unit19 Flashcards
what’s included in a business owners policy
property, liability, and other coverages
BOP requirements
• Less than 100 employees
• revenues of $6 million or less
• businesses occupying up to 35,000 sq ft
• owned buildings up to 100,000 sq ft and less than six stories
5. a majority of the operation is located on-premises
BOP includes what two major coverages
Coverage A- buildings
B- business personal property
limit of insurance is shown where
declarations
Building Coverage
- completed additions -permanently installed machinery and equipment
- Fixtures
- Personal property used to maintain or service buildings
- Additions
- Alterations
- Materials - on or pithing 100ft of the premises
five different classes of business personal property covered
- property owned and used by the insured in the business
- property of others in the insured’s care
- tenants improvements
- leased personal property
- exterior building glass
exterior building glass is covered for who
tenants who don’t have building coverage
property coverage in the BOP is provided on a what peril basis
open peril
for coverage provided on a named peril bases what can be added
an endorsement
amount reimbursed for debris removal
25% or the amount paid for the direct physical loss plus the deductible
total payment for loss and debris removal
25,000
when is collapse of a building covered?
- building glass breakage
- hidden decay
- hidden insect damage
- weight of people or personal property
- weight of rain of snow
this coverage is subject to the limits of insurance. it does not provide an additional amount of insurance
loss of business income additional coverage
is not subject to the limits of insurance
payment within 12 consecutive months after the date of the direct physical damage
extra expense coverage
allow reimbursement for additional cost incurred to avoid or minimize suspending business operations after a covered loss
this coverage is in addition to the insured’s limits of insurance
increased cost of construction additional coverage applies to what?
what is the coverage limit?
buildings insured on a replacement cost basis
10,000
civil authority additional coverage
when does coverage begin?
how long does it last for?
covered when civil authorities denies the insured access to the described premises because property not a the described premises was damaged
coverage beings 72hours after the action by the civil authority and if effective for up to four consecutive weeks
forgery and alteration additional coverage total payment
2,500 payment for a loss including legal expenses
what is a dependent property
A business that delivers, accepts, manufactures or attracts materials or services to or by the insured
what is the coverage limit for the business income from dependent properties coverage
when coverage begins
5,000 unless stated higher in declarations
72hours after - repaired
coverage limit for electronic data?
what is electronic data
10,000
facts, info, programs
fungi, wet/dry rot and bacteria coverage limit
15,000 within 12 months
must occur during the policy period
money orders and counterfeit money limit
1,000
pollutant clean up and removal
does what the debris removal doesn’t do
limit 10,000 for each 12-month policy
preservation or property
covers while temporarily stored to another location for 30 days from the day the property was first moved
fire department service charges
standard limit 2,500
water or other liquid
does not include flood
glass expenses
put up temp plates or board if repair is delayed
fire extinguisher systems recharge expense
if discharged on or within 100ft
accidental
5,000 per occurrence
loss caused by a power failure that occurs on the insured’s premises is covered by what policy
business owners
Not Covered:
underground water seepage
equipment breakdown
city ordinance tears down building
newly acquired or constructed coverage extension
covers new property Buildings for 250,000 each
30 days
business personal property
limit
time frame
extended to newly acquired or constructed buildings. for personal property 100,000 at each location
for 30 days after acquisition or construction has begun good until policy expires or until values are reported
coverage extension to property exclusion
limit
money, securities, valuable papers, records, accounts
10,000
extended to outdoor property limit
2,500
1,000/tree
business personal property coverage extended to personal effects owned by the insured’s officers, partners, or employees limit
2,500 at each insured premises
valuable paper and records coverage extension limit
10,000
optional coverages have to be what and require what
designated in the declarations and require an additional premium
employee dishonesty covered period
discovered within one year from the end of the policy period a.k.a. discovery period
definition of object
- certain boiler and pressure vessels
2. certain types of air-conditioning units
limit of insurance is specified where
declarations
money and securities insured’s as a result of
has to located where
theft, disappearance, or destruction
bank, described premises, in transit between any of these places
standard deductible for property losses
500
deductible applies to what
mandatory and optional building and business personal property coverages.
not to the fire department, extra expense, business income, civil authority, or fire extinguisher
advertising injury
hurt feelings
requirements to cover injuries and offenses
must take place in the coverage territory and occur during the policy period
liability coverage
when does it end
- bodily injury
- property damage
- personal injury
- advertising injury
duty to defend ends when policy limits have been paid
supplementary payments
- expenses the insurance company incurs
- up to 250 in bail bond
- reasonable expense including 250/day
- cost the insured is required to pay because of a lawsuit
- prejudgment interest the insured is required to pay
- interest that accuses after a judgment and before it is paid
do not reduce the policy limit
medical expenses coverage covers
- first aid when an accident occurs
- medical services
- funeral services
without regard who is at fault
will pay within one year of the date of accident
medical expenses generally not be paid for if
insured, employee, can get workers comp, or normally occupies space where injured
business liability coverage
- false arrest
- malicious prosecution
- wrongful eviction
- wrongful entry
- invasion
- oral or written slander
- use of another’s advertising idea
- infringement of copyright
medical expenses will pay reasonable expenses for first aid, medical services, and funeral services within what time frame?
