Ch. 13 Businessowners Coverage Form

Liability and Medical Expenses General Conditions: Bankruptcy

Bankruptcy or insolvency of the insured does not relieve the insurer of its responsibilities under the policy.

Personal Advertising Injury

Caused by or at the direction of the insured with the knowledge that the act would violate the rights of others and inflict personal and advertising injury; knowledge of oral or written publication of material known to be false; offenses that took place before the beginning of the policy period; losses arising out of breach of contract, failure to conform to advertised quality, or the wrong price. Also excluded are injuries committed by an insured whose business is advertising, broadcasting, publishing, or telecasting.

The Named Perils endorsement: A Changes the open perils coverage to named perils coverage B Extends bodily injury and property damage liability to the use of any non-owned auto C Provides coverage for damage caused by the interruption of power to the insured premises D Excludes hired and non-owned auto liability coverage

Changes the open perils coverage to named perils coverage -The Named Perils endorsement provides named perils coverage in lieu of the open perils.

BOP Coverage Extensions (Section I) Newly Acquired or Constructed Property

Each building is insured for up to $250,000 for up to 30 days. Business personal property at each building is covered for up to $100,000 for up to 30 days.

Which of the following is not covered under the BOP? A Interruption of computer operations caused by a virus B Errors or Omissions C Business income D Electronic data valued at $10,000

Errors or OmissionsErrors or omissions are excluded from coverage under the BOP.

BOP Exclusions Applicable to Business Liability Coverage: (Section II Liability)

Expected or Intentional Injury Contractual Liability Liquor Liability Workers' Compensation and Similar Laws Employer's Liability Pollution Aircraft, Auto, or Watercraft Mobile Equipment - Transportation of mobile equipment War Professional Services Damage to Insured's Property Damage to Insured's Product Damage to Insured's Work Damage to Impaired Property or Property Not Physically Injured Recall of Products, Work, or Impaired Property Personal and Advertising Injury

Transfer of Your Rights and Duties under this Policy

Insured's rights and duties under this policy may not be transferred without insurer's written consent except in the case of death of an individual Named Insured.

Concealment, Misrepresentation and Fraud

Policy is void in any case of fraud by the insured as it relates to the policy.

Changes

The First Named Insured shown in the Declarations is authorized to make policy changes with the insurer's consent and only by written endorsement issued by the insurer.

BOP Additional Coverages Civil Authority

The coverage applies when civil authorities prohibit access to the described premises due to a covered loss that occurs within 1 mile of the insured's property. The coverage begins 72 hours after the action occurs and ends 4 consecutive weeks after the coverage begins.

Premiums

The first Named Insured shown in the Declarations: Is responsible for the payment of all premiums; and Will be the payee for any return premiums insurer pays.

BOP Coverage Extensions (Section I) Outdoor Property

The insured may extend the insurance provided by the policy to apply to their outdoor fences, radio and television antennas, signs (other than signs attached to buildings), trees, shrubs, and plants. The most the policy will pay is $2,500, but not more than $1000 for any one tree, shrub, or plant.

BOP Coverage Extensions (Section I) Valuable Papers and Records

The insured may extend the insurance that applies to Business Personal Property to apply to direct physical loss of valuable papers and records it owns or that are in its care, custody, or control up to $10,000 at the described premises, and up to $5,000 away from the described premises.

BOP Coverage Extensions (Section I) Personal Effects

The insured may extend the insurance that applies to Business Personal Property to apply to personal effects owned by the insured, the insured's officers, partners, managers, or employees up to $2,500 at each described premises.

BOP Additional Coverages Preservation of Property (Section I)

The policy will cover on an open perils basis, for up to 30 days, property while being moved or temporarily stored at another location to save and protect it from damage by a covered peril.

BOP Additional Coverages Business Income

The policy will pay for the actual loss sustained for a period of 12 consecutive months after the date of direct physical loss or damage. However, ordinary payroll expenses are paid only for 60 days following the direct physical loss or damage, unless a greater number of days is shown in the Declarations. This additional coverage is not subject to the limits of insurance in Section I.

BOP Optional Coverages (Section I-Property) Employee Dishonesty

This coverage provides insurance for Business Personal Property, including money and securities, resulting from dishonest acts committed by any of the insured's employees acting alone or in collusion with other persons.

