BOP Flashcards
What are the newest limits for a business to qualify for a BOP?
- Cannot exceed 35,000 Square Feet
2. Cannot exceed $6M in annual gross sales
What types of businesses are not eligible for a BOP?
- Anything risky*
1. Manufacturers
2. Auto Repair
3. Bars/Pubs
4. Banks
5. Self Storage of motorized vehicles
What types of business are eligible for a BOP?
- Safe businesses or potentially safe businesses*
1. Apartment/Condo buildings
2. Wholesale
3. grocery stores and supermarkets that sell gasoline
4. office buildings
Is property leased by the Insured covered under a BOP?
Yes, leased personal property that the Insured is contractually responsible to insure is covered
A Tenant occupying a rented premises for their retail store installs cabinets and light fixtures to the building. What type of coverage would provide coverage if a covered peril destroys those alterations?
Improvements and Betterments under the Personal Property
What types of personal property of others is covered under the BOP?
- Property lent to the Insured
- Property of Visitors
- Property of Employees
What types of property of others is not covered under the BOP?
Money, animals (except as stock while inside the building), autos for sale.
What is the difference between the Condominium Association Coverage Form and the Condo Unit Owner form?
The Unit Owner form is designed for businesses that reside within a condominium unit. The association form is for the condo association that owns the outer portions of the unit.
What is the purpose of the Builder’s Risk Form?
Coverage designed to cover buildings under construction. A BOP without this endorsement would not cover a building under construction.
Multiple Choice Which Covered causes of loss form is used for the BOP? A. Actual Cash Value B. Replacement Cost C. Open Perils D. Stated Value
Open Perils - unless the loss is excluded, the loss to a covered building and business property is the risk of direct physical loss (open perils)
Multiple Choice
Section I – Property of the BOP covers which of the following types of property?
a. Outdoor furniture
b. Land
c. Pet animals
d. Accounts, bills, and other evidences of debt
Outdoor Furniture - the BOP also covers buildings and business personal property located in or on or within 100 feet of the covered building
Describe Business Income and Extra Expense
Provides coverage for loss of business income resulting from the necessary suspension of the insured’s operations from a covered loss. Extra Expense would pay for the extra expenses incurred to conduct business (having to rent a new location because your original location burned down)
Bobby has a business where he sells toys. Around November, his inventory triples for the holiday season. What type of coverage would you recommend Bobby?
Peak Season Endorsement
Bobby sometimes creates his own toys for his toy shop. Last November he created a toy soldier that was defective. Is he covered under his BOP policy?
No. The BOP excludes product errors that are not caused by a covered peril.
Is there a dollar limit to the BOP Business Income and Extra Expense Coverage form?
No, but there is a 12 - month maximum on the Insured’s loss recovery and ordinary payroll will only be covered for up to 60 days unless otherwise noted in the declarations.
