Time element endorsements

Property exclusion

Additional insured endorsements

Liability coverage endorsements

Professional liability endorsements

Amending the pollution exclusion

Liability exclusions

Property Coverage Endorsements

 There are many endorsements that can be attached to the businessowners forms BP 01 00 and BP 02 00 to give additional coverage. Increased limits of coverage may be indicated on the declarations, or by attaching endorsement BP 03 51 01 15 Property Additional Coverage Endorsement. (See discussion later in this article.) Following are some of the more common endorsements.

 Burglary and Robbery Coverage (BP 03 02 02 04). This endorsement is attached only to BP 01 00, because the BP 02 00 already provides these coverages. The endorsement applies to the optional property coverage for burglary and robbery in the BP 01 00. Two options are available. The first provides coverage for loss to business personal property (other than money and securities) resulting from burglary and from robbery. The second provides limited coverage for loss to business personal property (other than money and securities) resulting from burglary and safe burglary, and for loss to business personal property (including money and securities) resulting from robbery and messenger robbery. Replaces BP-302 Ed 1.0.

 Theft Coverage (BP 03 06 02 04). This endorsement is attached only to BP 0100, because the BP 02 00 already provides coverage. The endorsement covers loss to business property (other than money and securities) resulting from actual or attempted theft. Replaces BP-306 Ed 1.0.

 Computer Coverage (BP 03 22 02 04). This endorsement is used only with the BP 01 00, because the coverages are already included in the BP 02 00. Risks of direct physical loss, including coverage for loss caused by mechanical breakdown, flood, water damage, and earthquake are included. Certain exclusions apply, such as for loss caused by computer virus or hacking. Replaces BP-322 Ed 1.0.

 Water Damage Coverage—Back-up and Overflow Coverage (BP 03 30 06 12). There is coverage for loss caused by water or sewage that backs up, overflows, or is otherwise discharged from sewers or drains, sumps or sump pumps, or other systems designed to remove subsurface water from the foundation area when this endorsement is attached. This endorsement was modified in 2012. Coverage for loss of earnings as a result of a loss covered by this endorsement is available. The standard water exclusion appears in this endorsement; it excludes flood, surface water, mudslide, and the other standard exclusions for water. New exclusions are for ordinary maintenance and proper condition. These exclusions ensure that if the insured failed to perform ordinary maintenance and repair on his property to keep a sewer or drain free from obstructions, or failed to maintain a sump pump or similar equipment in working order, there is no coverage for resultant damage. The building and any business personal property to be insured must be indicated on the endorsement. Replaces BP-330 10 08.

 Computer Virus and Computer Hacking Coverage (BP 07 14 02 04). This new endorsement provides coverage for direct physical loss or damage to the insured’s computer, network, or Web site caused by or resulting from a computer virus or computer hacking. Loss of income may be included. The amount of property damage coverage and loss of income coverage desired must be scheduled. A separate deductible applies to the property damage coverage. The cost of research or other expenses necessary to reproduce lost data records is included.

 Condominium Loss Assessment Coverage (BP 03 19 01 04). Loss assessment resulting from loss or damage to property owned in common by all condominium unit owners can be covered. The unit number, building number (if any), and deductible per unit must be shown on the endorsement. An assessment based on the association’s having a high deductible in its insurance is limited to $1,000. Replaces BP-319 Ed 1.0.

 Earthquake and Volcanic Eruption Coverage (BP 0332 06 12). When this endorsement is attached, coverage for the perils of sinkhole collapse, earthquake, and volcanic eruption applies to property covered under coverages A (building), B (business personal property), and C, (loss of income). There are some minor wording changes in the 2012 edition under perils covered. Coverage is for loss or damage, not just loss, and all shocks or eruptions are considered a single earthquake or eruption, instead of a single loss. A restriction that states that coverage does not apply for damage from earthquakes, eruptions, explosions, or effusion of a volcano that begins before the inception date of the policy is added. If the earthquake or volcanic eruptions begin within 168 hours prior to inception, and this coverage is replacing coverage that excludes such losses after the expiration of the coverage, losses that occur after this policy’s inception date are covered.