BOP Optional Coverages (Section I-Property) Outdoor Signs

This coverage provides insurance for direct physical loss (open perils) of, or damage to, all outdoor signs at the described premises.

BOP Optional Coverages (Section I-Property) Equipment Breakdown

This coverage provides insurance for equipment breakdown to pressure, mechanical, or electrical machinery and equipment owned by the insured or in the insured's care, custody, or control, and at the described premises.

Named Perils Endorsement (BP 10 09)

This endorsement provides named perils coverage in lieu of the open perils coverage that is provided automatically by the Businessowners Coverage Form. The endorsement limits coverage to 12 listed causes of loss.

Liability and Medical Expenses General Conditions:

When the policy is certified as proof of financial responsibility for the future under the provisions of any motor vehicle financial responsibility law, the insurance provided by the policy will comply with that law.

Section I Property BOP Coverage

-provides details of covered property, property not covered, additional coverages, coverage extensions, exclusions, limits of insurance, deductibles, property conditions, property general conditions, property definitions, and optional coverages - if shown on the declarations with a premium charge.

The Additional Coverage for business income pays for the actual loss of business income for up to how many months after the date of the direct physical damage to the property? A 12 B 18 C 24 D 6

12 -Ordinary payroll expenses, however, are only paid for 60 days following the loss unless the insured requests additional time and it is stated in the Declarations.

Under Section II - Liability & Medical Expenses, who is covered for medical expenses after being injured while at an insured premises? A A person taking part in athletics B A client of the insured C A cleaning crew hired by the insured D A tenant of the insured

A client of the insured -A person taking part in athletics, renters and a person hired to do work on behalf of an insured are excluded.

Each of the following individuals is an insured under the BOP, except: A The insured's legal representative if the insured dies B A sole proprietor's minor child C The manager of a limited liability company D Any person acting as the named insured's real estate manager

A sole proprietor's minor child -The named insured, executive officers and directors, and stockholders of any covered organization other than a partnership, joint venture, or limited liability company are covered.

Products-completed operations aggregate

All claims for bodily injury, and property damage that occur during the policy period and fall within the products completed operations hazard; aggregate limit is twice the Liability and Medical Expenses limit shown in the Declarations. -The aggregate limits do not apply to losses that involve Damages to Premises Rented to You.

BOP Additional Coverages Collapse

Collapse is defined as an abrupt falling down or caving in of a building or any part of a building with the result that the building or part of the building cannot be occupied for its intended purpose.

The BOP may be cancelled by which of the following insureds? A Any partner B Owner C First named insured D Named insured

First named insured -The First Named Insured may cancel the policy by mailing or delivering an advance notice of cancellation to the insurer.

BOP Additional Coverages Interruption of Computer Operations

For interruptions caused by the specified causes of loss and certain computer viruses - Up to $10,000.

Transfer of Rights of Recovery Against Others to Us

If any person or organization for whom the insurer makes payment under the policy has rights to recover damages from another, those rights are transferred to insurer to the extent of insurer's payment.

Resumption of Operations

If the insured is able to use damaged or undamaged property to resume operations after a covered business income loss—and doesn't do so—the policy will reduce the amount of the business income loss payment to the extent of the resumption of operations that should have been made.

Liability and Medical Expenses General Conditions: Separation of Insureds

Insurance applies as if each named insured were the only named insured, and separately to each insured against whom claim is made or suit is brought

Examination of Your Books and Records

Insurer may examine and audit the books and records as they relate to the policy during the policy period and up to 3 years afterward.

Each of the following is a characteristic of an eligible risk for the BOP, except: A Small business B Manufacturing occupancy C Apartment building D Building occupies 20,000 square feet of area

Manufacturing occupancy -Other ineligible risks include automobile repair or service stations, dealers, garages, places of amusement, and restaurants and bars that do not meet the restaurant eligibility rules.

Liability and Medical Expenses General Conditions: Legal Action Against the Insurer

No person or organization has a right under the policy to sue the insurer unless all terms of the policy have been fully complied with.

