Businessowners Policies (BOP) - Chapter 14

An insured has a limit of liability of $1,000,000 on their businessowners policy (BOP) and has caused personal injury to a customer. Therefore, the most the insurer will pay on this claim is:

$1,000,000

What is the standard deductible for a BOP policy?

$500

H's Businessowners policy (BOP) has ended on July 1, 2019. What is the maximum time frame the insurer has to examine H's books and records?

3 years

In the businessowners policy, any property moved to protect it from further loss is covered for how many days at the new location?

30

Which of the following statements regarding the businessowners policy (BOP) is correct?

A BOP provides a standardized package of property and liability insurance for small businesses

Which of the following losses would be covered under section 2 of a BOP?

An insured accidentally slams a shopping cart into a parked car while shopping for business supplies

commercial property

Buildings, equipment, and inventory belonging to the business

Which of the following statements regarding the businessowners policy is correct?

Businessowner policies are written on an open-peril basis

A has selected and paid for outdoor signs coverage as an optional coverage under her businessowners policy. Which of the following losses to her sign would be covered under the policy?

Lightning strikes A's sign and destroys it.

Rented Vehicles

Vehicles the insured may lease, hire, or borrow. May include both "hired" and "non-owned" autos.

All of the following first-party property losses are excluded in a businessowners policy, except:

When one of Harold's fuel storage tanks ruptures and floods his convenience store, Harold is presented with a $10,000 bill for cleaning up the mess.

Which of the following businesses would most likely be eligible for businessowners policy insurance?

a bakery

All of the following losses fall under the contractual definition of advertising injury in a businessowners policy (BOP) except:

a billboard advertisement defaced by graffiti

Which of the following businesses would most likely be eligible for a BOP?

a hair salon

Which of the following risks would not be eligible for coverage under a businessowners policy (BOP)?

a manufacturer of heavy equipment

All of the following would be considered a loss in a coverage territory under a businessowners policy, section 2, except:

a product that is made and sold in Mexico causes a customer to be sick

Under the optional coverages in a businessowners policy, all of the following could be covered EXCEPT:

accounting omissions

Employment practices liability insurance (EPLI)

alleged wrongful acts that arise from employment processes and practices with respect to employees, such as hiring and termination of employment.

Which of the following statements correctly reflects one of the property loss conditions found under a BOP?

an insured must send proof of loss statements within 60 days of the company's request.

All of the following would be eligible for a businessowners policy (BOP), EXCEPT:

apartment buildings with 100 units

Which of the following risks is most likely to be eligible for a BOP?

barber shop

general liability

bodily injury , property damages, personal injury, or advertising injury the insured or their employees may be held legally responsible for

business income

business revenue necessary to pay business expenses, employee wages, and other obligations business owners must meet

When fire damaged a section of the outdoor shopping mall, Lucy's dress shop was forced to close due to unsafe conditions even though her shop was not damaged. Luckily, her Businessowners Policy (BOP) covered 4 weeks of lost income and extra expense under which of the following coverages?

civil authority

personal and advertising injury

damages resulting from alleged copyright infringement, libel, or slander.

Which of the following liabilities would be covered under section 2 of a businessowners policy?

employee negligence

According to the BOP policy conditions section, changes must be made in writing as an endorsement by which insured?

first named

When Valerie's dry cleaner was destroyed by fire, the coverage A of her businessowners Policy covered the replacement cost of:

her specialized equipment, which was permanently installed.

cyber liability

includes attacks and damages to computer systems, data, etc.

equipment breakdown

includes damage to manufacturing equipment as well as computer equipment or other equipment critical to business function.

Which of the following expenses would be covered under supplementary payments coverage incorporated into a businessowners policy (BOP)?

loss of income by the insured due to missed work while defending a claim.

U has decided to install an automatic sprinkler system in his building in order to receive a discount under the business owner policy this endorsement is known as:

protective safeguards

accounts receivable

revenue due to business for products and/or services provided and includes losses from unpaid invoices

Which of the following expenses is NOT covered by the extra expense coverage in the BOP?

the cost of ordinary payroll for up to 60 days

A BOP outlines all of the following duties in the event of a loss EXCEPT:

the insured must send proof of loss within 30 days

Which of the following statements regarding the inspections and surveys condition in the Businessowners policy is correct?

the insurer has the right to inspect or survey an insured at the insurer's option in order to evaluate insurability and premiums

All of the following would be eligible for a businessowners policy EXCEPT:

toy manufacturer