The Business Owner's Policy Quiz

D is correct. The preservation of property additional coverage covers loss from any cause of loss to property that was removed from the insured location to protect it from damage by a covered peril. Coverage applies for up to 30 days after the property is first moved.

A15: D is correct. Personal and advertising injury covers all of the items listed plus false arrest, wrongful eviction, wrongful entry, invasion of the right of private occupancy, and use of another's advertising idea in an advertisement.

A15: D is correct. Personal and advertising injury covers all of the items listed plus false arrest, wrongful eviction, wrongful entry, invasion of the right of private occupancy, and use of another's advertising idea in an advertisement

A4: A is correct. The standard deductible is $500.

A5: C is correct. Optional coverages are usually preprinted in the policy, but apply only if they are designated in the declarations. Losses involving an object during testing are specifically excluded.

A6: D is correct. The Businessowners Liability coverage includes the following coverages: BI liability, PD liability, personal and advertising injury liability, and medical expense.

The largest office building risk that might be eligible for a Businessowners Policy (BOP) is typically 100,000 square feet. However, eligibility can vary depending on the insurer's specific guidelines and the nature of the office building's operations. It's important to note that BOPs are designed for small to medium-sized businesses, and the size limitation ensures that the policy covers businesses with relatively low-risk profiles.

Under Businessowners Liability coverage, intentional damages, liquor liability for businesses serving liquor, and damage to the insured's own work are typically excluded. However, liability assumed under an insured contract is generally covered, meaning it is not excluded. This refers to the liability that a business assumes under a contract, as long as the contract qualifies as an "insured contract" as defined in the policy.

B is correct. The discovery period during which a claim for this coverage can be filed ends one year from the end of the policy period.

A is correct. Extended Business Income coverage begins after the insured's operations are resumed and continues until the insured is restored to the previous earning condition or for 30 consecutive days (unless a different length of time is specified in the declarations).

A7: A and D are correct. Property owned and used by the insured in the business, such as photocopy machines and furnishings in the insured's private office, would be covered under Business Personal Property coverage.

D is correct. The insurance company will pay for extra expenses that occur within 12 consecutive months after the date of the direct physical loss.

A is correct. The default limit for coverage of business income from dependent properties is $5,000.

A8: A and B are correct. Property owned and used by the insured in the business and tenants' improvements and betterments made at the tenant's expense that cannot be legally removed are covered under Business Personal Property coverage. Materials that are on or within 100 feet of the premises being used for alterations, such as the cans of paint in Choice C, are covered under Building coverage. Personal property used to maintain or service the building, such as the fire extinguishers in Choice D, are also covered under Building coverage.


A8: A and B are correct. Property owned and used by the insured in the business and tenants' improvements and betterments made at the tenant's expense that cannot be legally removed are covered under Business Personal Property coverage. Materials that are on or within 100 feet of the premises being used for alterations, such as the cans of paint in Choice C, are covered under Building coverage. Personal property used to maintain or service the building, such as the fire extinguishers in Choice D, are also covered under Building coverage.