Which covered causes of loss form is used for the BOP? A Actual Cash Value B Replacement Cost C Stated Value D Open perils

Open perils -Unless the loss is excluded, the loss to a covered building and business property is the risk of direct physical loss, or open perils.

BOP Exclusions (Section I)

Ordinance or law, Earth movement, Governmental action, Nuclear hazard, Utility failure that occurs off-premises, War and military action, Water, Certain computer-related losses relating to failure, malfunction, or inadequacy of computer hardware, software, operating systems, and networks Fungi, wet or dry rot, Pollution, Neglect, Collapse, Wear and tear Equipment breakdown, Electrical apparatus, Virus or bacteria, Smoke, vapor or gas from agricultural smudging or industrial operations, Artificially generated electrical current, Loss of use, loss of market or delay, Steam apparatus, Dishonesty of an insured, False pretenses, Exposed property, Errors or omissions, Installation, testing, or repair, Electrical disturbance, Negligent work, Loss or damage to products resulting from errors and omissions during production

Section I - Property of the BOP covers which of the following types of property? A Accounts, bills, and other evidences of debt B Pet animals C Outdoor furniture D Land

Outdoor furniture -The BOP also covers buildings and business personal property located in or on or within 100 feet of the covered building.

What is the method of property valuation used under the Businessowners Policy (BOP)?

Replacement Cost -Replacement cost is the valuation method for the building and business personal property as long as the limit of insurance for lost or damaged property at the time of the loss is at least 80% of the full replacement cost of the property.

BOP Covered Causes of Loss (Section I)

Risk of direct physical loss (open peril), unless the loss is excluded.

BOP (Bussinessowners Policy)

Section I: Property Section II: Liability Coverage Section III: Common Policy Conditions

Each of the following standard limitations under the BOP's Section I - Property limits of insurance is correct, except: A $1,000 per outdoor sign attached to the building per occurrence B The Business Personal Property limit will increase by 25% yearly, subject to the average monthly values of the past year C A loss or damage occurrence is limited to the applicable limit of insurance shown in the Declarations D The Buildings limit of insurance will automatically increase by 10% each year

The Buildings limit of insurance will automatically increase by 10% each year -The limit of insurance for buildings will automatically increase by 8%.

Section III - Common Policy Conditions Cancellation

The First Named Insured shown in the Declarations may cancel this policy by mailing or delivering to the insurer advance written notice of cancellation. The insurer may cancel the policy by mailing or delivering to the first Named Insured written notice of cancellation at least: 5 days before the effective date of cancellation if any of the following conditions exists. The building has been vacant or unoccupied 60 or more consecutive days. After damage by a covered cause of loss, if permanent repairs to the building: Have not started, and Have not been contracted for within 30 days of initial payment of loss. 10 days before the date of cancellation if the insurer cancels for non-payment of premium. 30 days before the date of cancellation if the insurer cancels for any other reason. Notice must be mailed to the last known mailing address. All requirements of notice as contained in the policy may be superseded by state law.

Hired Auto and Non-Owned Auto Liability Endorsement (BP 04 04)

The Hired and Non-owned Auto Liability endorsement is added to the BOP to provide business auto coverage when the insured business doesn't own autos. This endorsement extends the BOP's business liability coverage for bodily injury and property damage for: The maintenance or use of a hired auto by the insured, or its employees, in the insured's business, and the use of any non-owned auto in the insured's business by any person. The endorsement amends certain exclusions in the BOP with respect to liability. Specifically, it removes some exclusions and replaces them with others. Essentially, this endorsement adds business auto coverage to the BOP, but only for vehicles the insured hires, leases, rents, borrows, and doesn't own. Hired auto liability coverage applies to autos leased, hired, or borrowed by the named insured, such as the rental of a vehicle while traveling on company business. Non-owned auto liability coverage applies only to those non-owned autos used by persons other than the named insured in the course of the named insured's business. For example, an employee using his/her own vehicle in the course of the insured's business would have to rely on his/ her own auto insurance for liability coverage.

BOP Coverage Extensions (Section I) Accounts Receivable

The insured may extend the insurance that applies to Business Personal Property to apply to the direct physical loss of records of accounts receivable up to $10,000 at the described premises, and up to $5,000 away from the described premises.

