Property and Casualty Chapter 14

The Business owners Policy, or BOP, is a ____ policy that can be used to cover most small low _____.

Prepackaged, Low risk

One of the advantages of the BOP is that it is ____, which means that many of the coverage questions have been predetermined by the insurance company which lowers the _____.

Prepackaged, Premium

The BOP automatically includes both ____ coverage's and ____ coverage's.

Property and Liability

Eligible for a BOP are small to medium _____ businesses.

Low risk

Ineligible for a BOP are high risk businesses, such as auto repair businesses, auto service stations, auto dealers, parking garages, ____,_____,____ or ______ (no Cars, Bars, Banks or Manufacturing).

bars, large restaurants, banks or manufacturing businesses

The BOP offers two levels of peril power: ____(Standard) or _____.

Basic or Special

Both the building and the _____ are automatically covered.

Contents

The BOP standard deductible is $____.

$500

The BOP does NOT contain a Coinsurance requirement; however, there is an incentive to purchase an adequate amount of coverage. If you purchase at least _______, your loss settlement will be on a Replacement Cost basis instead of on an ___ basis.

80 percent to value, ACV

The BOP automatically provides _____, ______coverage for Loss of Income and Extra Expense. However, there is a ______ time based deductible.

months, 72 hour (3 Day) coverage, 72 hour (3 Day)

The BOP has a built in peak season benefit that automatically allows for up to a __ percent increase in business inventory without the necessity of notifying the insurance company.

25

Optional BOP coverage's include Outdoor Signs, ____, ______, _____ , _____ and Money and Securities.

Employee Dishonesty, Mechanical Breakdown, Burglary and Robbery

The BOP Endorsement that gives a business a premium reduction for installing burglar alarms or fire alarms is called Protective _____.

Safeguards

Under the Protective Safeguards endorsement, your burglar alarm can be out of service for up to _____ without notifying the company before you lose coverage.

48 hours (two days)