Businessowners Policy (BOP)

Question 1

Businessowners Policy (BOP)

Answer 1

A combination policy providing several different coverages for businesses that meet the eligibility requirements. Established in 1976.

Question 2

BOP Purpose

Answer 2

• For small to medium-sized businesses
• Prepackaged policy that contains both property and liability coverages
• Coverage that is automatically included in a package policy cannot be excluded by the insured

Question 3

Eligible businesses under BOP

Answer 3

• Apartments
• Office buildings (up 100k square feet)
• Mercantile/processing/service establishments
• Contractors (certain types)
• Convenience stores (no auto service & >50% gas sales)
• Fast-Food Restaurants (up to 7.5k square feet, only 25% beer and wine gross sales)

Question 4

Optional Coverages for BOP & their definitions

Answer 4

• Outdoor Signs - All outdoor signs owned or in the control, custody, or care of the insured can be covered
• Money & Securities - Loss of money and securities resulting from disappearance, theft, or destruction can be covered
• Employee Dishonesty - Loss to money and securities or business personal property that results from dishonest acts of employees is covered
• Equipment Breakdown Protection - This coverage provides protection for a direct loss or damage to covered property resulting from a mechanical breakdown or electrical failure to mechanical, pressure or electrical equipment and machinery

Question 5

BOP coverage includes several additional coverages such as? **pay attention to the numbers

Answer 5

• Debris Removal: 25%/180 days/$10k
• Preservation of property: 30 days
• Fire Dept service charge: $2500
• Business Income: Actual loss / 12 months / ordinary payroll
• Extended Business Income: 30 days
• Extra expense: Actual sustained loss / 12 months
• Pollutant Cleanup: $10,000 / 12 months
• Civil Authority: 72 hours / 4 weeks
• Money Orders & Counterfeit Currency: $1000
• Forgery: $2500
• Increased cost of construction: $10k
• Fire extinguisher systems recharge: $5000
• Electronic Data: $10k
• Computer Ops Interruption: $10k
• Wet rot, dry rot, fungi: $15k
• Personal Property off premises: $10k
• Outdoor Property: $2500
• Valuable papers and records: $10k
• Accounts Receivable: $10k