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commercial output policy (COP)

A broad all risks policy that provides a combination of commercial property and commercial inland marine coverages many businesses need. The COP is the successor to the manufacturers output policy (MOP), which was originally developed in the mid-1950s to insure in a single policy stock during the manufacturing process as well as in transit. The American Association of Insurance Services (AAIS) offers standard COP forms and rules for use by its member insurers. In addition, many insurers have developed their own COP forms and rules. COP premiums are typically developed using a distinctive rating system (referred to as a "deficiency point rating system") that allows many insurers to be more competitive using a COP than they could be using a standard commercial property policy.


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