 For example, policy A runs February 1 2016 to February 1 2017. Policy B runs February 1 2017 to February 2018. An earthquake occurs on January 30th, under policy A and aftershocks continue for the next few days. Any loss that occurs under policy B will be covered, even though the event began under policy A.

The exclusion under perils excluded is removed and the form now states that the Earth Movement exclusion does not apply to the coverage provided in this endorsement.

 A percentage deductible (the percentage of the value of the covered property at the time of the loss) applies separately to each building or structure described on the declarations, personal property in each building or structure, and property in the open or in vehicles within 100 feet of the described premises. Replaces BP-332 01 04.

 Equipment Breakdown (BP 06 50 06 12). By attaching this endorsement, direct physical loss or damage to covered property caused by a peril as described is covered. There have been some changes in the 2012 form. Accident now means sudden and accidental instead of direct physical loss, and includes loss by artificially generated electrical, electromagnetic, magnetic energy, including arcing that disturbs or interferes with electrical or electronic wiring, networks, systems or devices. Included in the definition of covered equipment is property that generates, transmits or utilizes energy including computers, and under the utility services provision, includes computers or property that transmits energy under vacuum or pressure other than the weight of its contents. Vehicle is defined as any machine or apparatus used for transportation that moves under its own power, and includes cars, trucks, buses, trailers, bulldozers, tractors, aircraft and other equipment. Not included as a vehicle is stationary, permanently installed property receiving power from an external power source.

Additional coverages include: the additional cost to repair or replace covered property because of the use or presence of a refrigerant containing CFC (chlorofluorocarbon) substances (limited to $25,000, which includes loss of income); loss or damage to computers (limited to $25,000, which includes loss of income); expediting expenses ($25,000); additional costs to repair or replace covered property because of pollutant contamination ($25,000); and spoilage. Loss of income coverage C is extended to provide coverage for the restoration period when the named insured’s normal business activities are interrupted because of an accident to covered equipment. Coverage for loss of income resulting from utility service interruption (as when damage to property owned by a landlord, utility, or other supplier of energy occurs) begins twenty-four hours after the direct physical loss or damage occurs, and ends when the utility service has been fully restored. The base deductible is $500; higher deductibles are available. Certain restrictions and exclusions apply; consult the form. Newly added is coverage for data restoration, the cost research, replace and restore lost data records, programs and application. The limit is $25,000 and excess over other coverage. Environmental safety and efficiency improvements is another new additional coverage, and provides for the additional cost to replace damaged equipment with equipment that is safer or more efficient than the equipment being replaced. The most paid is 150% of what the cost would have been to replace with like kind and quality.

The full water exclusion has been added to this form, and has an exclusion for loss or damage caused by an error or omission in programming, or the storing or processing data records, design, specifications, installation or repair of computers. An exclusion for misalignment, miscalibration, tripping off-line or any condition that can be corrected by resetting, tightening, or adjusting or cleaning equipment exists. Replaces BP 06 50 01 04.

 Fine Arts Coverage (BP 03 24 02 04). Fine arts may be scheduled. A separate deductible applies. Fine arts acquired during the policy period are covered for their actual cash value, but no more than 25 percent of the total limit shown in the schedule. Coverage for newly acquired items applies up to 90 days and ends the earliest of when the items are reported to the insurer, the end of the reporting period that applies, or the expiration date of the coverage. Replaces BP-324 Ed 1.0.

 Builders’ Risk (Completed Value) (BP 07 13 01 04). Building property under construction can be insured for 100 percent of its completed value on this new endorsement. Coverage must be provided from the date construction begins. Property such as machinery, fixtures, equipment, and supplies intended to become a permanent part of the building are covered. Building supplies and materials owned by others in the insured’s care, custody, or control that are intended to become a permanent part of the building or structure are covered up to $5,000.

