Who is Eligible for Businessowner Policies?
Objective 1
Objective 1
Small businesses are often called the life blood of cities - even the backbone of the United States. Small businesses constitute _____% of all the business in the United States.
What is...
99%
The chapter talks about four different exclusions for the Businessowners policy (BOP), what are these exclusions?
What is...
- Work Comp
- Professional Liability
- Health/Disability Coverage
- Commercial Auto
What is the definition of a building according to the BOP?
What is...
As defined in the BPP, the building described in the policy; the building’s completed additions; fixtures, including outdoor fixtures; permanently installed machinery and equipment; and personal property owned by the insured that is used to maintain or service the building or its premises.
Explain what the medical expense coverage is in the BOP.
What is...
Offers coverage for small, reasonable claims for eligible injured persons' (not employees') medical expenses, whether the insured is legally liable.
Businessowners policy (BOP) is...
What is...
A package policy that combines most of the property and liability coverages needed by small and medium-size businesses.
Which one of the following risk categories is generally eligible for coverage under a businessowners policy (BOP)?
A. Automobile dealers
B. Financial institutions
C. Bars and pubs
D. Office buildings
What is...
D. Office buildings
What are the 4 property loss exposures a Businessowners policy (BOP) will most likely cover?
What is...
- Buildings
- Business personal property
- Personal property of others
- Business income and extra expenses
Optional coverages and endorsements may be...
What is...
... available to fill some of the gaps in coverage.
What are the three liability loss exclusions talked about in the chapter?
What is...
- Liquor liability
- Intended injury
- Criminal acts
Supplementary payment is...
What is...
Various expenses the insurer agrees to pay under a liability insurance policy (in addition to the liability limits) for items such as premiums on bail bonds and appeal bonds, loss of the insured's earnings because of attendance at trials, and other reasonable expenses incurred by the insured at the insurer's request.
One videos and notes share different eligibility requirements and limitations in order for a business to applu for a BOP, name 4 out of 9 the coursework listed.
What is...
- Total square footage of floor plan
- Annual gross sales
- Building height/How many floors
- Number of units/seating capacity
- Business Type
- Receipts and payroll
- Equipment/cooking facilities
- Alcohol usage/integrated bars
- Seasonal operations
The BOP provides 3 major advantages that are talked about in the objective, these include...
What is...
- Fewer coverage gaps and duplicate coverage
- Reduce administrative costs
- Reduce adverse selection
The BOP provides coverage for ______ __ _______ that a business may have possession of, such as items being cleaned, altered, or repaired.
What is...
Property of others
The BOP imposes two distinct duties on the insurer during a liability claim, what are these two responsibilities?
What is...
- Pay damages on behalf of the insured
- Defend the insured against suits seeking covered damages
Adverse selection is...
What is...
The tendency of those most likely to experience loss to be the most likely to purchase insurance.
The businessowners policy (BOP) is designed for what kind of small to midsized businesses. (Hint, they list 6 different types of businesses)
What is...
- Apartment Buildings
- Office Buildings
- Contractors
- Small Businesses
- Restaurants
- Motels.
What are the 4 liability loss exposures a Businessowners policy (BOP) will most likely cover?
What is...
- Premises and operations liability
- Products and completed operations liability
- Contractual liability
- Personal and advertising injury liability
Name 4 out of 6 causes of loss exclusions that are stated in the BOP.
What is...
- Upgrades due to local ordinances
- Earthquakes
- Nuclear hazards
- The loss of utility services
- War
- Water Damage
Explain the BOP supplementary payments coverage extension.
What is...
Coverage for defense costs and other claims expenses the insurer agrees to pay in addition to the damages payable under the BOP liability coverage.
Business income coverage is...
What is...
Insurance that covers the reduction in an organization’s income when operations are interrupted by damage to property caused by a covered peril.
What are the 6 businesses NOT eligible for a BOP policy?
What is...
- Automobile businesses (dealer, repair shop, parking garages),
- Bars and pubs
- Most manufacturing firms
- One- or two-family dwellings other than multiple-unit garden apartment complexes
- Amusement parks, arcades, and bowling alleys
- Financial institutions.
The BOP often provide coverage for additional loss exposures, these includes. (Hint there are 4)
What is...
- Employee dishonesty
- Theft of money and securities
- Forgery and alteration
- Equipment breakdown
The definition of a building is not restricted to a structure with four walls and a roof... in addition to structures includes... (hint 4 points)
What is...
- Completed additions
- Fixtures, including outdoor fixtures such as lights
- Permanently installed equipment, such as heating and cooling systems or cooking equipment
- The insured's personal property, such as office equipment
For an insurer to be obligated to pay damages under a BOP liability claim, three conditions must be met, these are?
What is...
- Insured must be legally obligated to pay for damage
- Damages must result from bodily injury, property damage, or personal and advertising injury
- Policy must apply to occurrence
Prejudgment interest is...
What is...
Interest that may accrue on damages before a judgment has been rendered.