Ins Exam L - Businessowners Policy (BOP) Flashcards
Businessowners Policy Overview (BOP)
some of the BOP’s general characteristics incl:
- provides covrg for both liab ins and prop ins
- Prop covrg (buildings and business personal prop) typically provided on an open perils basis, but policy can be written on a named peril basis
- 1yr policy term or cotinuous basis
- premium recomputed annually
- 80% ins-to-value requirmnt
- business income incl
Eligible BOP Properties 1*
- Apts
- Residential condo assoc
- Office and office condo assoc
- mercantile, svc, or processing risks
- Motels
- Self-storage facilties
- Gas station/restaurant combo - lmtd covrg; varies by insurer
Eligible BOP Properties 2*
- Contractors - trade contractors whose work is primarily one specialty, such as a plumber, interior carpenter, or contractor of residential properties; 3 stories high or less
- Lmtd cooking restaurants (additional requirmnts also apply)
- Fast Food restaurants - seating capacity no greater than 150 seats
- GC not incl for this covrg (PQ)
Eligible Processing/ Service Risks
- Barber shop, salons - Shoe repair
- Dental Labs - Taxidermists
- Watch & jewelry repair - Bakeries
- Funeral homes, chapels - Photocopy svcs
- Laundry/ dry cleaner - Engraving
- Photographers - Lithographing
- Mailing or addressing - Printers
- Tailors - Dressmaking
- TV, radio, and appliance installation or repair
INELIGIBLE BOP PROPERTIES
- businesses covered by other commercial forms
- Auto repair or svc stations
- bars, grills, or restaurants
- stores that have any portion devoted to manufacturing or processing
- household personal property
- wholesalers
- places of amusement
- FI (banks, savings, and loan)
- 1 or 2 family dwellings, unless or garden apt variety and meet nec requirmnts
Building (Property) Covrg
- BOP Section I: Property Covrgs
Covrg incls buildings and structures @ the premises described
- OUTDOOR FIXTURES
- Personal prop used for maintenance of premises (fire extinguisher, outdoor furniture, appliances)
- materials, equipmnt, supplies used for repairs, additions, or alterations on or W/IN 100’ of described premises
Business Personal Property
- BOP Section I: Property Covrgs
Covers property in or on the building used in course of business
- TENANT’S IMPRVMNTS & BETTERMNTS
- Exterior building glass
- NEWLY ACQUIRED LOCATIONS - personal property @ a new location is covred for 30 days or up to $100k ($5k off premises)
Property Not Covered
- BOP Section I: Property Covrgs
Covered property does not incl
- EXTERIOR SIGNS - except attached signs to the building ($1k); value may be increased for additional premium
- Land, water, growing crops, lawns
- Money & Securities - unless purchased as an option
- Contraband
BOP LIAB COVRG
- BOP Section II: Liability Covrgs
Incls same def, conditions, excls as CGL and covers
- host liquor liab
- personal and advertising injury
- FIRE LEGAL LIABILITY
- Premises medical pymnts
- SUPPLEMENTARY PYMNTS
- $200 per day plus legal costs
Liability Limits
- BOP Section II: Liability Covrgs
- the limits shown in the policy’s decs are the most that will be paid under the circumstances described in the policy
- MINIMUM LIMIT OF LIABILITY - $300k
- may be increased to $500k to $1m
- MEDICAL EXPENSE LIMIT - $5k
- Medical Pymnt Limits
- PER PERSON/ PER ACCIDENT (eg: $5k/ $25k)
- Regardless of fault
- FIRE LEGAL LIAB for TENANTS - $50k
Business Liab Covrg Excls incl
- BOP Section II: Liability Covrgs
- LIQUOR LIAB - War
- WC and similar limits - Prof Svcs
- Expected or intended injury
- Contractual liab - Electronic date
- Employer’s Liab - Criminal Acts
- Pollution - Mobile Equipmnt
- Nuclear Energy Liab
- Aircraft, Auto, or Watercraft
- Damage to insured’s prop, product, or wrk
SELECTED BOP ENDTS
- HIRED AUTO AUTO LIAB
- BOP SEction III: Common Policy Conditions
covers the insured’s liab for one or both of the following:
- Hired Auto - covers BI or PD that arises out of the maintenance or use of a hired auto by the insured or the insured’s EEs in the course of the insured’s biz
- hired autos are autos the insured leases, hires, or borrows, but not from EEs or membrs of their hseholds or any partnrs or exec offcr of the insured
SELECTED BOP ENDTS
- NON-OWNED AUTO LIAB
- BOP SEction III: Common Policy Conditions
Nonowned auto - covers BI of PD that arises out of the use of any nonowned auto in the insured’s biz
- Nonowned autos are autos not owned, leased, or borrowed by the insured but used in the biz