 Installation Tools and Equipment (BP 07 15 01 04). This endorsement provides coverage for the named insured’s tools and equipment and similar property belonging to others that is in the named insured’s care, custody, and control. The limit of coverage, deductible, and a description of the tools and equipment are to be shown on the endorsement. Replacement cost coverage is optional. There are three additional coverages: employees’ tools are covered; however, coverage is limited to $2,500 per occurrence, $100 for any one item, and $500 for all property owned by any one employee; newly acquired equipment (limited to $500) is covered for 30 days from the date of acquisition or until the equipment is reported to the insurer; and rental reimbursement (limited to $2,500 per occurrence) for rental expense if a covered peril renders the named insured’s tools or equipment inoperable.

 Installation Floater (BP 07 16 01 04). This endorsement is designed to cover the named insured’s materials, supplies, machinery, tools and equipment, and similar property of others in the named insured’s care, custody, or control that is intended to become a permanent part of the insured business’s installation, construction, or erection project. There are three additional coverages: the cost of contract penalties (limited to $5,000) incurred if the insured cannot complete a covered project because a covered loss occurred; the cost (limited to $5,000) for loss or damage to covered property at a temporary storage location while awaiting installation; and loss or damage (limited to $5,000) for covered property while in transit. Certain exclusions apply, such as for loss arising out of design specification.

 Ordinance or Law Extension (BP 03 21 01 04). When the insured selects replacement cost coverage, there is limited ($10,000) ordinance or law coverage. By attaching this endorsement, the insured can schedule an increased amount of coverage for the value of an undamaged portion of a building or structure, the increased costs of debris removal, and an increased cost of construction. If damage to a building or structure is caused by both a covered and an excluded cause of loss, and enforcement of any ordinance or law is attributed solely to that excluded cause of loss, this endorsement will not apply. But if loss or damage is caused by both a covered and an excluded cause of loss, and enforcement of any code is attributed partly to the excluded cause, then coverage under the endorsement is prorated. For example, a flood may result in a fire at the property. The local ordinance requires elevation, but there are no other requirements because of the fire. The coverage will not respond to the elevation requirement. But if there are both elevation and requirements to replace outdated wiring because of the fire, then coverage responds. Replaces BP-321 Ed 2.0.

 Property Additional Coverage Endorsement (PACE) (BP 03 51 01 15). This endorsement may be attached to either the BP 01 00 or BP 02 00. It gives increased amounts of coverage for the various optional coverages. Accounts receivable at the described premises is increased to $20,000, and to $5,000 away from the described premises. Business personal property off premises is increased to $15,000 in the 2015 form; this is an increase from the 2004 form, where the limit was $10,000; employee dishonesty to $10,000; forgery to $5,000; outdoor signs to $10,000; personal effects to $5,000; valuable papers and records at the described premises to $15,000, and to $5,000 away from the described premises. Spoilage coverage is added for $10,000. Certain restrictions, exclusions, and limitations apply; consult the endorsement. Replaces BP-351 01 04.

 Seasonal Increase (BP 03 23 01 04). When coverage B (business personal property) is insured for 100 percent of its average monthly value, the policy provides an automatic increase of 25 percent to allow for seasonal increases. This endorsement allows for greater than the 25 percent if needed. Replaces BP-323 Ed 1.0.

 Spoilage Coverage (BP 03 27 06 12). Insureds may want to cover perishable stock for the peril of spoilage, yet not need the broad increases in coverage provided by the PACE endorsement. Or, they may need more coverage than the $10,000 provided by the PACE. This endorsement allows the amount of coverage to be scheduled; insureds may choose coverage for breakdown, contamination, and power disruption, breakdown and contamination only, or power disruption only. Certain exclusions apply, such as for earth movement. The exclusion for volcanic eruption has been removed from the 2012 form; the additional coverage for limited fungus and related perils does not apply, and restrictions on loss of use have been expanded to include any expenses incurred to minimize or avoid loss of use from business interruption, delay, loss of market and loss of use. Replaces BP-327 01 04.

