Commercial Property Policy Sprinkler Coverage
Commercial property policy sprinkler coverage pays for leakage or discharge from an automatic sprinkler system, including tank collapse. Causes of loss forms provide it automatically unless CP 10 56 excludes it. When the building is Covered Property, the form also pays to repair damaged sprinkler parts and tear out walls or ceilings to reach the system.
Last updated: September 14, 2026
Commercial property policy sprinkler coverage
| Claim | Listed | URL |
|---|---|---|
| Sprinkler leakage covers leakage/discharge including tank collapse; automatic on COL; excludable CP 10 56 | Sprinkler leakage insurance, well described by its title, covers loss resulting from direct damage to insured property caused by leakage or discharge of any substance from an automatic sprinkler system, including collapse of a tank that is part of the system. Coverage is provided automatically on the causes of loss forms, but it can be excluded by use of an endorsement, CP 10 56 06 07 , Sprinkler Leakage Exclusion. | PC360: Sprinkler Leakage Insurance |
| Automatic sprinkler system components (heads, pipes, valves, tanks, pumps, mains) | The system includes sprinkler heads and discharge nozzles, ducts, pipes, valves, fittings, tanks (including component parts and supports), pumps, private fire protection mains, connected with and forming part of the system. | PC360: Automatic Sprinkler System |
| Repair/replace damaged system parts; tear out wall/ceiling to reach system | Additionally, the cost to repair or replace damaged parts of the system is covered if the damage results in sprinkler leakage or is directly caused by freezing. The insurance also applies to the tearing out and replacing of any part of the building or structure to repair damage to the system. So if it is necessary to tear down a wall or ceiling in order to repair a part of the sprinkler system, the property form will cover not only the repair of the system that caused the leakage damage but also the wall and area that is torn out in order to reach the sprinkler system. | PC360: Building coverage / tear-out |
| Vacancy >60 consecutive days: no sprinkler leakage pay unless freeze-protected | If the building where loss or damage occurs has been vacant for more than sixty consecutive days before that loss, the insurer will not pay for any loss or damage caused by sprinkler leakage unless the named insured has protected the system against freezing. | PC360: Vacancy clause |
| ISO-form Sprinkler Leakage definition + tank collapse (Conifer forms PDF) | Sprinkler Leakage, meaning leakage or discharge of any substance from an Automatic Sprinkler System, including collapse of a tank that is part of the system. | Conifer: Michigan Hospitality Property Forms (PDF) |
| Tear-out / repair when building containing Automatic Sprinkler System is Covered Property | If the building or structure containing the Automatic Sprinkler System is Covered Property, we will also pay the cost to: a. Repair or replace damaged parts of the Automatic Sprinkler System if the damage: (1) Results in sprinkler leakage; or (2) Is directly caused by freezing. b. Tear out and replace any part of the building or structure to repair damage to the Automatic Sprinkler System that has resulted in sprinkler leakage. | Conifer: repair + tear-out |
| Automatic Sprinkler System means sprinklers/nozzles; ducts/pipes/valves/fittings | Automatic Sprinkler System means: (1) Any automatic fire-protective or extinguishing system, including connected: (a) Sprinklers and discharge nozzles; (b) Ducts, pipes, valves and fittings; (c) Tanks, their component parts and supports; and (d) Pumps and private fire protection mains. | Conifer: Automatic Sprinkler System means |
| CP 10 56 Sprinkler Leakage Exclusion (optional endorsement, not default) | Sprinkler Leakage, CP 10 56 06 07 An insurance company or an insured may desire to exclude certain property, identified in the declarations, from coverage for sprinkler leakage. Endorsement CP 10 56 may be used with the basic, broad, and special causes of loss forms. | PC360: Commercial Property Endorsements (CP 10 56) |
| Protective Safeguards CP 04 11 duties; 48 hours to restore automatic sprinklers | Protective Safeguards, CP 04 11 10 12 … This endorsement identifies what fire protection safeguards exist on the insured's property and clarifies the insured's duties with respect to the maintenance of such systems—for example, keeping the systems in operation and notifying the insurance company if they are not working properly. … Insureds with automatic sprinklers have forty-eight hours to restore a nonfunctioning systems before they must notify the insurer. | PC360: Protective Safeguards CP 04 11 |
| CP 10 40 may purchase sprinkler loss from earthquake or volcanic eruption | The form may be used to purchase coverage for loss from a sprinkler system caused by earthquake or volcanic eruption. | PC360: Earthquake CP 10 40 |
| PSE on commercial property; safeguards include sprinkler systems; P-1 Automatic Sprinkler System | Protective safeguards endorsements are added to commercial property policies to ensure that any protective safeguards an insurer believes are in place exist yet are maintained by the insured. Protective safeguards can include sprinkler systems, burglar or fire alarms, automatic cooking exhaust and extinguishing systems, or something else. … P-1 Automatic Sprinkler System | IRMI: Protective Safeguards Endorsements |
| Maintain PSE safeguards in complete working order; restore full protection within 48 hours | Maintain the protective safeguards listed in the Schedule, and over which you have control, in complete working order. … However, if part of an Automatic Sprinkler System or Automatic Commercial Cooking Exhaust And Extinguishing System is shut off due to breakage, leakage, freezing conditions or opening of sprinkler heads, notification to us will not be necessary if you can restore full protection within 48 hours. | IRMI: CP 04 11 conditions / 48 hours |
| Conifer forms PDF lists SPRINKLER LEAKAGE EXCLUSION endorsement (optional exclusion) | THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. SPRINKLER LEAKAGE EXCLUSION This endorsement modifies insurance provided under the following: CAUSES OF LOSS – BASIC FORM CAUSES OF LOSS – BROAD FORM CAUSES OF LOSS – SPECIAL FORM | Conifer: SPRINKLER LEAKAGE EXCLUSION (optional) |
What commercial property sprinkler coverage pays
On commercial causes of loss forms, sprinkler leakage is a covered cause: loss from leakage or discharge of any substance from an automatic sprinkler system, including collapse of a tank that is part of the system. PropertyCasualty360 states that this coverage is provided automatically and can be removed only with endorsement CP 10 56 (Sprinkler Leakage Exclusion). Conifer's Michigan Hospitality Property Forms PDF lists the same ISO-style definition and the optional SPRINKLER LEAKAGE EXCLUSION endorsement — an exclusion endorsement, not the default.
