Which losses would be covered under the property coverage of a BOP? - ProProfs Discuss
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Which losses would be covered under the property coverage of a BOP?

Asked by Fsspc, Last updated: Mar 23, 2024

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Fsspc

Answered Sep 19, 2018

An insured moved inventory to another location to protect it from a tornado. Two days later, a sewer backup in the new location damaged that property.
When a tornado damaged a nearby business, authorities closed off the area for one week to clean up the damage. The insured lost business income during that period.

A and C are correct. The Pollutant Cleanup and Removal additional coverage pays the costs to extract pollutants from the insureds premises, not property belonging to others. Damage to a nearby building might be the basis for a liability claim against the insured, but is not insured by the BOP property coverage.
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