 Utility Interruption (Property Damage) (BP 06 61 06 12). Loss or damage to covered property resulting from interruption of a public utility service caused by a peril insured against is provided by this endorsement. A significant change is made in the 2012 form in that the interruption does not have to occur off-site. The insured can elect to have the coverage subject to the limits for coverages A and B, or separate limits can apply. The applicable utility service that is to be covered—electricity, steam, or gas; electricity, steam or gas including overhead transmission lines; communications supply; communications supply including overhead transmission lines; or water supply—must be indicated for each location. Coverage for loss of income may be purchased; see later in this article under Time Element Endorsements. Replaces BP-0661 01 04.

 Time Element Endorsements

 Increased Restoration Period (Ordinance or Law) (BP 07 17 01 04). This endorsement extends loss of income coverage to include an expanded period of restoration resulting from the increase in time necessary to rebuild or replace the damaged property because of the requirements of any code or ordinance regulating the rebuilding.

 Utility Interruption (Time Element) (BP 06 62 06 12). Like the utility interruption endorsement for property damage (BP 06 61), the time element endorsement responds to loss of business income because of interruption of power, communications, etc. Remember that coverage for business income is triggered by direct physical damage to covered property. Phone lines or an Internet connection being down because of damage to a switch or junction box off premises will therefore not trigger business interruption coverage. Attaching this endorsement in conjunction with BP 06 61 gives the insured property damage and loss of income coverage. Replaces BP 06 62 01 04.

 Self-Storage Warehouses (BP 07 35 01 04). This endorsement extends loss of income coverage to include loss of rents when a covered cause of loss damages the space held for rental. Included as well is coverage for damage to the customers’ property for which the named insured is legally liable. There is also liability coverage for the insured’s acts or omissions resulting from the named insured’s denial of a customer’s access to their property or from the sale of that property necessitated by the customer’s delinquent account.

 Property Exclusion

 Theft Exclusion (BP 03 48 01 04). This endorsement may be attached only to the BP 0200 (the BP 0100 does not provide coverage for theft of business personal property; the unendorsed BP 02 00 does). Replaces BP 348 Ed 1.0.

 Additional Insured Endorsements

 There are occasions when the insured business wishes to add another entity as an additional insured on its own businessowners policy, usually with regard to some specific function. Following are some of the endorsements used for these purposes. For brevity’s sake, we are omitting “Additional Insured” before each of the endorsements. So, for example, Concessionaires Trading Under the Insured’s Name appears rather than Additional Insured—Concessionaires Trading Under the Insured’s Name.

 Concessionaires Trading Under the Insured’s Name (BP 07 09 01 04). Amends the definition of “insured” to provide liability coverage for entities who own and conduct activities in a store owned by the insured. For example, it is common in department stores to see separate cosmetic counters, which are actually owned by the cosmetic company. It appears, however, that they are operating in the department store’s name. The concessionaire must be identified on the endorsement or schedule. Liability coverage applies only under Coverage L for bodily injury or property damage arising out of the products and completed work hazard. Replaces endorsement GL-845 Ed 2.0.

 Controlling Interest (BP 07 02 01 04). Amends the definition of “insured” to include a person or organization shown on the endorsement. Covers liability arising out of that person’s or organization’s financial control over the named insured, or arising out of the control of the part of the premises as designated in the endorsement that is leased or occupied by the named insured. The coverage does not apply, however, to any structural alterations, new construction, or demolition performed by or for the scheduled person or organization. Replaces endorsement GL-108 Ed 1.0.

 Co-Owner of Insured Premises (BP 07 01 01 04). The insured business might co-own a premises with another entity. This endorsement gives that person or organization coverage with respect to liability incurred as a co-owner. Both the premises and person or organization must be shown on the endorsement. Replaces GL-108 Ed 1.0.

