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Flashcards in The Businessowners Policy (BOP) Deck (4)
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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.

Size and nature

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.

A) 35,000 square feet
B) $6 million

3

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

•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

4

The ISO Businessowners Coverage Form has three sections:

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