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4 Cards in this Set
- Front
- Back
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Describe a Business Owners Policy (BOP) |
*used to fit the needs of small to medium business with a low exposure to loss *PREPACKAGED POLICY THAT CONTAINS BOTH PROPERTY AND LIABILITY *ELIGIBLE RISKS: -office buildings not exceeding 6 stories or 100,000 total floor area -Apts or condos not exceedin 6 stories in height or 60 units -mechantile, processing, and service establishments if total floor area of the buildign does not exceed 25,000 square ft -restaurants limited to fast food types up to 7,500 sq ft -conveinence stores w/gas pumps but gas sales limited to 50% (no auto service, auto washing, restaurant, or propane/kerosene filing) |
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What Risks are NOT ELIGIBLE for a BOP |
*Auto sales and servicing operations *Manufacturing Operations *Places of Amusement *Household Personal Property *1/2 Family dwellings *Financial institutions |
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Describe the 2 BOP Coverage Forms |
*Standard BOP Form- Covers named perils such as Fire, lighning, explosion, WHARVES, V&MM , and transporation (which covers loss or damage to covered property in the course of transit
*Special BOP- Coverage is covered on an Open Peril basis unless excluded
*Includes 2 provisions that pertain to automatic increase in coverage: 1. Building Limit-Automatic Increase (inflation coverage) the limit of the insurance will increase automatically by the % shown on the declarations 2. Business PErsonal Property Limit-Peak Season Coverage-the limit for business personal property will automatically increase by 25% for seasonal fluctuations |
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What are some optional coverages that can be added |
1. Outdoor Signs 2. Money and Securities 3. Employee Dishonesty 4. Mechanical Breakdown
*Hired Auto and Non-Owned Auto Liabiltiy Endorsement- provides coverage for liability arising out of the use of a hired or non-owned auto (Hire autos are the autos that the insured leases, hires or borrows, but used in the business) Can only be added to the BOP if the insured does not have a Commericial Auto Policy |
