Distinguish between Covered Property and Property Not Covered under the
Businessowners Coverage Form. - -Covered:
Buildings:
Includes PP of landlord (common areas, furnished)
Covers Bridges, Retaining Walls, Wharves, Docks
Replacement Cost
BPP:
Includes Property of Others (in CCC)
Exterior Building Glass
Replacement Cost
Not Covered:
Money/Securities
Fences, radios, antennas, towers, signs (detached) plants
Installed computers (in vehicles etc)
Electronic Data
Identify and describe the Additional Coverages, Coverage Extensions, and Limits Of
Insurance of the Businessowners Policy. - -Additional Coverages:
Fire Department ($2.5k)
B.I.- 12 mo ALS, 72 hr Waiting period payroll 60 days covers normal operating expenses
triggered by suspension (slowdown, cessation, premises is untenable) by covered loss
, CIC Commercial Multi-line Exam Prep-Solved
Extra Expense- No waiting period, 12 mo. pays additional cost while operations are
disrupted
Civil Authority- if authority shuts you down- 4 wks 72 hr waiting (BI/EE)
Money Orders & Conterfit money: $1k
Forgery or Alterations
Increased Cost of Construction
BI from dependent properties
Fire Extingushers
Electronic Data
Interruption of Computer Operations
COVERAGE EXTENSIONS
, CIC Commercial Multi-line Exam Prep-Solved
Newly acquired or construction property (30 days to tell)
Personal Property Off Premises ($10k in transit, no money)
Outdoor Property (2.5k plants, fence, sign FLARE Perils only)
Personal Effects
Valuable Papers
Accts Recivables
BPP in Temp storage units
LIMITS of insurance
attached sign- $1k
Inflation Guard- AUtomatic building increase
BPP Seasonal Increase (25%)
Identify and describe the property Optional Coverages available in the BOP that must be
activated in order for coverage to apple - -Outdoor Signs: $1k attached, $2.5k
Detached
, CIC Commercial Multi-line Exam Prep-Solved
Money & Securities: Theft, disappearance or destruction
Employee Dishonesty
Equipment Breakdown
MUST BE ACTIVATED FOR COVERAGE TO APPLY BY X ON DEC PAGE
Identify the two promises the insurer makes in the Business Liability insuring agreement
and state the requirements that must be met for coverage to apply - -1.) Insurer
agrees to pay the sums of BI/PD that the insured is legally liable to pay
2.) Insurer has the right and duty to defend the insured in the event of a loss
Summarize the advantages and disadvantages of the BOP - -Advantages:
-No Coinsurance
-Replacement Cost Building + BPP
-Automatic Building Increase (inflation)
-Automatic Seasonal Increase BPP
-BI, 12 mo ALS
-Slot Rating
Disadvantages:
-Limited Eligibilty