The forms have undergone many revisions since they were first introduced. Heretofore, BOP coverage was made up of a general conditions form (BP 00 09 01 97), a standard or special property part (BP 00 01 01 97 or BP 00 02 01 97), and a businessowners liability part (BP 00 06 01 97). The standard property coverage form (BP 00 01 97) provided named perils coverage; the special property coverage form (BP 00 02 01 97) provided open perils coverage. Each form provided both mandatory and optional coverages. Liability coverage was mandatory and was provided by the liability coverage form (BP 00 06 01 97). Mandatory form BP 00 09 01 97 contained the conditions.

Now, however, ISO has revised the businessowners program. Beginning in July 2002 forms BP 00 09 01 97, BP 00 01 01 97, BP 00 02 01 97, and BP 00 06 01 97 were withdrawn. The contents of these forms are incorporated into new form BP 00 03 07 02. Form BP 00 03 07 02 is written on an open perils basis; the form can be converted to named peril coverage by endorsement. The rules governing eligibility have been revised and new endorsements added in the program.

Following is a discussion of the eligibility requirements, the conditions (now Section III of the BP 00 03 07 02), and common endorsements.

Topics covered:
Eligibility—building property
Eligility—personal property
Eligible processing and service occupancies
Ineligible classes of business
Businessowners section III policy conditions
Businessowners program endorsements
Deductible endorsements
Additional insured endorsements
Property coverage endorsements
Business income endorsements
Liability endorsements
Professional liability endorsements
Exclusionary or limiting endorsements
Miscellaneous endorsements

Eligibility—Building Property

Eligibility requirements are contained in the businessowners subdivision of the Insurance Services Office (ISO) Commercial Lines Manual (CLM). Unless otherwise noted, eligible risks cannot exceed 25,000 square feet in total floor area, or exceed $3,000,000 in annual gross sales at each location. Incidental storage buildings not exceeding 25,000 square feet and occupied by the insured may be included. Additional qualifications may be set out in state exception pages.

Apartment buildings of any size, including residential condominium associations are eligible for coverage. Eligible incidental occupancies are (1) offices; (2) eligible wholesaler, mercantile, service or processing occupancies, and contractors which in total do not exceed 25,000 square feet; and (3) contractors which do not occupy more than 7,500 square feet or more than 15 percent of the total area. (Contractors exceeding this limit are classified separately.)

Office buildings, including office condominium associations, occupied principally for office purposes, are eligible. Buildings cannot exceed six stories in height or 100,000 square feet in total floor area. Eligible incidental occupancies are (1) apartments; (2) eligible wholesaler, mercantile, service or processing occupancies and contractors which in total do not exceed 25,000 square feet; and (3) contractors which do not occupy more than 7,500 square feet or more than 15 percent of the total area.

Buildings occupied principally for eligible wholesaler, mercantile, service or processing purposes and contractors which do not exceed 25,000 square feet in total floor area are eligible. Storage buildings occupied by the insured, which are incidental to an eligible wholesaler, mercantile, service or processing risk and do not exceed 25,000 square feet, may be included.

Motels not exceeding three stories may be insured. There is no floor area restriction. Motels with eligible restaurant operations are eligible. Seasonal operations, or motels with bars or cocktail lounges, are not eligible.

Restaurants meeting eligibility requirements may be insured.

Convenience stores, including food/restaurant/gasoline convenience stores are eligible (additional requirements apply; refer to manual).

Self-storage facilities not exceeding two stories in height, except for those permitting cold storage or storage of industrial materials, chemicals, or waste, are eligible.