Businessowners Property Coverage, Part I

 Reviewed June 30, 2016

 Summary: Before there were two Insurance Services Office (ISO) Businessowners property coverage forms—one providing standard, or named perils protection, (BP 00 01 01 97), and the other providing special perils protection, (BP 00 02 12 99). In 2002, there became just one form, BP 00 03, which incorporates special perils coverage, liability coverage, and the policy conditions. Coverage may be changed to named perils by attaching endorsement BP 10 09 07 13. This endorsement is discussed elsewhere; see Businessowners Program Endorsements. The Businessowners conditions and liability coverages are also discussed elsewhere. See Businessowners Program for a discussion of eligibility and the general conditions, and see Businessowners Liability Coverage.

The property section of the Businessowners form offers replacement cost coverage or an actual cash value option. Beyond this, much of the coverage under the forms is similar to that available through ISO's commercial property program (see Building and Personal Property Coverage Form).

The following discussion focuses on the property coverages of form BP 00 03 07 13, with any differences from the earlier special form BP 00 02 12 99 indicated. For conditions governing loss payment, limits of insurance, and definitions, see Businessowners Property Coverage, Part II. Remember that not all insurers immediately adopt new ISO forms; many use earlier editions. Therefore, check carefully in making any coverage determinations.

Topics covered:

Eligibility

 The Businessowners (BOP) form may be used for several classes of business, including apartment buildings (including residential condominium associations), office buildings (including office condominium associations), and some selected wholesale, mercantile, processing, and service occupancies. The manual rules allow as well for some restaurants—those having limited cooking facilities, some fast food operations, and motels and some storage facilities. For an in-depth discussion, see Businessowners Program.

 Insuring Agreement

 A. Coverage

We will pay for direct physical loss of or damage to Covered Property at the premises described in the Declarations caused by or resulting from any Covered Cause of Loss.

 Analysis

 The property coverage form the insuring agreement promises to pay for direct loss or damage to covered property (buildings, business personal property, personal property of others in the named insured's care, custody, or control, and tenants' improvements and betterments). Covered causes of loss depend on the form used: special perils in the BP 00 03 or named perils if the BP 10 09 is attached. The property must be at the premises described in the declarations.

 Covered Property—Buildings

 1. Covered Property

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