Business Owners Policy (BOP) Exam Questions with Correct Answers

Business Owners Policy (BOP) Correct Answer A pre-packaged commercial package policy that provides PROPERTY and LIABILITY insurance to certain types of small businesses Eligibility Correct Answer More strict for BOP than CPP. Eligible businesses include certain wholesale, processing and service, restaurant, convenience store, and contracting risks. eligible risks may not exceed 25,000 square feet in total floor area or $3 million in annual gross sales at each location. Eligible Apartments Correct Answer -Any size building permitted -permitted occupancies include offices, contractors and eligible wholesaler, mercantile, processing, and service occupancies -building owner's business personal property in the building is covered Eligible condo commercial unit owners Correct Answer Business personal property of owners of condominium units used for eligible mercantile, wholesaler, processing, service, office, or contractor occupancies Eligible Mercantile Risk Correct Answer -only certain mercantile risk eligible -both building and business personal property may be covered Eligible Motel Correct Answer -Both building and business personal property may be covered -Building cannot exceed three stories. No limitation on floor area -bars and cocktail lounges prohibited -eligible restaurant occupancies permitted -Seasonal operations that are closed more than 30 consecutive days not eligible Eligible Offices (including office condo. associations) Correct Answer -Building cannot exceed 6 stories in height or contain more than 100,000 square feet -Permitted occupancies include offices, contractors and eligible wholesaler, mercantile, processing, and service occupancies -Business personal property in offices that do not occupy more than 25,000 square feet in one building are eligible Eligible Processing and Service Risks Correct Answer -no more than 25% if annual gross sales obtained from off premises operations Eligible Self-Storage Facilities Correct Answer -may not exceed two stories in height, no limit on floor area -not eligible to facilities permitting cold storage, storage of industrial materials, pollutants, chemicals, or waste -Both building and business personal property may be covered