2.2 Ohio Commercial Property Insurance
Key Takeaways
- Ohio commercial property insurance uses file and use rate regulation
- Commercial policies must disclose terrorism coverage options under TRIA
- Ohio allows surplus lines placement after diligent search of admitted insurers
- Surplus lines tax in Ohio is 5% of premium
- Business interruption and extra expense coverage follow standard commercial forms
Last updated: January 2026
Ohio regulates commercial property insurance with specific requirements for rates, surplus lines, and coverage availability.
Rate Regulation
Under Ohio file and use system, commercial property insurance rates:
- May be used immediately upon filing
- Subject to ODI review after implementation
- Must not be excessive, inadequate, or unfairly discriminatory
- Can be disapproved if ODI finds violations
Commercial Rate Filing
| Requirement | Details |
|---|---|
| Filing | Required before use |
| Approval | Not required before use |
| Review | ODI reviews after implementation |
| Disapproval | ODI can disapprove after review |
Terrorism Insurance
TRIA (Terrorism Risk Insurance Act)
- Federal program providing terrorism insurance backstop
- Ohio insurers must offer terrorism coverage
- Policyholder can accept or reject terrorism coverage
- Disclosure of coverage terms required
Required Disclosures
- Coverage limits for terrorism
- Premium for terrorism coverage
- Right to accept or reject
- Exclusions and limitations
Commercial Property Coverage
Ohio commercial property follows standard forms:
Coverage Types
| Coverage | Description |
|---|---|
| Building | Structure and permanently attached items |
| Business Personal Property | Contents, inventory, equipment |
| Business Income | Lost income during restoration |
| Extra Expense | Additional costs to continue operations |
Surplus Lines Insurance
Ohio allows surplus lines insurance for risks not available in the admitted market:
Surplus Lines Requirements
| Requirement | Details |
|---|---|
| Diligent Effort | Must attempt to place with admitted insurers |
| Affidavit | Producer must file affidavit of due diligence |
| Surplus Lines Agent | Must use licensed SL agent |
| Surplus Lines Tax | 5% of premium |
| Disclosure | Must disclose SL status to insured |
Ohio Export List
Ohio maintains a list of risks that may be exported directly to surplus lines without a diligent search:
- Unique or unusual risks
- Hard-to-place specialty coverage
- Excess and umbrella liability
- Professional liability for certain classes
Surplus Lines Insurer Requirements
- Must be approved by ODI
- Adequate financial strength required
- Listed on Ohio Surplus Lines Association list
- Subject to regulatory oversight
Business Interruption Insurance
Ohio commercial policies include business interruption provisions:
Key Provisions
- Coverage for lost income during restoration period
- Waiting period typically 72 hours
- Period of restoration clearly defined
- Extended period of indemnity available
- Civil authority coverage for government-ordered closures
Extra Expense Coverage
- Covers costs to continue operations during restoration
- Separate limit from business interruption
- Examples: temporary location, expedited repairs
Builders Risk
Ohio builders risk insurance:
- Covers buildings under construction
- Available on completed value or reporting form
- Theft coverage may require endorsement
- Transit coverage for materials available
- Soft costs coverage for delays
Test Your Knowledge
What is the Ohio surplus lines tax rate?
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D
Test Your Knowledge
Before placing a risk in the Ohio surplus lines market, a producer must:
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D