Issue #3036
Margin Clauses Making Agreed Value Options Extinct!

Margin Clauses Making Agreed Value Options Extinct!

As disasters and their ramifications have dominated property insurance headlines in recent years, a less-publicized development has been the gradual implementation of the “margin clause” on commercial property insurance policies.

Essentially, the margin clause nullifies the benefits of purchasing blanket coverage written on an agreed amount basis. Many have seen it as a move by insurers to reduce or restrict coverage—and do so quietly.