.
How brokerageaudit.com Handles This
brokerageaudit.com's Policy Checker identifies the causes of loss form attached to each commercial property policy and displays a coverage comparison showing what is and is not covered. The system highlights the specific perils added by the Broad Form over the Basic Form and the gaps that remain compared to the Special Form, enabling brokers to have informed conversations with clients.