Personal Property of Others
under a Businessowners Policy

Q

Our insured is covered under a Businessowners Standard Property Coverage form BP 00 01 01 97. While at the insured's location, a customer's car was broken into and personal property belonging to the customer was stolen. We submitted a claim for the personal property to the BOP insurer.

That carrier contends there is no coverage for the property of the insured's customer in the automobile because the property was not “business personal property.” Our contention is that, regardless of the nature of the property, the BOP covers the property of others in the insured's care, custody, or control.

Who is correct?

Wisconsin Subscriber

A

Your interpretation is correct; the policy covers property of others in the insured's care, custody, or control. It does not matter if the property is personal or business in nature, just so long as it is in the care of the insured.

But the question arises as to whether the car — and the property contained within — was actually in the insured's care or custody. For example, was the car in a secure lot? Did the customer hand the keys to an attendant? Simply parking in the insured's parking lot would not appear to put the car, and the property, within the insured's care.

A finding for coverage depends on further review of the facts.

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