Inspection and Surveys

The insurer has the right, but is not obligated, to make inspections and surveys at any time. Inspections and surveys don't warrant that conditions are safe or comply with law.

BOP Optional Coverages (Section I-Property) Money and Securities

This coverage provides insurance for money and securities used in the insured's business against theft, disappearance, or destruction while: at a bank or savings institution; within the living quarters of the insured, or the living quarters of partners, managers, or employees of the insured; at the described premises; or in transit between any of these places.

BOP Additional Coverages Electronic Data

Up to $10,000.

BOP Medical Expenses (Section II Liability Coverages)

-Covers necessary medical expenses for bodily injury, caused by an accident, occurring on the premises the insured owns or rents, or due to the insured's operations. The accident must take place in the coverage territory and during the policy period. -The expenses must be incurred within 1 year of the date of the accident and payments are made regardless of fault. The insurer will pay reasonable expenses for: First aid administered at the time of an accident. Necessary medical, surgical, x-ray, and dental services, including prosthetic devices. Necessary ambulance, hospital, professional nursing, and funeral services.

BOP Deductibles (Section I)

-Once a loss exceeds the deductible shown in the Declarations, the policy pays the amount of the loss or damage in excess of the deductible, up to the applicable limit of insurance shown on the Declarations under Section I - Property. -The standard deductible is $500 and the insured may choose a higher or lower deductible. Other special deductibles may apply to Optional Coverages, if any are chosen. -No deductible applies to the following Additional Coverages: Fire Department Service Charge, Business Income, Extra Expense, and Fire Extinguisher Recharge Systems.

Liability and Medical Expenses Limits of Insurance

-The Liability and Medical Expenses limit shown in the Declarations applies per occurrence for bodily injury, property damage, and medical expenses, and per person or organization for personal injury and advertising injury - The Medical Expenses limit shown in the Declarations is the most the insurer will pay for all medical expenses sustained by any one person. -The Damage to Premises Rented to You limit shown in the Declarations applies to damage arising out of any one fire or explosion for property damage caused to premises rented to the insured or temporarily occupied by the insured with the permission of the owner. -Two aggregate limits apply: Products-completed operations aggregate & General Aggregate

BOP Limits of Insurance (Section I)

-The most the policy will pay for loss or damage, in any one occurrence, is the applicable limit of insurance under Section I - Property, as shown in the Declarations. -The most the policy will pay for damage to outdoor signs attached to the building is $1,000 per sign per occurrence. -The limit of insurance for Buildings will automatically increase by 8% unless a different percentage is shown in the Declarations. -An automatic seasonal increase applies to the limit of insurance for business personal property. If no percentage is shown on the declaration, the policy automatically provides a limit increase of 25% for seasonal fluctuations in value. This seasonal increase only applies if the limit shown for business personal property in the Declarations is at least 100% of the insured's average monthly values during the 12 months immediately preceding the loss.

The types of businesses eligible for a BOP include:

-apartment building (any size) -office building (dont exceed 6 stories or contain more than 100,000 sq ft in total area) -service or processing (bakeries, dry cleaners, funeral homes, print shops) -wholesalers(providing no more than 25% of annual gross sales are derived from retail ops and no more than 25% of total floor area is open to public) -contractors (as long as total payroll does not exceed 300,000 and no more than 10% of total annual gross sales comes from subcontracted work) -restaurants (fast food places & others with limited cooking) -motels (limited to 3 stories in height, motel may not be seasonal and may not contain bar/cocktail lounge) -convenience food/gasoline stores (total gross from sale of gas must not exceed 75% of total gross receipts, auto service repair, car wash ops, and propane tank filling ops are not allowed) -self storage facilities (limited to 2 stories in height, cold storage & storage of industrial materials do not qualify) -condominium commercial unit owners (mercantile, wholesale, service or processing, and contracting companies)

The insured may extend up to how much of the insurance for business personal property to property located off-premises? A $1,000 B $10,000 C $2,000 D $7,500

10,000 -This Coverage Extension applies to the business personal property while in transit or at a property not owned, leased, or operated by the insured.

