Buisness Owner Policy Quiz

The Fire Department Service Charge benefit under a BOP is:

$1,000 is included as an additional amount of insurance for charges incurred from the fire department in the event of a fire.

Under the BOP's Newly Acquired or Constructed Property Coverage Extension, coverage for new business personal property is available up to:

$100,000 at each location. Up to $100,000 is available for newly acquired business personal property. Coverage will only apply for 30 days after the insured acquires the property or up to the end of the policy period, whichever first occurs.

What is the minimum single liability and medical expense coverage limit that applies collectively to bodily injury, property damage liability, and medical expenses under a BOP?

$300,000 per occurrence. BOP has a single liability and medical expense coverage limit that applies collectively to bodily injury and property damage liability, personal and advertising injury liability, and medical expenses. The minimum policy per occurence limit for Liability and Medical Expenses in a BOP is $300,000.

The businessowners policy standard deductible is:

$500

Personal property coverage under the Businessowners Policy includes property of the named insured located within how many feet of the insured business?

100 Property is covered when it is located within 100 feet of the described premises. It can be in a vehicle or out in the open within 100 feet of the premises.

Office buildings may be covered by a Businessowners Policy (BOP) if they do not exceed six stories in height and the total area does not exceed:

100,000 square feet Office buildings which do not exceed six stories and do not contain more than 100,000 square feet are eligible for a businessowners policy.

Processing and service risks can have no more than ____ of annual gross sales obtained from off-premises operations.

25% Processing and service risks can have no more than 25% of annual gross sales obtained from off-premises operations.

Under the Preservation Of Property coverage, business personal property moved to a new location to protect it from a covered peril is covered for how many days?

30 If it is necessary to move Covered Property from the insured location to preserve it from loss or damage by a covered peril, the company will pay for any direct physical loss of or damage to that property while it is being moved or temporarily stored at another location.To be covered, the loss or damage occurs within 30 days after the property is first moved.

Businessowners policies provide preservation of property additional coverage that protects property removed from the premises to protect it from loss. The coverage will apply at other locations while temporarily being stored for up to:

30 days Under the additional property coverages, the preservation of property additional coverage will cover property while removed from the premises to protect it from loss for up to 30 days.

The largest office building that may be eligible for a BOP is:

6 stories and 100,000 square feet. Office buildings that are no more than 6 stories high and contain no more than 100,000 square feet are eligible for a BOP.

Under a BOP,theft losses will not be paid after a covered building has been vacant for how many consecutive days?

60 If the building where loss or damage occurs has been vacant for more than 60 consecutive days before that loss or damage occurs, the company will not pay for any loss or damage caused by vandalism, sprinkler leakage, unless you have protected the system against freezing; building glass breakage, water damage,theft; or attempted theft.

Under a BOP, restaurants and grills are limited to what square footage and seating capacity?

7,500/75

All of the following businesses are not eligible for a businessowners policy (BOP) except: (X)Joe's Diner Joe's Auto Repair Joe's Bar & Grill Bank

A fast food restaurant would be a small, low-risk business.

Under a BOP, additional coverages and extensions of coverage are provided:

Additional coverages and extensions are provided automatically in a BOP.

Which of the following businesses would be eligible for a Businessowners policy? Hometown Motor Cars Jose's Bar & Grill (X)Rest Easy Motel Shorty's Auto Repair

Bars and pubs, auto repair, and auto dealers are typically excluded under a Businessowners Policy.

The insurance-to-value provision in a BOP is similar to what provision contained in many other types of policies?

Coinsurance clause The Businessowners Policy is usually written on a replacement cost basis without a coinsurance clause. However, many insurers felt that BOP insureds were not carrying sufficient amounts of insurance; therefore, an insurance-to-value provision was introduced that works similar to the coinsurance provision. This means that to collect full replacement cost, the insured must carry insurance equal to at least 80% of the insurable value of the covered property.