 Designated Person or Organization (BP 07 06 01 04). Designated persons or organizations, activities, or interests may be scheduled on this endorsement. These entities or interests are given liability coverage, but only with respect to liability brought about by the named insured’s activities or those acting on the named insured’s behalf. The designated person, organization, activity, or interest has no coverage for its sole negligence. Replaces GL-842. Ed 2.0.

 Engineers, Architects, or Surveyors (BP 07 05 01 04). Amends the definition of “insured” to include any architect, engineer, or surveyor engaged by the named insured, but liability applies only to activities of the named insured or those acting on the named insured’s behalf. The endorsement does not provide liability for the architect’s, engineer’s, or surveyor’s sole negligence, nor for any professional services. Replaces GL-111 Ed. 1.0.

 Grantor of Franchise (BP 04 99 01 04). A designated person or organization that grants a franchise to the named insured is granted liability, but only with respect to liability incurred as grantor of the franchise. Replaces BP-499 Ed 1.0.

 Lessor of Leased Equipment (BP 03 05 01 04). The person or organization scheduled in the endorsement is provided liability for the named insured’s maintenance, operation, or use of the scheduled leased equipment. There is no coverage for the person’s or organization’s sole negligence or those acting on behalf of that person or organization. The coverage does not apply to any “occurrence” after the lease has expired. Replaces BP 305 Ed 1.0.

 Lessor of Premises (BP 07 07 01 04). The person or organization shown designated on the endorsement is an insured for damages for which the named insured is legally liable that arise out of the part of the designated premises leased to the named insured. The coverage does not apply to the lessor’s sole negligence, nor to any structural alterations, new construction, or demolition operations performed by or on behalf of the designated person or organization. Replaces GL-841 Ed 2.0.

 Newly Acquired Organizations (BP 07 38 06 12). If the named insured purchases or forms a new organization, this endorsement may be used to extend liability coverage for ninety days following acquisition or formation, or to the end of the policy period, whichever is earlier. The 2012 form no longer amends the definition of insured, and amends the definition of “you” and “your” to mean the person, persons, entity or organization named as the insured on the declarations, except with respect to cancellation, renewal or nonrenewal, or premium. Regarding those terms “you” and “your” include any organization newly acquired or formed by the named insured shown on the declarations as long as the named insured has majority interest in the newly formed organization. There can be no other available similar insurance, and there is no coverage for any bodily injury, property damage, or personal and advertising injury that occurred prior to the acquisition or formation. This endorsement is new. Heretofore, newly acquired organizations were automatically given insured status by definition. Replaces BP 07 38 01 04.

 Owner or Lessor of Leased Land (BP 03 07 01 04). The lessor of land leased to the named insured may be designated an additional insured, but only with respect to the lessor’s liability arising out of the ownership, maintenance, or use of the part of the land leased to the named insured. The premises and lessor must be designated on the endorsement. The insurance does not apply to any structural alteration, new construction, or demolition operations, or to any occurrence after the lease’s expiration. Replaces BP 307 Ed. 1.0.

 State or Political Subdivisions—Premises Permits (BP 07 04 01 04). When the named insured business carries out operations that necessitate obtaining a permit from a local political entity, this endorsement may be attached to give that political entity additional insured status. There is thus coverage for bodily injury or property damage arising out of: “the existence, maintenance, repair, construction, erection, or removal of advertising signs, awnings, canopies, cellar entrances, coal holes, driveways, manholes, marquees, hoistway openings, sidewalk vaults, street banners, or decorations and similar exposures; the construction, erection, or removal of elevators; or the ownership, maintenance, or use of any elevators to which these Commercial Liability Coverages apply.” Replaces GL-111 Ed 1.0.

 Townhouse Associations (BP 03 34 01 04). Individual townhouse owners are covered with respect to liability arising out of membership in the townhouse association. There is no coverage for liability arising out of the individual townhouse owner’s ownership, maintenance, use or repair of his or her own unit. Replaces BP 334 Ed. 1.0.

