1. What is a Business Owners Policy (BOP)?

They usually are targeted at small and medium-sized businesses. This assembles the basic coverages required by a business owner in one bundle.

2. What are the features of a BOP Policy?

Property Liability, Business Income, and General Liability

3. What is the method of valuation on building and business personal property?

Replacement Cost / 80% or more of the full replacement cost of the property

4. How long is the "Period of Restoration" following a covered direct loss?

12 Consecutive Months, Restoration begins 72 hours after the time of direct physical loss & ends when the task is completed or business starts at a new permanent location

5. What makes a business BOP eligible?

Business has to generate sales over $6million or that occupy more than 35,000 square feet of space

6. What types of Businesses are BOP Eligible?

Apartment buildings, office buildings (6 stories or lower/ 100.000 sq ft.), Service, Processing, Wholesaler, Contractor, Restaurant (Fast Food), Motel (3 Stories or lower), Convenience Store/Gasoline Store, Self Storage

7. What type of Businesses are not BOP Eligible?

Auto Repair/Service Station, Restaurant (Not Fast Food), Place of Amusement, Manufacturers

8. What is covered in Section 1 of the BOP?

Buildings & Structures at the premises described in the dec, business personal property located in or on the building at the described premises or in the open (or vehicle) within 100 ft of the premises, leased personal property

9. What is the ISO?

Insurance Service Office - Provides rating services by filling out an ISO Form

10. What are some coverage extensions in the BOP?

Newly acquired/Constructed Property, Personal Property off Premises, Outdoor Property, Personal Effects, Valuable Paper & Records, Accounts Receivable, Exclusions

11. What is Business Income Extra Expense?

Loss of income and continuing expenses

12. What are Additional Expenses?

Any expense needed to not allow business income loss (Example - Extra Space)

13. What is Liability?

Bodily Injury & Property Damage through a 3rd party

14. What is Advertising Liability?

Publisher, getting sued for writing something (Slander, Defamation of Character, Ruin Someone)

15. What is Products Liability?

Bodily injury and property damage from your product

16. What is Product Completed Operations?

Completed Job and someone gets injured

17. What is Medical Expense?

Good will coverage, bodily injury (Whether or not legally liable), To avoid small claims and lawsuits

18. What makes you Dwelling Program Eligible?

Has to have Residential dwelling purposes & can't have more than 4 dwelling units or more than 5 roomers or boarders

19. What are the dwelling coverage forms?

DP1 (Basic) , DP2 (Broad), and DP3 (Special)

20. What are the covered perils under a DP1?

Fire, lightning, explosion, wind & hail, smoke, aircraft, riot & looting, vandalism, sprinkler leakage, sinkhole collapse, volcano/lava

21. What is the valuation on a DP1?

Covers losses at Actual Cash Value (ACV)

22. What are the covered perils under a DP2?

Fire, Lightning, Internal & External Explosion, Windstorm & Hail, Civil Commotion, Smoke, Aircraft & Vehicles, Volcanic Eruption, Riot, Vandalism & Malicious Mischief, Burglary Damage, Weight of Ice & Snow, Glass Breakage, Accidental Discharge or Overflow of Water or Steam, Falling Objects, Freezing of Pipes, Electrical Damage, Collapse, Tearing Apart, Cracking, Burning, Bulging

23. What is the valuation on a DP2?

Covers losses at Replacement Cost (RPC)

24. What is the personal property valuation on a DP2?

Covers losses at Actual Cash Value (ACV)

25. What are the covered perils under a DP3?

Open Perils Coverage (Only doesn't cover excluded)

26. What are the excluded perils of a DP3?

Ordinance or Law, Earth Movement, Water Damage, Power Failure, Neglect, War, Nuclear Hazard, Intentional Loss, Governmental Action, Mold

27. What is the valuation on a DP3?

Covers losses at Replacement Cost (RPC)

28. What is the Dwelling (A) Coverage?

Dwelling

29. What is the Dwelling (B) Coverage?

Other Structures

30. What is the Dwelling (C) Coverage?

Personal Property