Property Not Covered on BOP

Aircraft, automobiles, motor trucks, and other vehicles subject to motor vehicle registration. Money or securities, except as provided in the Money and Securities Optional Coverage or Employee Dishonesty Optional Coverage. Land, including land on which the property is located, water, growing crops, or lawns. Outdoor fences, radio or television antennas, satellite dishes, and their lead-in wiring, masts or towers, signs (other than signs attached to the building), trees, shrubs, or plants. Watercraft and associated equipment, while afloat. Accounts, bills, food stamps, other evidence of debt, accounts receivable or valuable papers and records, except as otherwise provided in the policy. Computers that are permanently installed or designed to be permanently installed in any aircraft, watercraft, motor truck, or other vehicle subject to motor vehicle registration, except while held as stock. Electronic data other than as provided under additional coverages. Animals, unless held for sale or being boarded for others by the insured, or, if owned by the insured as stock while inside the building. Property transferred per unauthorized instructions is not covered.

General aggregate

All losses, except those that fall within the products-completed operations hazard, including medical expenses personal injury and advertising injury offenses committed; aggregate limit is twice the Liability and Medical Expenses limit shown in the Declarations. -The aggregate limits do not apply to losses that involve Damages to Premises Rented to You.

Ineligible Risks

Automobile repair and service stations; automobile, mobile home, and motorcycle dealers; and parking lots or garages are ineligible, unless these operations are incidental to an otherwise eligible risk Restaurants, bars, and grills are ineligible (unless fast-food restuarant or others with limited cooking) Places of amusement are not eligible Manufacturers are ineligible

Covered Property on BOP

Buildings and structures at the premises described in the Declarations, including: Completed additions. Fixtures, including outdoor fixtures. Permanently installed machinery and equipment. The insured's personal property in apartments, rooms, or common areas furnished by the insured as landlord. Personal property owned by the insured that is used to maintain or service the buildings or structures, or the premises, including: firefighting equipment; outdoor furniture; floor coverings; and appliances used for refrigerating, ventilating, cooking, dishwashing, or laundering. Outdoor furniture. If not covered by other insurance: additions under construction, alterations and repairs to the buildings or structures; materials, equipment, supplies, and temporary structures, on or within 100 feet of the described premises.

Covered Property on BOP pt 2

Business Personal Property located in or on the buildings at the described premises or in the open (or in a vehicle) within 100 feet of the premises, including: Property the insured owns that is used in the insured's business. Property of others that is in the insured's care, custody, or control. Tenant's improvements and betterments, which are fixtures, alterations, installations, or additions made a part of the building or structure that the tenant occupies but does not own; including structures that the tenant acquired or made at their expense but cannot legally remove. Leased personal property for which the insured has a legal responsibility to insure.

Liberalization

If the insurer adopts any revision that would broaden coverage under the policy without additional premium within 45 days prior to, or during, the policy period, the broadened coverage will immediately apply to the policy.

Other Insurance

If there is other insurance in place to cover the same loss or damage, the insurer will only pay for the amount of covered loss or damage in excess of the amount due from that other insurance. Business Liability Coverage is excess over any other insurance that insures for direct physical loss or damage.

Insurance under Two or More Coverages

If two or more insurance policies apply to the same loss or damage, the policy will not pay more than the actual amount of loss.

Liability and Medical Expenses Definitions

Section II - Liability of the Businessowners Coverage Form contains a list of definitions that clarify policy language. The definitions in this section are similar to those found in the CGL and CPP. It's important to remember that the definition of "your product" includes: Warranties and representations relating to the fitness of the product. Warnings and instructions for safe use of the product. Containers for the product.

BOP Loss and General Conditions (Section I-Property)

The BOP will make loss payment, at the insurer's option, in one of the following ways after a property loss: Payment for the value of the lost or damaged property. Payment for the cost to repair or replace the lost or damaged property. Take all or part of the property at an agreed or appraised value. Repair, rebuild, or replace damaged property with property of like kind and quality. -No loss payment will exceed the insured's financial interest in covered property. -Coverage is provided for a party wall, which is a wall that separates adjoining units or buildings owned by different parties. The insured is paid a proportion of the loss based on the insured's proportion of the wall to the adjoining owner's proportion of the wall. If the other owner does not repair his proportion of the wall, the insurance will pay for the entire wall and subrogate against the adjoining owner. -Loss settlement includes property valuation at replacement value for most types of covered property unless the declarations page shows loss settlement is on an actual cash value basis. Although a true coinsurance provision is NOT included in the BOP, an insurance-to-value provision is included. This means that in the event of a partial loss, if property is insured for less than 80% of its replacement value, a penalty will be applied to the loss payment.

