BOP Coverage for Gasoline in Underground Storage Tank
July 13, 2010
The ISO Businessowners form describes business personal property as “in or on the buildings at the described premises or in the open (or in a vehicle) within 100 feet of the described premises.” Does this definition mean that gasoline held in an underground storage tank is not covered on the BOP? There is an available inland marine endorsement for a commercial property policy that will take care of this, but what is the best way to handle this on a BOP?
Georgia Subscriber
Both the 2006 and 2010 ISO BOP forms define “buildings” as “the buildings and structures at the premises described in the Declarations ,” including fixtures and outdoor fixtures. The tanks qualify for building coverage under this definition. Therefore, contents within the tanks are covered as business personal property since the gasoline is located in a building (tanks) at the described premises. This, of course, is the case unless the gasoline is specifically excluded.
Some carriers require that the tanks actually be listed in order for coverage to apply, but the unendorsed ISO BOP (unlike the ISO commercial property form) does not require that individual buildings and structures be scheduled on the policy.
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