The Businessowners Policy Flashcards
(41 cards)
What is the ideal BOP prospect?
Small, well managed, one location business with easily predicted coverage needs
What is the businessowners policy? (BOP)
A commercial package policy that provides property and liability insurance to certain types of small businesses.
What types of businesses are eligible under current ISO rules?
Certain wholesale, processing and service, restaurant, convenience store, and contracting risks.
In a BOP, what will the policy declarations show?
Policy number, name of insurer, name of producer, name and address of the named insured, and the policy period
What are the two major coverages in a BOP?
Coverage A - buildings
Coverage B - business personal property
What are the five different classes of business personal property covered?
- Property owned and used by the insured in the business
- Property of others in the insureds care, custody, or control
- Tenants improvements and betterments
- Leased personal property that the insured has a contractual responsibility to insure
- Exterior building glass
What is the property coverage on a BOP?
Open peril
What are the specified causes of loss in a BOP?
- Fire
- Lightening
- Explosion
- Windstorm or hail
- Smoke
- Aircraft or vehicles
- Riot or civil commotion
- Vandalism
- Leakage from fire extinguishing equipment
- Sinkhole collapse
- Volcanic action
- Falling objects
- Weight of snow, ice or sleet
- Water damage
What does the debris removal additional coverage do?
Pays for expenses to remove debris of covered property caused by a covered cause of loss during the policy period.
What is the collapse additional coverage?
Collapse of a building or part of a building is covered only when it is caused by one of the specified causes of loss, building glass breakage, hidden decay, hidden insect or vermin damage, weight of people or personal property, weight of rain that collects on a roof, or use of defective materials or methods in construction, remodeling, or renovation if the collapse occurs during the course of the construction, remodeling, or renovation.
What is the business income additional coverage?
The insurance company will pay for loss of business income that occurs when the insureds business operations have to be suspended after a loss and income cannot be generated.
What is the extra expense additional coverage?
Allows reimbursement for additional costs an insured incurs to avoid or minimize suspending business operations after a loss
What is the increased cost of construction additional coverage?
Applies only to buildings insured on a replacement cost basis. If a covered cause of loss damages a covered building, the company will pay the additional costs required to comply with an ordinance or law in repairing the damage or replacing damaged parts. Has a $10,000 limit
What is the civil authority additional coverage?
Available for losses that result from actions of civil authorities. Covered is business income an insured loses when a civil authority denies the insured access to the described premises because property not at the described premises was damaged by a covered cause of loss
What is the forgery and alteration additional coverage?
Applies to an insureds loss that results directly from someone forging or altering checks, drafts, and similar items made or drawn by or on the insured or the insureds agent.
What is the business income from dependent properties coverage?
Covers loss of business income the insured sustains due to physical loss or damage at a dependent property from a covered cause of loss. Coverage is limited to $5,000
What is the electronic data additional coverage?
Pays to replace or restore electronic data that may have been destroyed or corrupted by a covered cause of loss.
What is limited coverage for fungi, wet rot, dry rot and bacteria?
Provides limited coverage for fungus, wet rot, dry rot, or bacteria that result from a specified cause of loss other than fire or lightening.
What is the money orders and counterfeit money additional coverage?
Provides coverage for loss that results when an insured accepts these items in good faith and in exchange for merchandise, money, or services as part of normal business transactions.
What is the pollutant clean up and removal coverage?
Provides limited coverage for costs to extract pollutants from land of water at the insureds premises as a result of a covered cause of loss
What is the preservation of property coverage?
Covers the direct physical loss or damage from any cause of loss of the property has been removed to another location to preserve it from damage by a covered peril.
What is the water or other liquid, powder or molten materials additional coverage?
Covers damage to a building that indirectly results from the escape of these items.
What is the glass expenses additional coverage?
Covers expenses incurred to put up temporary plates or board up openings if repair or replacement of damaged glass is delayed.
What is the interruption of computer operations additional coverage?
Extends the business income and extra expense coverages to include a suspension of operations caused by an interruption in computer operations caused by destruction or corruption of electronic data