1 year of the date of the accident
who is insured under the individual designation under the business owners policy
named insured + spouse
who is insured under the partnership designation under the business owners policy
named insured + named insured’s partners and their spouses
who is insured under the limited liability company designation under the business owners policy
named insured
members
managers
who is insured under the corporation designation under the business owners policy
named insured
executive offices and directors
other considered insureds under the business owners policy
employee or the named insured and if named insured dies the legal representative
where are insurance limits documented
in the policy’s declarations
liability and medical expenses covers:
total of all damages that arise out or
- bodily injury
- property damage
- medical expenses
- personal injury
- advertising injury to one person or organization
what two aggregates are two times the limit shown in the declarations
- injury or damage under the products-completed operations hazard
- all other injury, damage, or medical expenses except fire legal liability losses
what are common policy conditions
conditions that apply to the entire policy
what are the two sets of conditions for the property. coverage
- property general conditions
2. property loss conditions
what are liability conditions called
liability and medical expenses general conditions
what is the utility services - direct damage coverage endorsement
covers loss or damage to property caused by an interruption in water, be communication, or power supply service
property must scheduled for coverage on the endorsement and the service
what does the utility services - time element coverage endorsement cover
pays for loss of business income or extra expenses if damage is outside the covered building
what is the protective safeguards endorsement
requires insured to maintain protective devices or services listed on the endorsement as a condition of the policy
otherwise:
payment not made by insurers if fire damage or burglary e losses occur or insurer wasn’t notifies within 48hrs of device not working
hired auto and non owned auto liability endorsement available when
the insured business doesn’t have commercial auto insurance
there are two sets of conditions that apply to every policy for property coverage. what are they
- property general conditions
2. the property loss conditions
in addition to max floor space of 35,000, the business owners eligibility rules limit eligible risks to max of
6 million in annual sales
the largest building risk that may be eligible for a business owners policy is
6 stories and 100,000 sq ft
what is covered in Coverage B - business personal property
- exterior building glass,
- tenant improvements (permanently installed),
- personal leases property
accounts receivable and Land is excluded
limit of coverage for valuable papers and records
10,000
medical payments of BOP does not cover what
medical expenses arising out of automobile accidents
BOP provides liability protection for
damages because of bodily injury, property damage, personal injury or advertising injury
fire dept. limit
2,500
limit for cost of construction
10,000
business owners liability coverage includes what
personal and advertising injury
mechanical breakdown is covered if what
adds this as an optional coverage and usually requires an additional premium
tree and detached signs are what kind of coverage
extension not an additional coverage
business income pays for what
loss of business revenues if it has been caused by a covered loss.
BOP additional coverages - automatically included
- debris removal 25%, 25,000 total
- collapse
- loss of business income
- extra expense
- increased cost of construction
- action of civil authority
- forgery or alteration 2,500
- business income from dependent properties 5,000
- electronic data 10,000
- fungi, wet rot, dry rot, and bacteria 15,000/policy
- money orders counterfeit money 1,000
- pollutant cleanup 10,000/policy
- preservation or property 30 days
- fire department service charge 2,500
- water or other liquid
- glass
- fire extinguisher 5,000/occurrence
coverage extensions
- newly acquired
- buildings 30 days, 250,000
-personal property 30 days, 100,000 - trees and detached signs
-max 2,500
-max/tree 1,000 - personal pro of others-2,500
- valuable papers and records
10,000
NTPV
optional coverages - additional premium
- employee dishonesty
- mechanical breakdown
- outdoor signs
- money and securities
ENOM
optional coverages - standard deductible
base deductible applies to all building and personal property
limit for valuable papers at prescribed premises
limit for valuable papers not at prescribed premises
10,000
5,000
BOP coverage B personal property excludes what
customers property
property coverage in the unendorsed BOP is provided on what type of basis
open perils (special form)
bodily injury coverage applies if
the owner is negligent
the liability section of the BOP excludes coverage for what
employer’s liability because it’s better covered by worker’s compensation
limit on loss of earnings
250/day
medical expenses vs medical payments and personal injury
medical expenses- accident
(medical payments and personal injury)- negligence
the standard deductible for the business owners policy applies to what?
how much is it?
civil commotion.
standard deductible for the BOP is $500
a base deductible applies to what
all the building and business personal property coverages including mandatory and optional coverages
no deductible applies to what
- fire department service charge,
- extra expense,
- business income,
- civil authority, and
- fire extinguisher systems recharge expense
when is an additional 25,000 available
- the direct physical loss and debris removal expense together exhaust the limit of insurance
- the max amount collectible for debris removal ( 25% of the loss plus the deductible ) is not enough to cover the debris removal expense
