Characteristics and purpose
A trade or occupation that the insured engages in fulltime or part-time. A BOP will provide liability and property damage coverage
Businessowners Sections I – Property
Coverage
Business personal property will include property of the names insured inside the building or within 100 feet of the property. Most policies will be on an open-peril’s basis.
Building is covered and will include all permanently attached equipment. Will also include additions or alterations.
There may also be coverage for the property of others in the care, custody and control of the names insured.
Exclusions
Limits of Insurance
The amount that the insurer will pay. Will be listed on the declaration page
Deductibles
The amount that must be met before the insurance company will pay. It will be listed on the declarations page
Loss Conditions
General Conditions
Definitions
Businessowners Section III – Common Policy Conditions
Selected Endorsements
Protective safeguards
Utility Services – Direct Damage
Utility services- Time element
Business Owners (BOP) Liability
-Liability and the exclusions in a BOP is the same as the CGL Policy. All the limits are the same as well. One important concept for a BOP is all BOP claims are set on an occurrence basis and the limits are small and predetermined. The limits can only be $300,000, $500,000, $1,000,000 or $2,000,000. The BOP will cover bodily injury, property damage, personal injury, and advertising injury.
-The exclusions for a BOP are the same as what’s listed for the CPP.
-The BOP will have optional coverage’s as well. Outdoor signs, Money and Securities, Employee Dishonesty, and Mechanical Breakdown. These are the same coverage’s we discussed in previous chapters.
-The first named insured has all the rights just like all other commercial policies. There are also two conditions when a loss is sustained under the BOP Policy, a defense provision and when there are two or more policies covering the same policy.
-Hired Automobile and Non-Owned Automobile endorsement allows the named insured the option of not having a BAP for their business. Any employee that is using their own vehicle for business use must have their own policy, but with this endorsement the named insured is covering the employees automobiles while being used for work purposes but only excess. The employee’s policy would be primary.
