BUSINESSOWNERS POLICIES (BOP) QUESTIONS
AND VERIFIED ANSWERS
Business Income Correct Answer: loss from a dependent or secondary property is limited to $5,000.
Business Owners Policy Correct Answer: is a stand-alone package policy, designed to meet the
comprehensive property and casualty needs of small to medium sized business that qualify for its very
reasonably priced premium.
Changes Correct Answer: can only be done in writing by endorsement by either the company or only
the first named insured.
Deductibles Correct Answer: The standard deductible in a BOP policy is listed as $500. As in any policy
with a deductible it must be paid first by the insured before any coverage can be enjoyed.
Electronic Data Correct Answer: provides a maximum of $10,000 for the cost to restore or replace
electronic data which has been destroyed or corrupted by a covered loss (i.e., info on CD's, tapes, etc.)
Employee Dishonesty Correct Answer: The company will pay for direct loss of or damage to business
personal property and "money" and "securities" resulting from dishonest acts committed by employees
acting alone or in collusion with other persons except the insured and the insured's partners where the
intent is to cause loss or damage.
General Conditions Correct Answer: of the BOP include: no benefit to a bailee, the insured must have
control of the property at the time of the loss, standard mortgagee clause, and policy period listed in the
Declarations and the territory is USA, possessions, territories and Canada.
Hired auto Correct Answer: is a vehicle used by the insured business that is either leased, hired, rented or
borrowed by the insured but does not include a vehicle owned by an employee of the insured that is
used for business.
Insured Correct Answer: Any person or firm specifically named (first named insured) in the declarations
section of the contract meets the definition of an insured.
Insured Contract Correct Answer: means that part of any contract or agreement pertaining to your
business under which you assume the tort liability of another to pay damages because of bodily injury or
property damage to a third party if the contract or agreement is made prior to the bodily injury or
property damage.
Insured Premises Correct Answer: means the premises described on the Declarations Page, premises sold,
given away or abandoned if possession has been relinquished to others, and any premises which you
AND VERIFIED ANSWERS
Business Income Correct Answer: loss from a dependent or secondary property is limited to $5,000.
Business Owners Policy Correct Answer: is a stand-alone package policy, designed to meet the
comprehensive property and casualty needs of small to medium sized business that qualify for its very
reasonably priced premium.
Changes Correct Answer: can only be done in writing by endorsement by either the company or only
the first named insured.
Deductibles Correct Answer: The standard deductible in a BOP policy is listed as $500. As in any policy
with a deductible it must be paid first by the insured before any coverage can be enjoyed.
Electronic Data Correct Answer: provides a maximum of $10,000 for the cost to restore or replace
electronic data which has been destroyed or corrupted by a covered loss (i.e., info on CD's, tapes, etc.)
Employee Dishonesty Correct Answer: The company will pay for direct loss of or damage to business
personal property and "money" and "securities" resulting from dishonest acts committed by employees
acting alone or in collusion with other persons except the insured and the insured's partners where the
intent is to cause loss or damage.
General Conditions Correct Answer: of the BOP include: no benefit to a bailee, the insured must have
control of the property at the time of the loss, standard mortgagee clause, and policy period listed in the
Declarations and the territory is USA, possessions, territories and Canada.
Hired auto Correct Answer: is a vehicle used by the insured business that is either leased, hired, rented or
borrowed by the insured but does not include a vehicle owned by an employee of the insured that is
used for business.
Insured Correct Answer: Any person or firm specifically named (first named insured) in the declarations
section of the contract meets the definition of an insured.
Insured Contract Correct Answer: means that part of any contract or agreement pertaining to your
business under which you assume the tort liability of another to pay damages because of bodily injury or
property damage to a third party if the contract or agreement is made prior to the bodily injury or
property damage.
Insured Premises Correct Answer: means the premises described on the Declarations Page, premises sold,
given away or abandoned if possession has been relinquished to others, and any premises which you
