What Is COPE Information & What Is COPE Information Used For?
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Every industry has it’s fair share of acronyms, abbreviations and short forms. The insurance industry is no exception and insurance professionals are specifically trained to learn the meaning of certain terms and use them regularly them communicating with other insurance professionals as a form of short form. Unfortunately, many insurance professionals fall into this habit and continue to use acronyms like, COPE Information, when they are communicating with clients who rightfully have no idea what they are referring to or mean. The commercial insurance brokers at the Canadian insurance brokerage ALIGNED do their best to explain things like what is COPE information & what is COPE information used for? to their customers and other without using jargon as helping others better understand insurance is part of the value our business insurance brokers bring.
So…What Is COPE Information?
COPE is a term that is used for commercial property insurance to explain the aspects of a building that are key to determining commercial property insurance rates. COPE stands for the following:
- Construction – The C stands for construction and specifically is referring to the materials used to construct the building. More specifically is the frame of the building built with wood or steel and is the exterior of the building made of bricks, stucco, cinder block, siding etc.
- Occupancy – this refers to what is the building use for because a commercial building that manufacturers plastics or wood products is a very different risk profile than a commercial building used of warehousing metal parts.
- Protection – What is protecting the building from common insurance perils like fire, flood, theft etc. This includes having a functioning sprinkler system, third party monitored alarms etc.
- Exposure – are there any buildings or hazards that could potentially cause damage to the insured building.
What Is COPE Information Used For?
Once COPE information is gathered, what is COPE information used for? COPE information is used by underwriters to evaluate the riskiness of a building being damaged by events that are covered by insurance. More specifically a building with a wood frame, that is used as cabinet manufacturer that doesn’t have a sprinkler system and is next door to 3 vacant wood frame abandoned warehouses is a different risk than a steel frame, brick exterior, warehouse with full sprinkler, water and intrusion detection. Both locations will have very different rates and ultimately very different premiums if both buildings had the same replacement cost.
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