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19 Cards in this Set

  • Front
  • Back

Business Owners Policies (BOPs)

Insure eligible small to midsize businesses against most of their property and liability loss exposures

What major loss exposure is not covered by BOP? What is an exception?

Doesnt cover Commercial auto for intended autos

DOES provide hired and non owned auto coverage

What 2 criteria are BOP eligibility rules based on?

1. Business size

2. Complexity of loss exposures

What are the limits of business size for BOPs?

35,000 sq ft or $6 million in annual gross sales at each location

6 Variables in the BOP rating


Construction type

Public fire protection


Sprinkler presence


6 Major Property Differences between BOP and ISO Commercial Property Coverage

Covered COL and Valuations provisions

No coinsurance

Less property not covered

Automatic seasonal increase provision

Business income and extra expense coverage included

Other property coverages

2 Versions of BOP coverages

Named Perils

Special Form (default)

Standard valuations for BOP and BPP

BOP - replacement cost


Automatic Seasonal Increase Provision

Provided an insured carries 100% of its average monthly person all property value for 12 months preceding the loss, the business personal property limit automatically increases by 25%

How is business income and extra expense included for BOPs and commercial package policies?

BOPs - included automatically

Commercial package - separate form

Dependent property coverage

Insures against a business income loss sustained because of physical loss/damage by a covered COL at the premises of a dependent property not in insured's possession

Ex: "anchor" store in a shopping mall

3 types of limits for both BOPs and CGLs

Each Occurrence,

General Aggregate,

Products/Completed Operations Aggregate

General Aggregate limit of BOPs

2x each occurrence limit,

Max $2 mil/occurrence

Products/Completed Operations Aggregate of BOPs

Equal to Each Occurrence limit

A major difference between BOP and CGL professional liability coverage

BOPs can be endorsed to cover professional liability exposures of specified insureds

How do ISO farm insurance forms accommodate both family operated and agribusiness farm coverage?

Family operated - include from covering residential property

Agribusiness - Farm Dwelling form omitted

4 parts to Farm Property forms

A - Dwellings

B - Other private structures appurtenant to dwellings

C - Household personal property

D - Loss of use

What 2 extra coverages are in the Farm Property - Farm Personal Property Coverage Form?

E - Scheduled farm personal property

F - Unscheduled farm personal property

6 Main differences between BOP and CGL Coverage Forms

COL in BOP offered on broad or special form,

Replacement cost valuation for BOP,

Insurance to value requirements or no coinsurance,

Fewer items on property not covered provisions,

Automatic seasonal increase,

Business income and extra expense coverage automatically included with no dollar limit