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Flashcards in Chapter 8 - Business Owners Deck (23)
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Texas Business Owners Policy

Used to cover small to medium size business risks

1

What are the 6 categories that are eligible for Texas Business Owners Policy (TBOP)?

A Storm

Apartments
Self-storage
Trade contractors
Offices
Restaurants
Mercantile

Will not insure credit unions or banks

2

What are the 3 different forms offered for Texas Business Owners Policy (TBOP)?

Standard
Broad
Special

3

What forms cover theft under TBOP?

Broad
Special

4

What are the special limits for theft under TBOP?

Only applies to broad and special
$2,500 for furs and jewelry
$250 for stamps & tickets

5

What are the coverages for TBOP?

A-Building
B-Property
C-Business Liability
D-Medical Payments

6

What are the exclusions to TBOP for property coverage?

Aircraft
Automobiles
Money & Securities
Watercraft while afloat
Outdoor properties (fences, radio and tv antennas)

7

What are the additional coverages under TBOP?

Derbies removal
Preservation of property
Business income
Extra expense
Seasonal increase in business personal property limit

8

Extensions on Section 1 (property) for TBOP

These extensions are additional amounts of insurance for:
A building at a newly acquired premises
Property at a newly acquired premises
Personal property off premises
Outdoor property including signs $2,500
Trees, shrubs, plants and lawns $500 each
Valuable papers and records/electronic media

9

What are the different sections under TBOP?

Section 1 - Property
Section 2 - Liability

10

What are optional coverages under TBOP?

Outdoor signs
Money and securities
Employee dishonesty
Mechanical breakdown

11

What is Section 1 under TBOP?

Property

12

What is section 2 under TBOP?

Liability

13

What is Coverage C under TBOP?

Business liability
Covers for bodily injury, property damage, personal injury and advertising injury
$300,000 per occurrence

14

What is Section D under TBOP?

Medical Expenses
Is available without regard to fault or negligence filed within 1 year of the occurrence

$5,000 per person

15

What are the exclusions to liability coverage under TBOP?

Intentional injury
Insured contract
Liquor liability
Workers compensation
Pollution
Aircraft, watercraft, or auto
Mobile equipment while being transported
War
Property the insured owns
Damage to the insured's product
Impaired property or property that has been recalled
Nuclear hazards
Knowingly saying or printing false information
BI to an insured or tenant of the insured

16

What are the limits on Section II (liability) on TBOP?

Business Liability and Medical Expenses CSL of $300,000
Medical Expenses $5,000 per person

All paid claims reduce one of two aggregate limits

Product Aggregate - applies to products and completed operations equal to one occurrence limit

General Aggregate - applies to premises or operations, equal to two occurrence limits

17

What is the deductible under TBOP?

Deductible for all loses under TBOP is $500
There is no deductible for business income or extra expenses

18

What happens to a TBOP when the property has been vacant for more than 60 days?

No coverage for freezing, glass breakage, water damage, vandalism, or theft

19

Can employee dishonesty be covered under TBOP?

Yes, with an optional coverage.

20

What is a major difference between Broad and Special Forms on TBOP?

Special covers all risks

21

Under TBOP loss of personal property off premises by the insured is covered up to

$5,000

22

Under TBOP, how much is paid for property damages by a fire after the insured building has been vacant for more than 60 days?

Amount of loss, minus 15%