Businessowners Policy (Practice Exam)
with 100% complete solutions
Which of the following small businesses would be eligible for a BOP?
A. A bank
B. A manufacturer
C. A retail store
D. An auto dealer - correct answer ✔✔C. A retail store
A retail store, like a small drug store, would be eligible for a BOP. Remember, the BOP is a
package policy for small business, combining commercial property coverages and the CGL.
However, only certain types of businesses are eligible: service & processing, mercantile (retail),
office buildings, small apartment houses, limited cooking or fast food restaurants and
convenience stores with gas pumps.
Business Personal Property coverage under the BOP includes property of the insured located
within _____ feet of the building described in the Declarations?
A. 25
B. 50
C. 100
D. 500 - correct answer ✔✔C. 100
Business personal property located in or on the buildings at the described premises or in the
open (or in a vehicle) within 100 feet of the described premises is covered by a BOP.
, Under the Liability section of a BOP, Fire Legal Liability is subject to:
A. The General Aggregate limit
B. An Occurrence limit
C. A Per Fire limit
D. The Products and Completed Operations Aggregate - correct answer ✔✔C. A Per Fire limit
The most a BOP will pay for damages due to property damage to premises rented to you arising
out of any one fire is the Fire Legal Liability limit shown in the Declarations.
Let's explain this better. The liability portion of a CGL (which is included in the BOP) has an
exclusion for property of others while in your care, custody or control. So, if your business rents
an office and you negligently cause fire damage to that office, there is no coverage for the
damage you did. Landlords know this, and will ask tenants to buy a coverage called Fire Legal
Liability. This can be added to a CGL to provide coverage for your legal liability in this situation.
The Liability section of a BOP includes all of the following, EXCEPT:
A. Fire Legal Liability
B. Pollution Liability
C. Contractual Liability
D. Products Liability - correct answer ✔✔B. Pollution Liability
Pollution liability is excluded by virtually all liability policies, but coverage can be added by
endorsement for an additional premium charge. However, a BOP will pay up to $10,000 for the
expense of extracting pollutants at the described premises if the release of pollutants was
caused by a covered loss. This is a property coverage, not a liability coverage.
with 100% complete solutions
Which of the following small businesses would be eligible for a BOP?
A. A bank
B. A manufacturer
C. A retail store
D. An auto dealer - correct answer ✔✔C. A retail store
A retail store, like a small drug store, would be eligible for a BOP. Remember, the BOP is a
package policy for small business, combining commercial property coverages and the CGL.
However, only certain types of businesses are eligible: service & processing, mercantile (retail),
office buildings, small apartment houses, limited cooking or fast food restaurants and
convenience stores with gas pumps.
Business Personal Property coverage under the BOP includes property of the insured located
within _____ feet of the building described in the Declarations?
A. 25
B. 50
C. 100
D. 500 - correct answer ✔✔C. 100
Business personal property located in or on the buildings at the described premises or in the
open (or in a vehicle) within 100 feet of the described premises is covered by a BOP.
, Under the Liability section of a BOP, Fire Legal Liability is subject to:
A. The General Aggregate limit
B. An Occurrence limit
C. A Per Fire limit
D. The Products and Completed Operations Aggregate - correct answer ✔✔C. A Per Fire limit
The most a BOP will pay for damages due to property damage to premises rented to you arising
out of any one fire is the Fire Legal Liability limit shown in the Declarations.
Let's explain this better. The liability portion of a CGL (which is included in the BOP) has an
exclusion for property of others while in your care, custody or control. So, if your business rents
an office and you negligently cause fire damage to that office, there is no coverage for the
damage you did. Landlords know this, and will ask tenants to buy a coverage called Fire Legal
Liability. This can be added to a CGL to provide coverage for your legal liability in this situation.
The Liability section of a BOP includes all of the following, EXCEPT:
A. Fire Legal Liability
B. Pollution Liability
C. Contractual Liability
D. Products Liability - correct answer ✔✔B. Pollution Liability
Pollution liability is excluded by virtually all liability policies, but coverage can be added by
endorsement for an additional premium charge. However, a BOP will pay up to $10,000 for the
expense of extracting pollutants at the described premises if the release of pollutants was
caused by a covered loss. This is a property coverage, not a liability coverage.
