15.0 Businessowners Policy
Learning Objectives
15.1 Eligibility
A Businessowners Policy (BOP) is designed for small- to medium-sized businesses with lower-risk operations, unlike a Commercial Package Policy, which is intended for larger or more complex businesses. In general, businesses with annual gross sales over $6 million or that occupy more than 35,000 square feet are not eligible, although exceptions may apply. Eligibility also depends on factors such as the number of stories, type of business, and business operations, with specific requirements varying by insurer.
15.2 Section I – Property Coverages
Section I – Property provides the property coverage under the Businessowners Policy (BOP). The standard BOP is written on an open perils basis, covering all direct physical losses unless specifically excluded or limited. A named perils option is also available by endorsement.
15.3 Section I Additional Coverages
Additional Coverages
15.4 Section I Exclusions
The Businessowners Policy (BOP) excludes many of the same causes of loss found in other commercial property policies. Unless coverage is specifically provided elsewhere in the policy, losses resulting from the following are excluded:
15.5 Section I Limits
Limits of Insurance
15.6 Section I Loss and General Conditions
Section I of the Businessowners Policy (BOP) contains several common property conditions, including:
15.7 Section II – Liability Coverages
Section II of the Businessowners Policy (BOP) provides liability coverages that are similar to those found in a Commercial General Liability (CGL) policy.
15.8 Section II Exclusions
Exclusions Applicable to Business Liability Coverage
15.9 Section II – Who Is An Insured
Who qualifies as an insured depends on the type of named insured listed in the Declarations:
15.10 Section II Limits
Liability and Medical Expenses Limits of Insurance
15.11 Section II General Conditions
The following conditions apply to the coverages provided under Section II.
15.12 Section III – Common Policy Conditions
Cancellation
15.13 Selected Endorsements
Hired Auto and Non-owned Auto Liability Endorsement
Recap of Chapter Fifteen
A Businessowners Policy (BOP) combines property and liability coverages for small- to medium-sized businesses that do not have highly specialized operations. To qualify, a business may have up to $6 million in annual sales per location and occupy no more than 35,000 square feet.