When the building or structure containing the Automatic Sprinkler System is Covered Property, the form also pays to repair or replace damaged system parts if the damage results in sprinkler leakage or is directly caused by freezing, and to tear out and replace any part of the building to reach the damaged system.
Automatic Sprinkler System components
| Component | In Automatic Sprinkler System definition | Source |
|---|---|---|
| Sprinklers and discharge nozzles | Yes | Conifer forms PDF / PC360 |
| Ducts, pipes, valves and fittings | Yes | Conifer forms PDF / PC360 |
| Tanks, component parts and supports | Yes (including tank collapse as sprinkler leakage) | Conifer forms PDF / PC360 |
| Pumps and private fire protection mains | Yes | Conifer forms PDF / PC360 |
| Nonautomatic systems / hydrants / standpipes / outlets supplied from automatic system | Yes when supplied from an automatic fire-protective system | PC360 / Conifer forms PDF |
Sources: PC360 sprinkler-leakage and Conifer forms PDF.
Exclusion endorsement CP 10 56 and protective safeguards
CP 10 56 lets an insurer or insured exclude sprinkler leakage for property identified in the declarations on basic, broad, or special causes of loss forms. That is an optional exclusion — not how unendorsed causes of loss forms treat sprinkler leakage.
Separately, Protective Safeguards endorsement CP 04 11 (IRMI and PC360) schedules safeguards such as P-1 Automatic Sprinkler System and requires the insured to maintain listed safeguards in complete working order and notify the insurer of impairments. Insureds with automatic sprinklers have forty-eight hours to restore a nonfunctioning system before notification is required. CP 10 40 may be used to purchase coverage for loss from a sprinkler system caused by earthquake or volcanic eruption.
Vacancy and freeze protection
PropertyCasualty360 lists the commercial property vacancy clause for sprinkler leakage: if the building has been vacant for more than sixty consecutive days before the loss, the insurer will not pay for sprinkler leakage unless the named insured has protected the system against freezing.
What does commercial property policy sprinkler coverage include?
Commercial property policy sprinkler coverage pays for direct damage from leakage or discharge of any substance from an automatic sprinkler system, including collapse of a tank that is part of the system. Causes of loss forms provide it automatically unless endorsement CP 10 56 excludes it.
Does commercial property insurance cover cost to tear out walls to reach a sprinkler leak?
Yes, when the building containing the Automatic Sprinkler System is Covered Property. Forms pay the cost to tear out and replace any part of the building or structure to repair damage to the Automatic Sprinkler System that resulted in sprinkler leakage.
What sprinkler system components are included in an Automatic Sprinkler System?
Automatic Sprinkler System means sprinklers and discharge nozzles; ducts, pipes, valves and fittings; tanks with component parts and supports; and pumps and private fire protection mains. Nonautomatic systems, hydrants, standpipes, and outlets supplied from an automatic system are also included.
Can sprinkler leakage be excluded from a commercial property policy?
Yes. Endorsement CP 10 56 (Sprinkler Leakage Exclusion) may be used with basic, broad, and special causes of loss forms to exclude sprinkler leakage for property identified in the declarations. It is an optional exclusion endorsement, not the default coverage position.
What are protective safeguards duties for automatic sprinklers on commercial property?
Protective Safeguards endorsement CP 04 11 identifies fire-protection safeguards such as P-1 Automatic Sprinkler System and requires keeping systems in complete working order. Insureds with automatic sprinklers have forty-eight hours to restore a nonfunctioning system before they must notify the insurer.