Summary: Under the Insurance Services Office (ISO) Businessowners program, the property and liability coverages and the general conditions have been incorporated into the current form BP 00 03 07 13.

In many respects, the liability coverages on the BP 00 03 are comparable to the occurrence version of ISO's Commercial General Liability (CGL) Coverage Form. Consequently, the businessowners insured has essentially the same scope of coverage for premises and operations, products and completed operations, advertising and personal injury, and medical payments as an insured with the CGL form. However, there are some differences between the two forms, as described subsequently in this discussion. For a further discussion of the CGL provisions, see Commercial General Liability Definitions, CGL Coverage Form—Coverage A, CGL Coverage Form—Coverage B, CGL Medical Payments, and General Provision of CGL.

Following is a discussion of the liability coverages in the BP 00 03 . Many insurers may not have adopted the current form, so take this into account when making coverage determinations.

Topics covered:
Business liability coverage
Supplementary payments
Medical expenses
Business liability exclusions
Exclusions applicable to medical expenses
Nuclear energy exclusion
Who is an insured
Limits of insurance
Liability and medical expenses conditions
Liability and medical expenses definitions

Business Liability Coverage

Section II—Liability

A.Coverages

1.Business Liability

a.We will pay those sums that the insured becomes legally obligated to pay as damages because of “bodily injury”, “property damage”, or “personal injury and advertising injury” to which this insurance applies. We will have the right and duty to defend the insured against any “suit” seeking those damages. However, we will have no duty to defend the insured against any “suit” seeking damages for “bodily injury”, “property damage”,  or “personal injury and advertising injury” to which this insurance does not apply. We may at our discretion, investigate any “occurrence” or any offense and settle any claim or “suit” that may result. But:

(1)The amount we will pay for damages is limited as described in Paragraph D – Liability And Medical Expenses Limits Of Insurance in Section II – Liability; and

(2)Our right and duty to defend end when we have used up the applicable limit of insurance in the payment of judgments or settlements or medical expenses.

No other obligation or liability to pay sums or perform acts or services is covered unless explicitly provided for under Paragraph f. Coverage Extension – Supplementary Payments.

Analysis

The most noticeable difference between the liability section of the Businessowners form and the CGL is format. In the liability section of the Businessowners form, bodily injury and property damage liability as well as advertising and personal injury liability are all insured under one coverage called “business liability.” In contrast, the CGL insures bodily injury and property damage liability under coverage A, and advertising and personal injury through coverage B. The Businessowners liability part also provides medical expenses coverage, which is equivalent to medical payments coverage (coverage C) of the CGL.