RMI 4224 Exam 3 Study Guide Chapter 15 Business Owners Policy BOP Eligibility Apartment Buildings o Includes residential condominium Artisan Contractors Convenient Stores Office Buildings o Carpentry construction or drywall installation o With or without fast food restaurants No auto repair car wash or propane kerosene tank filling o Can t exceed 6 stories or 100 000 square feet of total floor area Service Processing Businesses o Size limitations and also bakeries Laundromats print shops Restaurants o No more than 7 500 square feet of floor space o Limitations to seating capacity o Limitations to amounts of alcohol sales 1 Limited cooking establishments 2 Fast food 3 Casual dining 4 Fine dining Self storage Facilities Wholesalers o Can t exceed 2 stories in height o Industrial materials chemicals pollutants and waste are ineligible o No more than 25 of sales may come from retail operations o No more than 25 of floor space may be open to the public o Distribute hardware tools auto supplies plumbing supplies and clothing Policy Structure Declarations o Name and mailing address of named insured o Policy number o Name and mailing address of the agency o Designation of the insured s legal status o Policy period o Addresses and location covered o Limits of insurance o List of forms and endorsements Coverage Form o Section I Property o Section II Liability o Section III Conditions Endorsements Property Section I BPP Form o Provide coverage similar to unendorsed BOP Cause of Loss Special Form o Provide coverage similar to unendorsed BOP o Provide coverage similar to unendorsed BOP BI EE Form Definitions Property Covered o Building Completed additions Fixtures Permanently installed machinery and equipment Personal property in apartments rooms or common areas furnished by you acting as a landlord Personal property used to maintain the building o Business Personal Property Named insured s personal property in or on the buildings at the described premises or within 100 feet and includes Owned property used by the named insured in their business Property of others in the named insured s care custody control but only for the amount they are legally liable plus cost of labor and materials or services furnished or arranged on the property of others Tenant s improvements and betterments Leased personal property Exterior building glass Business personal property in an undescribed building o Property Not Covered Aircrafts autos and other vehicles that require registration Money and securities Contraband Land water growing crops or land Watercraft Accounts bills food stamps Computers permanently installed in aircraft watercraft or motor truck Electronic data Animals Optional Coverages Outdoor Signs Money and Securities Burglary and Robbery Employee Dishonesty Equipment Breakdown Additional Coverages Debris removal Preservation of property Fire department service charges Collapse Water damage Business income Extra expense Pollutant clean up and removal Civil authority Money orders counterfeit money Forgery and alteration Business income from dependent properties Glass expense Fire extinguisher recharge expense Electronic data Limited coverage fungi wet rot dry rot and bacteria Interruption of computer operations Increased cost of construction Coverage Extensions Newly acquired or constructed property Personal property off premises Outdoor policy o Provides coverage for specified perils of fire lightning explosion riot or civil commotion aircrafts to fences antennas signs trees shrubs and plants o Limit is 2 500 and only 1 000 for one plant tree or shrub Personal effects o Personal property that is portable in nature such as jewelry or clothing o Up to 2 500 at each described premises o Doesn t apply to theft o Doesn t cover tools and equipment used in insured s business Valuable papers and records o Pays loss of valuable papers and records including cost to research replace or restore lost information or damaged records o Up to 10 000 at described premises o 5 000 at other locations Accounts receivable o Loss to accounts receivable records o Up to 10 000 a year per occurrence at described premises o 5 000 a year per occurrence at any other location Exclusions Ordinance or law Earth movement Governmental action Nuclear hazard Utility services War and military action Water Certain computer related losses Fungi wet rot or dry rot Virus or bacteria Electrical apparatus Consequential losses Smoke vapor gas Steam apparatus Frozen plumbing o Plumbing losses arising out of insured s neglect Dishonesty o Coverage should be provided in a commercial crime policy o No coverage for dishonest acts by the named insureds partners directors or representatives False pretense Exposed property Collapse Pollution Neglect Exclusions other types of losses Errors or omissions o Programming or processing errors Installation testing repair o Losses arising from errors in design testing or repair of the computer system Electrical disturbance o Loss to electronic media and records caused by an electrical disturbance Continuous or repeated seepage or leakage of water Weather conditions Acts or decisions Negligent work o Loss from alleged faulty inadequate or defective planning zoning development design workmanship construction or improper material use or maintenance Loss or damage to products o Product becomes unable to be used and is destroyed because of an error in the production process Business income and extra expense exclusions build due to a strike or the suspension Accounts receivable exclusions o Loss arising from extra expense or increased business income loss to repair or o Alteration falsification concealment or destruction of records of accounts receivable due to wrongful giving or taking of money or securities or similar property o Bookkeeping accounting or billing errors or omissions o Loss found only because of an audit of records or inventory Limits Outdoor signs o 1 000 limit on outdoor signs attached to the building Automatic increases in building limit o Automatic increase of 8 is provided unless different percentage is shown in declarations o Increase is based on the number of days since the beginning of the policy year Seasonal increase limit o 25 increase to business personal property o Applies only if the limit of insurance for business personal property is 100 of the average monthly values during the 12 months prior to the loss o On basis of building or contents that is insured under documents Other