BOP Coverage Extensions (Section I) Personal Property Off Premises

The insured may extend up to $10,000 of the insurance that applies to Business Personal Property to property while it is in the course of transit or at premises the insured does not own, lease, or operate. This extension does NOT cover money, securities, valuable papers and records, or accounts receivables.

Liability and Medical Expenses General Conditions: Duties in the Event of Occurrence, Offense, Claim, or Suit

The insurer must be notified, as soon as practical, of an occurrence or an offense that may result in a claim.

BOP Limitations (Section I)

The insurer will not pay for loss or damage to property that is missing, where the only evidence of loss or damage is a shortage discovered when taking inventory, or other instances where there is no physical evidence to show what happened to the property. For loss or damage by theft, the following types of property are covered only up to $2,500 for: Furs, fur garments, and garments trimmed with fur. Jewelry, watches, pearls, precious and semi-precious stones, bullion, gold, silver, platinum, and other precious alloys or metals. Patterns, dies, molds, and forms. No coverage is provided for loss to steam and hot water boilers, pipes, engines, or turbines if it is caused by an equipment breakdown, other than an explosion. Loss to the interior of a building or structure is not covered unless the exterior also sustains damage. Animals and fragile articles are only covered if loss is caused by the "specified causes of loss" or glass breakage.

BOP Additional Coverages Glass Expenses

The policy will pay for the expenses incurred to install temporary plates, board up openings, and to remove or replace obstructions when repairing or replacing glass that is part of a building.

BOP Additional Coverages Extra Expense

The policy will pay for the necessary extra expenses the insured incurs for up to 12 consecutive months after the date of direct physical loss or damage. This additional coverage is not subject to the limits of insurance in Section I.

BOP Additional Coverages Business Income from Dependent Properties

The policy will pay the actual loss of business income (up to $5,000) sustained by the insured due to physical loss or damage at the premises of a dependent property caused by or resulting from a covered cause of loss.

BOP Additional Coverages Water Damage, Other Liquids, Powder, or Molten Material Damage

The policy will pay the cost to tear out and replace any part of the building or structure to repair damage to the system or appliance from which the water or other substance escaped.

BOP Additional Coverages Money Orders and Counterfeit Paper Currency

The policy will pay up to $1,000 for any one loss resulting from the insured having accepted, in good faith, money orders issued by the post office, bank, or counterfeit paper currency during the regular course of business.

BOP Additional Coverages Pollution Cleanup and Removal

The policy will pay up to $10,000 per location for pollution cleanup and removal due to a covered loss occurring during each separate 12 month period.

BOP Additional Coverages Increased Cost of Construction

The policy will pay up to $10,000, for each building, for the increased costs incurred to comply with enforcement of an ordinance or law that regulates the repair, rebuilding, or replacement of damaged parts of a covered building following a covered loss.

BOP Additional Coverages Forgery or Alteration

The policy will pay up to $2,500 for any one loss resulting directly from forgery or alteration of any check or similar instrument that the insured, or someone impersonating the insured, has issued.

BOP Additional Coverages Fire Department Service Charge

The policy will pay up to $2,500 for the insured's liability for fire department service charges assumed by contract or agreement prior to loss, or required by local ordinance.

BOP Additional Coverages Debris Removal (Section I)

The policy will pay up to an additional $10,000 for debris removal expense, for each location, in any one occurrence of physical loss or damage to covered property if the total of the actual debris removal expense plus the amount paid for the direct physical loss or damage exceeds the limit of insurance on the covered property.

Protective Safeguards Endorsement (BP 04 03)

This endorsement specifies that the insured is required to maintain the protective safeguards listed in this endorsement (i.e. automatic sprinkler systems, automatic fire alarms, and/or security services). The policy will not pay for loss or damage caused by fire if the insured had prior knowledge that the safeguards were suspended or impaired and failed to notify the insurer, or failed to maintain any protective device in working order. The insured must notify the insurer if the automatic sprinkler system is off for more than 48 hours.

