On loss of earnings and extra expense coverages PACE will include payment for actual loss sustained, eliminating the maximum limit requirement. PACE premium base rates have been reduced nationwide on targeted office and retail classes of business. Agent automation enhancements also have been added. The American Association of Insurance Services filed an endorsement to the homeowners, mobilehomeowners and farm policies which provides coverage for home-based businesses. The nationwide filing is effective February 1, 1996.
Coverage is included for costs to research and restore valuable papers.
There also is optional property coverage for accounts receivable, loss of income, spoilage and related private structures used in the business. The coverage part includes incidental liability coverages for fire legal liability, claims and defense cost, contractual liability and vehicles. Optional coverages include personal and advertising injury, expanded contractual liability and non-owned and hired auto liability. The rating procedures for the endorsement are designed to be familiar to personal lines sales and underwriting staff who will be marketing the coverage. In place of commercial rating that depends on variables such as receipts and floor area, the coverage option uses a series of flat loss costs for each of the five occupational classes.