 Vendors (BP 07 08 01 04). A vendor selling the insured business’s products has limited products liability when this endorsement is attached. The vendor as well as the products must be shown in the endorsement. Certain exclusions apply. There is no coverage for any express warranty not authorized by the named insured, for any intentional changes the vendor makes to the product, demonstration or installation the vendor carries out at premises other than his or her own, or any products of the insured business the vendor relabels or uses with any other product. There are other exclusions; please refer to the endorsement. Replaces GL-843 Ed 2.0.

 Liability Coverage Endorsements

 Customers’ Auto Legal Liability Coverage (Care, Custody, or Control Exception) (BP 0744 01 04). This endorsement provides coverage for property damage to a customer’s auto left in the care, custody, or control of the insured. For example, without the endorsement an insured parking a customer’s car would be covered for bodily injury or property damage to property of another, but not to the car he or she was parking. The insured must be legally liable for the damage. The amount of coverage per occurrence and the aggregate must be scheduled.

 Coverage E—Employee Benefits Liability Coverage (Claims Made Basis) (BP 07 28 01 04). Attaching this endorsement provides coverage for damages due to injury to an employee caused by an act, error, or omission the insured committed in administration of an employee benefit program. The endorsement contains its own insuring agreement, definitions, exclusions, conditions, and deductible ($1,000 per claim). A supplemental extended reporting period may be obtained by attaching BP 07 29 01 04. Replaces GL-892 Ed 3.0 and GL-893 Ed 2.0.

 Employment Practices Liability (Claims Made Basis) (BP 06 23 02 04). The endorsement, which is coverage F, covers wrongful employment practice such as unlawful discrimination, wrongful termination, invasion of privacy, or sexual harassment. An amount of coverage per claim ($25,000 to $1,000,000) and an aggregate ($25,000 to $1,000,000) are selected, along with a deductible ($2,500 to $25,000). An extended reporting period may be purchased, which lasts for three years unless otherwise noted. Attach BP 0639 01 04. Replaces BP 06 23 03 99 and BP 06 39 03 99.

 Non-Owned Auto Liability Coverage/Hired Auto Liability Coverage (BP 03 33 01 04). Attaching this endorsement provides coverage for bodily injury or property damage resulting from the use of a non-owned auto in the named insured’s business by other than the named insured. A non-owned auto is any auto the named insured does not own, lease, hire or borrow; an auto owned by an employee, perhaps. If the named insured is a partnership, a non-owned auto does not include an auto owned by any partner. Hired auto coverage provides coverage for any property damage or bodily injury arising out of the maintenance or use or a hired auto by the named insured or the named insured’s employee when in the course of the named insured’s business. A hired auto is one the named insured hires, leases, or borrows on an occasional or infrequent basis. Hired autos are not ones leased, hired, or borrowed from an employee or partner or executive officer. Either one or both coverages may be selected. Replaces BP-605 Ed 1.0.

 Expanded Non-Owned Auto Liability Coverage/Hired Auto Liability Coverage (BP 06 05 01 04). Attaching this endorsement provides coverage for the named insured’s use of a non-owned auto in addition to the coverages as described earlier under BP 03 33 01 04. Replaces BP-605 Ed 1.0.

 Professional Liability Endorsements

 Attaching the following endorsements to the BP 01 00 or BP 02 00 provides professional liability coverage.

 Pharmacists’ Professional Liability Coverage (BP 07 18 01 15). Adds coverage for bodily injury, property damage, or personal and advertising injury arising out of the professional services rendered by a pharmacist. The 2015 form adds a definition of “retail pharmacy practice” as the selling, preparing, prescribing, preserving, administering or handling any drugs and vaccinations. Included is performing blood tests, consulting, diagnostic services, managing drug therapies, referrals, or similar services rendered for medical purposes. Coverage is then extended to injury or damage arising out of such services provided by a retail pharmacy as defined. Not included is compounding. Compounding is a specialty service that most retail pharmacies do not engage in. Replaces BP 0718 01 04.

