Business owners policy Flashcards
(36 cards)
what are the limitations as far as square feet and annual gross revenue on a BOP?
25,000 square feet and $3,000,000 in revenue
How many stories can a motel not exceed in a BOP?
three stories
How many stories and square feet can an office not exceed in a BOP?
six stories/100,000 square feet
For processing and service risks companies how much percentage of sales is only eligible?
25%
How many stories can a self storage faciltiy not exceed?
two stories
How much percent of a whole sale risk compay not exceed in annual gross sales?
25%
How much percent cannot be open to the public?
25%
What type of places of business are not eligible for a BOP?
- auto repair shops
- auto or motor home
- banks buildings and financial institutions
- bars and pubs
- condomininum assocations
- household personal property
- insured whose busines operations involve one or more locations used for manufacturing
- or one or two family dwellings
- parking lots or garages
- places of amusement
What does Coverage A cover?
buildings
what does coverage a include?
- completed additions
- permanently installed machinery and equipment
- fixtures, including out door fixtures, such as lawnmowers, garden hoses, and snow removal equipment
- personal property used to maintain or service buildings
- personal property furnished by the insured in apartments
What are the five different classes of business personal property that are covered under coverage A?
- property owned and used by the insured in the business
- property of others in the insureds care
- tenants improvements and betterments
- leased personal property that the insured has a contractual responsibility to the insureds care, custody or control
- exterior building glass
What are tenants improvements and betterments?
Fixtures, alterations, installations, or additions that tenants make to rented buildings which they operate for business
For coverage to apply this items must be permanently attached to the building, acquired or made at the insured’s expense and unable to be legally removed
When is exterior building glass covered?
as business personal property for insured who are tenants and do not have building coverage. The glass must be owned by the insured.
Which properties are not covered under the BOP?
1- accounts, bills, food stamps
2- aircraft
3-computers that are permanentally installed in an aircraft, watercraft, motor truck, or other vehicle subject to motor vehicle registration
4-contraband and property being ilegally traded or transported
5- land, water, growing crops or lawn
6-money and securties
7-motor vehicles
8-outdoor fences, trees, shrubs
9-outdoor radio or tv antennas, outdoor signes not attached to building, watercraft
Is steam equipment or heating equipment covered?
Not if damage results from a condition that originates inside the equipment
Is there coverage for property that is missing?
no but there is a money and securities optional coverage
What is covered in the interior of the building?
damage against rain, snow, sleet, ice or dust oly if the roof walls are first damaged bya covered cause of loss that enables these elements to enter or if the loss or damage is caused by a result from thawing of snow sleet or ice on the building
Are Fragile articles covered?
only if damage is caused by building glass breakage or the specified cause of loss named in the policy
How many days is the insured to report debris removal expense for it to be covered?
180 Days
What is the amount reimbursed for debris removal?
25% of the amount paid for the direct physical loss plus the deductible that is applicable to that loss
When is an additional $10,000 of insurance available for each location?
1- the direct physical loss and the debris removal expense together exhaust the limit of insurance
2-the maximum amount collectible for debris removal (25% of the loss + deductible) is not enough to cover the debris removal expense
How long does the insurance company pay for the loss of business income and extra expense coverage?
12 consecutive months after the date of the direct physical loss
What is the limit of the increased cost of construction coverage?
the limit is $10,000
When does the coverage for civil authority additional coverage begin?
72 hours after the action by the civil authority and for up to three weeks