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BOP Property Provisions
includes direct and indirect business income and extra expense losses. A dollar limit appears in the policy declarations for each category of property that is covered.
BOP Covered Causes of Losses
Unless modified by endorsement to provide named perils coverage, the property section of the ISO businessowners coverage form provides open perils coverage.
BOP Significant or Unusual Exclusions
- Utility Services
- Power Surges
- Computers & Data
- Fungus, Wet Rot, Dry Rot, Virus & Bacteria
- Product Errors
BOP Coverage Extensions
are called extensions because they apply only if the policy already covers the category of property—buildings or business personal property—that is being extended to provide a particular additional coverage. Each extension involves an additional amount of insurance rather than a sublimit.
Newly Acquired Property Extension
temporary coverage up to $250,000 per building under construction; up to $100,000 for personal property; expires 30 days after acquisition or start of construction.
Property in Transit or Off Premises Extension
up to $10,000 coverage; excludes money, securities, valuable papers and records.
Outdoor Property Extension
A $2,500 limit is available to cover outdoor property, consisting of trees, shrubs, plants, detached signs, fences, and antennas. A sublimit applies to individual trees, shrubs, and plants. Covered perils for this extension are limited to fire, lightning, explosion, riot and civil commotion, and aircraft. Conspicuous by their absence are perils such as vandalism and windstorm, to which outdoor property can be especially susceptible.
Personal Effects Extension
$2,500 at each location; excludes loss by theft, tools, and equipment.
Value Papers & Records Extension
on location $10,000 limit; off location $5,000; excludes off site stored papers and records.
Accounts Receivable Extension
$10,000 per occurrence; $5,000 other locations; excludes falsification and errors.
Business Income & Extra Expense Coverage in BOP
- no dollar limit
- no coinsurance provision
- 12-month maximum
- payroll 60-day limit
- lasts up to 30 days after repairs are complete
- 72-hour deductible period of restoration applies
Business Income & Extra Expense Exclusions
- Strikes, picketers, or protester.
- Suspension or cancellation of a contract, lease, or license.
Inflation Guard Provision
automatically and continuously increases the building coverage limits by an 8% annual rate by 1/365 of the applicable dollar amount each day of the year.
- $500 per occurrence
- no deductible for: business income, civil authority, extra expense, fire department service charge, fire extinguisher recharge.
Optional BOP Coverages
- outdoor signs
- mechanical breakdown
- employee dishonesty
- money and securities
requires a limit of insurance equal to at least 80% of the replacement cost of the covered property.