Chapter 8 - Business Owners

Question 0

What are the 6 categories that are eligible for Texas Business Owners Policy (TBOP)?

Answer 0

A Storm

Apartments
Self-storage
Trade contractors
Offices
Restaurants
Mercantile

Will not insure credit unions or banks

Question 1

Texas Business Owners Policy

Answer 1

Used to cover small to medium size business risks

Question 2

What are the 3 different forms offered for Texas Business Owners Policy (TBOP)?

Answer 2

Standard
Broad
Special

Question 3

What forms cover theft under TBOP?

Answer 3

Broad

Special

Question 4

What are the special limits for theft under TBOP?

Answer 4

Only applies to broad and special
$2,500 for furs and jewelry
$250 for stamps & tickets

Question 5

What are the coverages for TBOP?

Answer 5

A-Building
B-Property
C-Business Liability
D-Medical Payments

Question 6

What are the exclusions to TBOP for property coverage?

Answer 6

Aircraft
Automobiles
Money & Securities
Watercraft while afloat
Outdoor properties (fences, radio and tv antennas)

Question 7

What are the additional coverages under TBOP?

Answer 7

Derbies removal
Preservation of property
Business income
Extra expense
Seasonal increase in business personal property limit

Question 8

Extensions on Section 1 (property) for TBOP

Answer 8

These extensions are additional amounts of insurance for:
A building at a newly acquired premises
Property at a newly acquired premises
Personal property off premises
Outdoor property including signs $2,500
Trees, shrubs, plants and lawns $500 each
Valuable papers and records/electronic media

Question 9

What are the different sections under TBOP?

Answer 9

Section 1 - Property

Section 2 - Liability

Question 10

What are optional coverages under TBOP?

Answer 10

Outdoor signs
Money and securities
Employee dishonesty
Mechanical breakdown

Question 11

What is Section 1 under TBOP?

Answer 11

Property

Question 12

What is section 2 under TBOP?

Answer 12

Liability

Question 13

What is Coverage C under TBOP?

Answer 13

Business liability
Covers for bodily injury, property damage, personal injury and advertising injury
$300,000 per occurrence

Question 14

What is Section D under TBOP?

Answer 14

Medical Expenses
Is available without regard to fault or negligence filed within 1 year of the occurrence

$5,000 per person

Question 15

What are the exclusions to liability coverage under TBOP?

Answer 15

Intentional injury
Insured contract
Liquor liability
Workers compensation
Pollution
Aircraft, watercraft, or auto
Mobile equipment while being transported
War
Property the insured owns
Damage to the insured's product
Impaired property or property that has been recalled
Nuclear hazards
Knowingly saying or printing false information
BI to an insured or tenant of the insured

Question 16

What are the limits on Section II (liability) on TBOP?

Answer 16

Business Liability and Medical Expenses CSL of $300,000
Medical Expenses $5,000 per person

All paid claims reduce one of two aggregate limits

Product Aggregate - applies to products and completed operations equal to one occurrence limit

General Aggregate - applies to premises or operations, equal to two occurrence limits

Question 17

What is the deductible under TBOP?

Answer 17

Deductible for all loses under TBOP is $500

There is no deductible for business income or extra expenses

Question 18

What happens to a TBOP when the property has been vacant for more than 60 days?

Answer 18

No coverage for freezing, glass breakage, water damage, vandalism, or theft

Question 19

Can employee dishonesty be covered under TBOP?

Answer 19

Yes, with an optional coverage.

Question 20

What is a major difference between Broad and Special Forms on TBOP?

Answer 20

Special covers all risks

Question 21

Under TBOP loss of personal property off premises by the insured is covered up to

Answer 21

$5,000

Question 22

Under TBOP, how much is paid for property damages by a fire after the insured building has been vacant for more than 60 days?

Answer 22

Amount of loss, minus 15%