Section 3D Flashcards
(41 cards)
BOP is designed for
small businesses
BOP is a package policy designed for
Limited cooking or fast food restaurants, convenience stores , service or processing type businesses, small office buildings, apartment buildings, and retail stores
BOP has very competitive
Rates coupled with direct-bill renewal procedures
BOP is similar to
A homeowners policy except it is for small businesses.
Both property and liability coverages
Are included in the BOP
The BOP allows the policyholder great flexibility permitting
Insureds to add additional coverages like crime or boiler and machinery to the package.
Office buildings may not exceed 6 stories or have no more than
100,000 sq ft.
Retail or service businesses may not have more than
25,000 sq ft and/or gross annual sales in excess of $3,000,000
Office condominium associations
Are also eligible as processing-type businesses
On a BOP, ineligible businesses are
Taverns, auto dealers, banks, credit unions,manufacturing companies, and contractors
10 days advance notice is required
If cancellation due to nonpayment will occur.
BOP property coverage form is
All-risk
A limit of insurance must be
Shown on the declarations for each type of property to be covered.
If named peril endorsement is added, it will cover
Fire, lightning, extended coverage, vandalism, sprinkler leakage, sinkhole collapse, volcanic action, and peril of transportation.
Peril of transportation
Loss to business personal property in transit due to collision, derailment, or sinking of vessels
Theft of business personal property is covered since
All-risk coverage applies to both the building and the contents
To determine what an all-risk policy covers, you must
Look at the policy’s exclusions and /or limitations
The BOP property coverage form provides additional extensions of coverage
Such as debris removal
The BOP property coverage form also automatically includes coverage for loss of business income due to
A covered loss and extra expense incurred during a period of restoration.
In the BOP, both loss of business income and extra expenses are indirect coverages that are included
Without any maximum policy limit.
Covered for 12 consecutive months after the date of loss
The BOP will pay up to
$10,000 to extract pollutants.
Fire Dept. Service Charges are covered up to $2,500 in addition to limits.
BOP replaces or restores electronic data up to
Annual aggregate of $10,000.
Also damage caused by fungi, wet or dry rot, or bacteria if resulting from other than fire or lightning is $15,000 and is not in addition to limits.
The BOP is…
All-risk (theft coverage of furs, jewelry, and watches to a maximum of $2,500),
Built-In automatic increase (inflation guard),
Replacement Cost Basis
$500 deductible
BOP excludes money and
Securities unless crime coverage is purchased.