Earthquake Endorsement (BP 10 03)

This endorsement, when added to the policy, extends coverage to include earthquake and volcanic eruption losses. The coverage continues for up to 168 hours after policy expiration if an earthquake or volcanic eruption began before the policy expired.

The Utility Services - Time Element Endorsement (BP 04 57)

This provides coverage at the limits of liability shown on the endorsement for loss of Business Income or Extra Expenses if the interruption of water supply services, communication, or power causes a direct loss to covered property. Of course, damage must be caused by a covered peril. No coverage is provided under this endorsement for loss to electronic data.

The Utility Services - Direct Damage Endorsement (BP 04 56)

This provides coverage at the limits of liability shown on the endorsement if the interruption of water, communication, or power supply services causes a direct loss to covered property. Of course, damage must be caused by a covered peril. No coverage is provided under this endorsement for loss to electronic data.

Who is an Insured

Those that are designated in the Declarations as: A sole proprietorship or Individual - Named insured and his/her spouse. A partnership or joint venture - The named insured, members, partners, and their spouses. A limited liability company - Named insured, members, and managers. An organization other than a partnership, joint venture, or limited liability company. The named insured, executive officers and directors, and stockholders. A trust - Named insured and its trustees with respect to trustee duties.

Exclusions Applicable to Medical Expenses Coverage:

To any insured, except volunteer workers. To a person hired to do work for, or on behalf of, any insured or tenant of any insured. To any person, if benefits for the bodily injury are payable, or if benefits must be provided under Workers' Compensation. To a person injured on that part of the premises the insured owns or rents and that the person normally occupies. To a person injured while taking part in athletics. To bodily injury incurred within the products/completed operations hazard. To bodily injury excluded under Business Liability Coverage. Due to war, including civil war, insurrection, rebellion, or revolution.

Section II - Liability Coverages Business Liability

his section provides details of the liability and medical expenses coverages, exclusions, who is an insured, limits of insurance, liability general conditions, and definitions. Liability coverage is provided for sums for which the insured becomes legally liable to pay as damages for bodily injury, property damage, or personal injury and advertising injury, including liability assumed under an insured contract. Coverage applies to: Bodily injury or property damage caused by an occurrence that takes place in the coverage territory during the policy period. Personal injury and advertising injury caused by an offense arising out of the insured's business, but only if the offense takes place in the coverage territory during the policy period. Bodily injury includes damages claimed by any person or organization for care, loss of services, or death resulting at any time from the bodily injury. The coverage also includes defense. Coverage Extension - Supplementary Payments. In addition to the limit of insurance for Section II - Liability, the insurer will pay: All expenses incurred by the insurer. Up to $250 for the cost of bail bonds, required because of accidents or traffic violations arising out of the use of any vehicle to which coverage for bodily injury applies. The cost of bonds to release attachments, but only for bond amounts within the limit of insurance. All reasonable expenses incurred by the insured, at the request of the insurer, including actual loss of earnings for up to $250 per day for time off work. All costs taxed against the insured in a suit. Prejudgment interest awarded against the insured on the part of any judgment. All interest on the full amount of any judgment that accrues before the judgment is paid.

BOP Additional Coverages Limited Fungi, Wet rot, and dry rot

up to 15,000

Loss & General Conditions BOP (Section I -Property) Vacancy Provision

vacancy provision of the BOP is the same as that found in the commercial building and personal property coverage form. If the insured is a tenant, the rented unit is considered vacant if it doesn't contain enough personal property for the insured to conduct customary operations. If the insured is a building owner or the general lessee of an entire building, the building is considered vacant if less than 31% of building's square footage is not rented to lessees, or used by the building owner, to conduct customary operations. Buildings under construction or renovation are NOT vacant. If the building where a loss occurs has been vacant for 60 or more consecutive days before a loss, NO coverage is provided for losses of the following types: vandalism, sprinkler leakage (unless the system was protected against freezing), building glass breakage, water damage, theft, or attempted theft. Note: The vacant building doesn't have to be the insured's building; it can be the building where covered property is located at the time of loss. If a loss caused by other perils occurs in or to a vacant building, a penalty of 15% will be applied to the loss payment.