Entity Basics
This is where you verify the legal name, status, and ownership of any entity before adding them to a policy.
“What is the Secretary of State business search portal?”
Under the BOP, this person or entity is considered “you.”
“Who is the Named Insured shown in the Declarations?”
A landlord with no ownership interest should be added in this way.
“What is as an Additional Insured using BP 04 02, BP 12 31, and BP 05 93?”
This form provides liability coverage for landlords as managers or lessors of premises.
“What is BP 04 02?”
A restaurant leases space from a landlord who wants to be insured. What is the proper action?
“What is to add the landlord as an Additional Insured?”
This filing type creates corporations, LLCs, and partnerships.
“What is a Secretary of State filing?”
Under the Liquor Liability form, coverage only applies to this specific entity.
“What is the entity holding the liquor license?”
An Additional Named Insured may only be added when this condition exists.
“What is common ownership and shared operations?”
This form extends property coverage to the landlord for the building only.
“What is BP 12 31?”
Two individuals create two different LLC's to operate their two location restaurant group. Both LLC's are jointly owned by these two individuals. Can you write both LLC's on one policy?
“What is to - Yes, but be sure to add Limitation of Coverage forms to BOP, Liquor and Umbrella."
Before adding an entity to a policy, you must confirm it is in this condition—active, not dissolved or revoked.
“What is active status?”
This type of entity is considered the insured employer under Workers’ Compensation.
“What is the Named Insured employer listed on the Information Page?”
You should not add an entity if their connection to the insured is only this.
“What is a marketing, signage, or brand-only relationship?”
This form protects a landlord’s rental income as the designated payee.
“What is BP 05 93?”
There are 5 Popeye's Chicken locations who have separate franchise owners using the same trade name. Should you write these under one policy or a separate policy for each separate franchise owner entity?
“What is write separate policies for each ownership group?”
This is the name that should appear as the Named Insured when a business operates under a DBA.
“What is the legal entity name, not the trade name?”
The Umbrella mirrors these entities from the underlying policies.
“Who are the Named Insureds listed on the underlying policies?”
Adding a landlord as a Named Insured creates this coverage issue.
“What is giving them full policy rights and Business Income payments?”
When adding an Additional Named Insured, you should also add one of these to restrict coverage to the described premises.
What is a Limitation of Coverage form
BP0412 for BOP
CG 28 06 for Liquor
CU 21 11 Umbrella
A landlord requests to be added to the tenant’s BOP, Liquor Liability, and Umbrella policies as a Named Insured. What is the correct underwriting response and reasoning?
“What is to decline Named Insured status and instead add BP 04 02, BP 12 31, BP 05 93, and CG 34 01 12 19, since these forms satisfy the lease while preventing unintended coverage expansion?”