BOP QUESTIONS AND ANSWERS
2024/2025 100% PASS GRDA [A+]
A business owners policy covers bodily injury, property damage, and personal injury
liability but does not cover - CORRECT ANSWERS-employers liability
On a BOP, if the building has been vacant for more than 60 consecutive days, there is
no coverage for - CORRECT ANSWERS-vandalism, sprinkler leakage, glass
breakage,water damage or theft
Like HO, business owners provides property and and liability coverage in a single
contract. However, unlike HO, there is a single - CORRECT ANSWERS-premium with
no division or itemization of premium charged for property of liability
BOP are prepackaged and designed to fit the needs of - CORRECT ANSWERS-small
to medium businesses
What are some typical businesses that are eligible under BOP - CORRECT ANSWERS-
office buildings
apartments and residential or commercial condos
mercantile
contractors (carpenters, electricians, painters)
convenience stores
As far as office buildings, what are the criteria or limitations? - CORRECT ANSWERS-
no more than 6 stories, up to 100,000 square feet
As far as retail or service businesses, what are limitations? - CORRECT ANSWERS-up
to 3,000,000 in annual gross sales and up to 25,000 square feet in floor space
As far as convenience stores with gas pumps, what are limitations? - CORRECT
ANSWERS-no more than 50% of gross sales can come from gas sales, no auto service
or auto washing
As far as fast food, what are limits? - CORRECT ANSWERS-up to 7,500 square feet;
beer and wine sales are permitted subject to 25% of gross sales
, Under additional coverage, debris removal, how much will the policy pay under BOP? -
CORRECT ANSWERS-same as CCP
25% if reported within 180 days of loss
addition 10,000 if needed
Under additional coverage, Fire dept service charge, what will the policy pay? -
CORRECT ANSWERS-2,500
UNLESS a different type is shown in declarations
Under additional coverage, business income, what will the policy pay under business
income? - CORRECT ANSWERS-following a direct loss to covered property.
Coverage is limited to 12 months following the loss for business income and 60 days
following the direct loss for ordinary payroll.
note the 72 hour waiting period
there is also an additional coverage for this which provides an additional extended
business income for 30 days
Under additional coverage, what will the policy pay under extra expense? - CORRECT
ANSWERS-extra expense is covered up to 12 months following a direct loss to covered
property.
note the fact that there is no waiting period
Under additional coverage, money order and counterfeit paper currency? - CORRECT
ANSWERS-1,000
the limitation for money and securities excluding money and securities under property
covered is excluded if this additional coverage is added
Under additional coverage, forgery and alteration? - CORRECT ANSWERS-2500
Under additional coverage, business income from dependent properties? - CORRECT
ANSWERS-5,000
Under addition coverage, fire extinguisher systems recharge expense? - CORRECT
ANSWERS-5,000
Under BOP additional coverage, electronic data? - CORRECT ANSWERS-10,000
2024/2025 100% PASS GRDA [A+]
A business owners policy covers bodily injury, property damage, and personal injury
liability but does not cover - CORRECT ANSWERS-employers liability
On a BOP, if the building has been vacant for more than 60 consecutive days, there is
no coverage for - CORRECT ANSWERS-vandalism, sprinkler leakage, glass
breakage,water damage or theft
Like HO, business owners provides property and and liability coverage in a single
contract. However, unlike HO, there is a single - CORRECT ANSWERS-premium with
no division or itemization of premium charged for property of liability
BOP are prepackaged and designed to fit the needs of - CORRECT ANSWERS-small
to medium businesses
What are some typical businesses that are eligible under BOP - CORRECT ANSWERS-
office buildings
apartments and residential or commercial condos
mercantile
contractors (carpenters, electricians, painters)
convenience stores
As far as office buildings, what are the criteria or limitations? - CORRECT ANSWERS-
no more than 6 stories, up to 100,000 square feet
As far as retail or service businesses, what are limitations? - CORRECT ANSWERS-up
to 3,000,000 in annual gross sales and up to 25,000 square feet in floor space
As far as convenience stores with gas pumps, what are limitations? - CORRECT
ANSWERS-no more than 50% of gross sales can come from gas sales, no auto service
or auto washing
As far as fast food, what are limits? - CORRECT ANSWERS-up to 7,500 square feet;
beer and wine sales are permitted subject to 25% of gross sales
, Under additional coverage, debris removal, how much will the policy pay under BOP? -
CORRECT ANSWERS-same as CCP
25% if reported within 180 days of loss
addition 10,000 if needed
Under additional coverage, Fire dept service charge, what will the policy pay? -
CORRECT ANSWERS-2,500
UNLESS a different type is shown in declarations
Under additional coverage, business income, what will the policy pay under business
income? - CORRECT ANSWERS-following a direct loss to covered property.
Coverage is limited to 12 months following the loss for business income and 60 days
following the direct loss for ordinary payroll.
note the 72 hour waiting period
there is also an additional coverage for this which provides an additional extended
business income for 30 days
Under additional coverage, what will the policy pay under extra expense? - CORRECT
ANSWERS-extra expense is covered up to 12 months following a direct loss to covered
property.
note the fact that there is no waiting period
Under additional coverage, money order and counterfeit paper currency? - CORRECT
ANSWERS-1,000
the limitation for money and securities excluding money and securities under property
covered is excluded if this additional coverage is added
Under additional coverage, forgery and alteration? - CORRECT ANSWERS-2500
Under additional coverage, business income from dependent properties? - CORRECT
ANSWERS-5,000
Under addition coverage, fire extinguisher systems recharge expense? - CORRECT
ANSWERS-5,000
Under BOP additional coverage, electronic data? - CORRECT ANSWERS-10,000
