7 - Commercial Insurance Coverages

Question 1

BPP

Answer 1

-Buildings and Personal Property

Question 2

The BPP coverage pats for _______ to covered buildings and personal property.

Answer 2

-direct losses

Question 3

BPP coverage is provided for 3 classes of property:

Answer 3

• Buildings and Structures
• Business Personal Property
• Personal Property of Others

Question 4

BPP covers Buildings and Structures, Business Personal Property and Personal Property of Others within _____

Answer 4

-100 ft

Question 5

Bailee

Answer 5

-person/business that has care, custody and control of another’s property such as a repair shop

Question 6

BPP Coverage A

Answer 6

• additions under construction
• alterations and repairs to the building/structure
• materials, equipment and supplies
• outdoor fixtures
• appliances used for refrigeration, cooking or laundering
• temporary structures

Question 7

BPP Coverage B

Answer 7

• stock
• machinery
• equipment
• furniture
• fixtures
• all other property owned by the insured and used in the business

Question 8

BPP Coverage C

Answer 8

-a Bailee’s coverage

Question 9

Debris Removal BPP

Answer 9

• cost of debris removal is subject to a limit of 25% of the amount of loss minus the deductible
• if expense exceeds the 25% limit, up to an additional $10,000 Is available

Question 10

Preservation of Property BPP

Answer 10

• “open perils” basis

- for 30 days when property is moved to protect from potential loss

Question 11

Pollutant Clean-Up Removal BPP

Answer 11

• maximum of $10,000 in any 12 month period

- must be reported to insurer within 180 days of the date of loss

Question 12

Fire Department Service Charge BPP

Answer 12

• up to $1000

- no deductible

Question 13

Increased Cost of Construction BPP

Answer 13

-policy will pay the lesser of $10,000 or 5% of the policy limit due to building code requirements

Question 14

Coverage Extensions in BPP Form apply if a…

Answer 14

• coinsurance percentage of 80% or more is shown on the Declarations Page
• amounts from coverage extensions are in addition to the limits of insurance shown on the Declarations page

Question 15

6 Coverage Extensions for BPP

Answer 15

• Newly Acquired or Constructed Property
• Personal Effects and Property of Others
• Valuable Papers and Records (Cost of Research)
• Property off Premises
• Outdoor Property
• Non-owned Detached Trailers

Question 16

BPP Newly Acquired or Constructed Property

Answer 16

• limit for buildings is 25% of the amount for those on Declarations page
• not more than $250,000 at each building
• coverage for business personal property at any location that is acquired with a limit of 10% of Declarations page and cannot exceed $100,000 at each building

Question 17

Coverage for newly acquired or constructed property and personal property ends at the earliest of:

Answer 17

• policy expiration or 30 days after the insured acquires or begins to construct the property
• the date the insured reports the values to the insurer
• premium is charged from the time construction began or property was acquired

Question 18

Personal Effects and Property of Others BPP Extension

Answer 18

• theft losses are not covered

- limit is $2500 at each described premises

Question 19

Valuable Papers and Records BPP Extension

Answer 19

-limit of coverage is $2500 at each described premises

Question 20

Property off Premises BPP Extension

Answer 20

• property other than stock
• does not apply to vehicle or at any fair or exhibition
• limit is $10,000 per loss

Question 21

Outdoor Property BPP Extension

Answer 21

• loss is caused from fire, lightning, explosion, riot, civil commotion or aircraft
• limit is $1000 but not more than $250 for any one tree, shrub or plant

Question 22

Non-owned Detached Trailers BPP Extensions

Answer 22

-pays up to $5000 only if the loss occurs when the trailer is in the insured’s custody