The Businessowners Policy (BOP)

Question 1

The purpose of the BOP can best be explained by reviewing the types of business a BOP may cover. To do that, we’ll briefly summarize ISO’s eligibility rules. Keep in mind that individual insurers’ rules often vary. BOP eligibility is generally based on __ and __ of the business.

Answer 1

Size and nature

Question 2

For a business to be eligible for coverage under a BOP, ISO’s 2010 revision rules require that none of its locations can exceed ___ square feet in size (excluding basements not open to the public) and $___ in annual gross sales.

Answer 2

A) 35,000 square feet

B) $6 million

Question 3

According to ISO rules, the following types of businesses are ineligible for coverage under a BOP, regardless of their size:

Answer 3

• manufacturers
• auto repair or service stations; auto, motor home, mobile home, and motorcycle dealers; parking lots or garages
• bars and pubs
• places of amusement
• banks and other financial institutions
• self-storage facilities that provide outdoor storage of motorized vehicles of any type

Question 4

The ISO Businessowners Coverage Form has three sections:

Answer 4

• Section I—Property
• Section II—Liability
• Section III—Common Policy Conditions (which apply to both property and liability coverage sections