Understanding COPE: The Key to Stronger Commercial Property Submissions

• February 23, 2026

By Terri John

In commercial property insurance, accurate underwriting is critical to ensure appropriate coverage, fair premiums, and effective risk management. One of the most essential underwriting tools is COPE—Construction, Occupancy, Protection, and Exposure. Along with precise building valuations, COPE forms the backbone of any commercial property risk assessment, especially in the excess & surplus insurance market.

COPE is the framework underwriters use to understand a commercial property’s risk profile. Each of these four elements provides insight into loss potential and insurability:

1) Construction. This elementevaluates the physical structure and its response to fire, natural disasters and other hazards by looking at the following:

• Building materials—frame, masonry, fire-resistance, and combustibility.

• Age of structure and potentially outdated systems.
• Size and layout, affecting total versus. partial loss potential.

2) Occupancy. In assessing how the building is used and by whom directly impacts the risk, underwriters look at the following:

• Type of business, for example, an office versus a flammable goods warehouse.
• Operations that affect hazard level, such as chemicals or the use of heating equipment.
• Vacancy, which increases vulnerability to damage and vandalism.

3) Protection. Underwriters review the systems that are in place to minimize loss, including:

• Internal protection, such as alarms, sprinklers and extinguishers.
• External protection, such as proximity to fire services, hydrants and water supply.

4) Exposure. Assessing external risks that could affect the property, underwriters review:

• Natural hazards, such as floods, earthquakes, wildfires and windstorms.
• Surrounding risks, including neighboring buildings with hazardous operations or materials

COPE and the ACORD 140 Form

COPE details are captured on the ACORD 140 – Property Section. Providing precise, complete information on this form ensures underwriters have the information they need to evaluate the risk and provide an appropriate quote.

In the E&S space, where nuanced, detailed risk profiles matter, thorough completion of the ACORD 140 helps keep the underwriting process moving and avoids mispriced coverage.

Underwriters rely on COPE data to assess risk by providing a comprehensive view of a property’s vulnerability and to make informed policy decisions regarding eligibility, coverage limits, deductibles, and premiums. COPE information also supports accurate data collection, as brokers and applicants must gather and present these details to create a complete and credible risk profile for underwriting consideration.

In the E&S market, where risks are often more complex and harder to place, detailed COPE information is even more essential. It enables underwriters to evaluate non-standard risks with precision, tailor coverage terms appropriately, and identify opportunities to improve risk that may lower premiums. Because of this added complexity, most E&S carriers require thorough COPE data, a statement of values and loss history as part of their submission process.

Accurate building valuations are equally important, as they establish proper replacement cost and coverage limits, help avoid underinsurance and the significant financial gaps it can create after a loss, ensure fair premiums by preventing unnecessary overvaluation, and support efficient claims handling with fewer disputes.

Terri John is vice president of commercial binding at Arlington/Roe^®.