Commercial Policy

Commercial Policies are available for:

  • Buildings with five or more habitational units (e.g. apartment buildings, hotels, motels)
  • Retail mercantile
  • Manufacturing risks
  • Office buildings
  • Residential or commercial buildings under Course of Construction (COC)

The descriptions below are intended as an overview only. Please read the applicable forms and endorsements for complete terms, including definitions, conditions and exclusions. Click here to see a sample Commercial Policy.

Covered Causes of Loss

The FAIR Plan Commercial Policy is a named peril policy, which provides coverage only for damage caused by the specific causes of loss listed in the policy.


  • Fire
  • Lightning
  • Explosion

Optional (for an additional premium)

  • Extended Coverage (windstorm or hail, smoke, aircraft or vehicles, riot or civil commotion, sinkhole collapse, volcanic action)
  • Vandalism
  • Sprinkler Leakage for qualifying buildings IL 0014


Unless Replacement Cost is selected, the policy is an Actual Cash Value policy.


Includes coverage for the building and any outdoor fixtures, machinery, and equipment attached to the building.

Business Personal Property

Covers business personal property (as defined in the policy) in or on the building or in the open within 100 feet of the described premises.

Personal Property of Others

Covers personal property of others in the care, custody, and control of the insured located in or on the building or in the open within 100 feet of the described premises.

Replacement Cost

Pays to reconstruct or replace the part of the building damaged without deduction for depreciation up to the policy’s limit of liability for building coverage. Replacement Cost coverage is not available for business personal property or personal property of others. Refer to Replacement Cost addendum form (CFP-RCAC-2) to determine if the property meets underwriting guidelines. This form must be included with any request for replacement cost coverage for any commercial buildings constructed more than 50 years ago. CP 100

Course of Construction (COC)

Covers either residential or commercial structures in construction from the ground up, or existing structures undergoing extensive reconstruction or renovations. Coverage is limited to the basic perils offered by the FAIR Plan at the premises where the construction/reconstruction work is being performed. Various underwriting guidelines relative to policy warranties may apply to this coverage as well as minimum mandatory deductibles, depending on the amount of coverage requested.

Debris Removal

Provides up to 25% of the amount paid for direct physical loss or damage to covered property.

Preservation of Property

If it is necessary to move covered property from the described premises to preserve it from loss or damage from a covered cause of loss, we will pay for loss to that property while it is being moved or temporarily stored elsewhere, but only if the loss or damage occurs within 10 days after the property is first moved.

Fire Department Service Charge

Provides up to $1,000 for fire department service charges contracted prior to loss or required by local ordinance.

Pollutant Clean Up and Removal

Provides up to $10,000 for expenses to extract pollutants from land or water at the described premises if the discharge, seepage, migration, release or escape is caused by a covered peril, but only if the expenses are reported to us in writing within 180 days after the covered cause of loss occurs.

Business Income and Extra Expense

Coverage for the actual loss of business income sustained due to necessary suspension of operations during the period of repair/restoration. The suspension must be caused by covered loss or damage to property at the described premises. We also pay extra expenses incurred during the period of restoration to avoid or minimize the suspension of business and to continue operations. Coverage is provided on an actual loss sustained basis and the maximum monthly claim payment is 25% of the total amount of insurance that is requested. There is no coverage for vacant or unoccupied properties except as defined in the endorsement. Refer to the endorsement for a full description of definitions and coverages. CP 0030

Sprinkler Leakage

Available for any amount of coverage for qualifying buildings. IL 0014


Every policy has a deductible to be applied once per covered loss. Deductibles available are: $250; $500; $1,000; $2,500; $5,000; $7,500 (Course of Construction only); $10,000; $25,000; $50,000; and $75,000. The higher the deductible, the lower the premium will be.