Small to medium-sized businesses

open perils

• valuation on the building and business personal property is replacement cost
•  limit of insurance on the lost or damaged property is 80% or more of the full replacement cost of the property
• Business Income and Extra Expense = actual cash after 72 hours
• limit of insurance for the building automatically increases by an annual percentage shown in the Declarations

(Building limit X percent of annuak increase)

Divided by 365

=increase

Eligible Risks

Businessowners policy

Eligible Risks

Businessowners policy

Apartment Buildings

Eligible Risks

Businessowners policy

Office Buildings

• do not exceed 6 stories
• or contain more than 100,000 square feet in total area

Eligible Risks

Businessowners policy

Service or Processing

Service and processing businesses such as:

•  bakeries, laundromats, dry cleaners, funeral homes, and print shops

Eligible Risks

Businessowners policy

Contractors

•  annual payroll that does not exceed $300,000
• annual gross receipts from contracting operations do not exceed $3 million

Eligible Risks

Businessowners policy

Restaurants

Eligible Risks

Businessowners policy

Wholesalers

• No more that 25% of annual gross sales are derived from retail/ total floor area is open to the public

Eligible Risks

Businessowners policy

Motels

•  limited to 3 stories in height
• may not be seasonal
• may not contain a bar

Eligible Risks

Businessowners policy

Convenience Food/Gasoline Stores

• gasoline must not exceed 75% of the total annual gross receipts
• Auto service repair, car wash operations, and propane or kerosene tank filling operations are not allowed

Eligible Risks

Businessowners policy

Self-storage Facilities

•  limited to 2 stories in height
• Cold storage or storage of industrial materials, chemicals, pollutants, and waste do not qualify

Eligible Risks

Businessowners policy

Condominium Commercial Unit-Owners

Ineligible Risks

Businessowners policy

• Automobile repair and service stations
• parking lots or garages
• Restaurants, bars, and grills
• Places of amusement
• Manufacturers

Businessowners policy

Covered Property

• Completed additions.
• Fixtures, including outdoor fixtures.
• Permanently installed machinery and equipment
• The insured’s personal property in apartments, rooms, or common areas furnished by the insured as landlord
• Personal property owned by the insured that is used to maintain or service the buildings or structures, or the premises, including: firefighting equipment; outdoor furniture; floor coverings; and appliances used for refrigerating, ventilating, cooking, dishwashing, or laundering
• Property the insured owns that is used in the insured’s business.
• Property of others that is in the insured’s care, custody, or control.
• Tenant’s improvements and betterments, which are fixtures, alterations, installations, or additions made a part of the building or structure that the tenant occupies but does not own; including structures that the tenant acquired or made at their expense but cannot legally remove.
• Leased personal property for which the insured has a legal responsibility to insure.

Businessowners policy

Limitations

• insurer will not pay for loss or damage to property that is missing
• $2,500 for:
  Furs,Jewelry,Patterns
• No coverage is provided for loss to steam and hot water boilers, pipes, engines, or turbines if it is caused by an equipment breakdown, other than an explosion.
• Loss to the interior of a building or structure is not covered unless the exterior also sustains damage

Additional Coverages

Businessowners Coverage Form

Debris Removal

Additional Coverages

Businessowners Coverage Form

Preservation of Property

• cover on an open perils basis, for up to 30 days

Additional Coverages

Businessowners Coverage Form

Fire Department Service Charge

Additional Coverages

Businessowners Coverage Form

Collapse

Additional Coverages

Businessowners Coverage Form

Water Damage, Other Liquids, Powder, or Molten Material Damage

Additional Coverages

Businessowners Coverage Form

Business Income

• pay for the actual loss sustained for a period of 12 consecutive months
• payroll expenses are paid only for 60 days

Additional Coverages

Businessowners Coverage Form

Extra Expense

Additional Coverages

Businessowners Coverage Form

Pollution Cleanupand Removal

•  policy will pay up to $10,000 per location for pollution cleanup and removal
• occurring during each separate 12 month period

Additional Coverages

Businessowners Coverage Form

Civil Authority

• civil authorities prohibit access to the described premises due to a covered loss that occurs within 1 mile
• 72 hours after the action
• ends 4 consecutive weeks after the coverage begins

Additional Coverages

Businessowners Coverage Form

Money Orders and Counterfeit Paper Currency

Additional Coverages

Businessowners Coverage Form

Forgery or Alteration

Additional Coverages

Businessowners Coverage Form

Increased Cost of Construction

Additional Coverages

Businessowners Coverage Form

Business Income from Dependent Properties

Additional Coverages

Businessowners Coverage Form

Glass Expenses

Additional Coverages

Businessowners Coverage Form

Electronic Data

Additional Coverages

Businessowners Coverage Form

Interruption of Computer Operations

Additional Coverages

Businessowners Coverage Form

Limited Fungi, Wet Rot, and Dry Rot

Businessowners Coverage Form

Coverage Extensions

Newly Acquired or Constructed Property

• building: 250,000
• Business personal property: 100,000
• up to 30 days
  
  

Businessowners Coverage Form

Coverage Extensions

Personal Property Off Premises

• insured may extend up to $10,000 of the insurance that applies to Business Personal Property to property
• cover money, securities, valuable papers and records, or accounts receivables

Businessowners Coverage Form

Coverage Extensions

Outdoor Property

• insurance provided by the policy to apply to their outdoor fences, radio and television antennas, signs (other than signs attached to buildings), trees, shrubs, and plants.
• most the policy will pay is $2,500
• not more than $1000 for any one tree, shrub, or plant

Businessowners Coverage Form

Coverage Extensions

Personal Effects

• extend the insurance that applies to Business Personal Property to apply to personal effects
• up to $2,500

Businessowners Coverage Form

Coverage Extensions

Valuable Papers and Records

• may extend the insurance that applies to Business Personal Property to apply to direct physical loss of valuable papers and records it owns
• up to $10,000 at the described premises
• up to $5,000 away from premises

Businessowners Coverage Form

Coverage Extensions

Accounts Receivable

extend the insurance that applies to Business Personal Property to apply to the direct physical loss of records of accounts receivable

• 10,000 on premise
• 5,000  away

Businessowners Coverage Form

Limits of Insurance

• the policy will pay for damage to outdoor signs attached to the building is $1,000 per sign per occurrence
• limit of insurance for Buildings will automatically increase by 8%

Businessowners Coverage Form

Deductibles

• standard deductible is $500
• No deductible applies :

Fire Department Service Charge, Business Income, Extra Expense, and Fire Extinguisher Recharge Systems

If a loss caused by other perils occurs in or to a vacant building, a penalty of 15% will be applied to the loss payment.

• Covers necessary medical expenses for bodily injury, caused by an accident, occurring on the premises the insured owns or rents, or due to the insured’s operations.
• must be incurred within 1 year

• Earthquake Endorsement (BP 10 03)
• Protective Safeguards Endorsement (BP 04 03)
• Named Perils Endorsement (BP 10 09)
• Hired Auto and Non-Owned Auto Liability Endorsement
• The Utility Services – Direct Damage Endorsement (BP 04 56)
• The Utility Services – Time Element Endorsement (BP 04 57)