Lesson 9: Business Owners Policy

Question 1

Business Owners Policy (BOP) - what does it cover

Answer 1

small and medium-sized businesses like apartment buildings, office buildings, retail stores, trade contractors, specific mercantile, wholesale risk, and servicing and processing risk.

Question 2

BOP package policy includes

Answer 2

• Property
  
  • Liability
  • Business Income

Question 3

BOP - 2 coverage sections

Answer 3

I- Property and Section II- Liability

Question 4

Components of the BOP

Answer 4

1 BOP Declarations Page

2 BOP Common Conditions

3 Standard or Special Coverage form ( one or the other, although most are special)

4 Liability Coverage

5 Endorsements

Question 5

BOP - ineligible business types

Answer 5

any business dealing with cars, bars, banks or manufacturing: Auto, motor home, motorcycle or mobile home dealerships; auto repair or service stations, amusement places- theaters, bowling alleys, amusement parks; banks, credit unions, financial institutions; bars, grills or restaurants.

Question 6

BOP Property coverage - includes

Answer 6

Coverage A- Building(s)
Coverage B- Business Personal Property

Question 7

BOP Property coverage - does not include

Answer 7

Aircraft, autos, trucks, money bullion, contraband, land, lawns, growing crops,
watercraft

Question 8

BOP additional coverage provided automatically

Answer 8

Debris Removal- extra $25,000 above policy limits
Property removed- 30-day limitation
Fire Department Service Charge- up to $2,500
Business income- an actual loss for 12 months
Extra expenses such as Pollutant Clean up

Question 9

BOP Deductibles

Answer 9

The standard deductible $500. Optional deductible amounts of $250, $1000 and up to $2,500 are available.

Question 10

BOP optional coverages

Answer 10

-Employee Dishonesty
-Equipment Breakdown (boilers, pressure vessels, and some air conditioners)
-Outdoor Signs - max $2500 without this option
-Money and Securities (special form only - all risk)
-Burglary and robbery (standard form only)
-Interior glass - permanently-mounted to interior walls, ceilings, or floors of the insured building.

Question 11

BOP loss settlement

Answer 11

BOP pays building and personal property losses on a replacement cost basis if the insured carries at least 80% of insurance to value — otherwise, ACV. No coinsurance.

Question 12

BOP liability coverage

Answer 12

-Business liability
-Medical payments

Question 13

BOP Business liability includes

Answer 13

Products and completed operations; premises and operations; PI and advertising; Host Liquor Legal Liability; Fire Legal liability

Question 14

BOP liability coverage will cover medical expenses of others occurred within…

Answer 14

one year of the accident date

Question 15

A business owner policy is a…

Answer 15

self-contained complete package policy

Question 16

The largest office building that may be eligible for a business owners policy is:

Answer 16

six stories and 100,000 feet

Question 17

Does BOP include pollution liability?

Answer 17

No