A nonstandard commercial property insurance provision stating that the most
the insured can collect for a loss at a given location is a specified percentage
of the values reported for that location on the insured's statement of values.
The maximum is normally stated as a percentage that is greater than 100 percent,
such as 110 or 125 percent. A margin clause may be used alone or along with
another nonstandard commercial property insurance provision: a per occurrence
limitation of liability provision. A per location limitation of liability provision
is even more restrictive than a margin clause. It establishes that the most
the insured can collect for a commercial property loss at a given location is
the amount reported for that location on the insured's statement of values.
When the two provisions are used together, the margin clause increases the amount
that the insured could otherwise collect. Both provisions are typically attached
to policies with blanket limits, so that they essentially convert blanket limits
to specific, per location limits.
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