Condominium unit owners business personal property is covered for eligible occupancies. All of the following occupancies are eligible for coverage under a BOP EXCEPT: service. mercantile. (X)attorney. contractor.

Condominium unit owners business personal property used for eligible mercantile, wholesale, processing, service, office, or contractor occupancies are eligible for coverage under a BOP.

Which of the following would be covered under Part A of the BOP? Restroom fixtures & Carpet installed in offices

Coverage A covers the buildings and structures at the premise, including fixtures, permanently installed machinery/equipment.

Joe is leasing a building for his new diner. What type(s) of coverage under a BOP will Joe be eligible to purchase?

Coverage B If the insured owns the building and personal property, they are usually required to purchase coverage for both; however, if the insured owns the building but leases it to others, they can insure only the building.

Businessowners policies are commercial prepackaged policies designed for small businesses; however, certain classes of risks are not eligible for a BOP. Which of the following would be eligible for coverage under a Businessowners policy? Bar and grill Stock broker firm (X)Self-storage facility Amusement park

Self-storage facility Bars, banks, and amusement parks are among the risks that are excluded from coverage under the Businessowners policy.

Businessowners Liability coverage includes all of the following coverages EXCEPT: (X)professional liability risks. personal and advertising injury. property damage. bodily injury.

The Businessowners Liability form covers the insured's legal liability arising from bodily injury, property damage, and personal and advertising injury. Errors and omissions coverage is excluded.

All of the following are excluded under Coverage B of the BOP EXCEPT: Money and securities Electronic data (X)Tenant improvements and betterments Company car

The question is asking what is not excluded under the Coverage B of the BOP. Tenant's improvements and betterments are covered under Coverage B.

A BOP will not pay for damage to fragile items if broken, unless caused by a covered peril. All of the following are covered perils EXCEPT: (X)Theft Aircraft or vehicles Vandalism Fire

Theft is not one of the covered perils for fragile items

The BOP will NOT pay for loss or damage to all of the following EXCEPT: steam boilers caused by or resulting from any condition or event inside the equipment. steam pipes caused by or resulting from any condition or event inside the equipment. (X)steam boilers caused by or resulting from a fire inside of the building. hot water boilers other than explosion.

This is a double negative question with the words "Not" and "Except" used in the same sentence. Two negatives equal a positive; therefore, to arrive at the correct answer, you must know which answer IS covered under the BOP. Steam boilers caused by or resulting from any condition or event inside the equipment would not be covered. But, damage to a steam boiler from a covered event outside the equipment, such as a building fire not caused by the equipment, would be covered.

Which of the following would NOT be eligible for a Businessowners Policy (BOP)? Five-story office building (X)Service business with 75,000 square feet of floor space Residential condominium building with 50 units Retail store with 15,000 square feet of floor space

Unless specifically noted otherwise, eligible risks may not exceed 25,000 square feet in total floor area or $3 million in annual gross sales at each location.

Under the extension of coverage for Business Personal Property Off-Premises, the most the insurer will pay for loss is:

Up to $5,000 coverage is available for business personal property, other than money, securities, valuable papers and records and accounts receivable during transit or temporarily at a premise the insured does not own, use, lease, or operate.

The Businessowners policy is:

a prepackaged policy. The Businessowners policy prepackages a group of coverages desirable to small businesses.

Under a BOP, liability coverage is triggered by:

an occurrence. BOP liability coverage is an occurrence policy. Occurrence coverage is insurance that provides coverage for the act when it occurs - regardless of when it is reported. If you had coverage under an occurrence policy in 2005 and the claim is not reported until 2011, then the claim is covered.

The Special Businessowners Property Coverage Form covers risks of direct physical loss:

on an open peril basis. The Special Businessowners Property Coverage Form covers risks of direct physical loss on an open peril basis, subject to exclusions and limitations.

The Hired Auto And Nonowned Auto Liability endorsement for the Businessowners policy is designed specifically for insureds:

who have no other commercial auto insurance. This endorsement is available only when the insured has no other commercial auto insurance.