 Optical and Hearing Aid Establishments (BP 0719 01 15). Provides coverage for bodily injury, property damage, or personal and advertising injury arising out of rendering or failure to render professional service in the practice of optometry, optical services, or hearing aid services. This includes the prescription, preparation, fitting, sales, handling, demonstration, or distribution of ophthalmic lenses, optical goods or products and similar products, or hearing aid devices in connection with the named insured’s business. The 2015 adds a definition of “optical or hearing aid practice” which is the preparation, fitting, sale, handling, demonstration, distribution of ophthalmic lenses, optical, goods or other products including fitting lenses into frames and hearing aid devices. Employees are now considered insureds while in the course of performing their duties related to the business. An exclusion is added for injury or damage arising out of the failure to render professional services or negligence or other wrongdoing in the supervision, hiring, or training of another person if the injury/damage arises out of the rendering or failure to render service. Replaces BP 0719 01 04.

 Barbers’ and Hair Stylists’ Liability (BP 0721 01 15). This endorsement has been renamed to Barbers’ and Hair Stylists’ liability instead of Cosmetologists’ liability. Naturally a definition defining barber and hair stylist services is added, which includes conditioning, cutting, dyeing, shampooing, shaving, styling or trimming of hair as well as advice, instruction or consultation related to the services provided. Covers bodily injury, property damage, and personal and advertising injury arising out of rendering or failure to render professional service as a cosmetologist. Occurrence is redefined to include acts or omissions stemming from the rendering or failure to render such services. It is common for stylists to rent space or chairs in a particular salon in which to operate; such individuals are considered insureds only related to liability arising out of barber and stylist services. Language related to violation of statutes, ordinances or regulations of cosmetologists is removed. Replaces BP 0721 01 04.

 Veterinarians’ Professional Liability Coverage (BP 0732 01 15). This endorsement covers acts, errors, or omissions arising out of the insured’s profession as a veterinarian. Included as well is coverage for the insured’s serving as a member of any accreditation committee, review board, or similar professional committee. The 2015 form excludes consequential injury to a spouse, child, parent, sibling of fellow employees. Occurrence is defined as acts or omissions arising out of the rendering or failure to render professional services, including serving as a member of an accreditation committee, review board or similar professional committee. Exclusions are added for criminal or fraudulent acts committed by or at the direction of the insured, negligence or wrongdoing in supervision, hiring, training of another person if the injury/damages arises out of criminal or fraudulent acts, or liability for the theft of any animals. Replaces BP 0732 01 04.

 Printers’ Errors and Omissions Liability (BP 0733 01 15). This endorsement provides liability coverage for bodily injury, property damage, and personal and advertising injury arising out of negligent acts, omissions, or errors in the course of providing “printing services.” “Printing services” is a defined term, and means only those activities “normal to the Graphic Arts Industry or the Printing and Publishing Industries involved in printing operations.” There is no coverage for willful, dishonest, fraudulent, or negligent acts, or plagiarism, infringement of copyright, etc. Coverage is thus limited to such actions as, say, negligently omitting a line in a book. The 2015 form removes the definition of printing services and makes some minor revisions for clarification. Replaces BP 0733 01 04.

Funeral Directors’ Professional Liability Coverage (BP 0741 01 15). Adds coverage for bodily injury, which is amended to include mental anguish, and property damage arising out of rendering or failure to render professional services in connection with the insured’s profession as a funeral director. For purposes of the endorsement, a funeral director is a person whose business activities include embalming, burial, care, handling, or disposition of deceased human bodies. The definition of insured is revised, the exclusion for criminal or fraudulent acts is revised, the exclusion for liability under contract is revised, and language explaining that the each occurrence limit subject to the general aggregate limit is the most paid for damages under coverages L and P and medical expenses due to a single personal advertising injury in one occurrence are new in the 2015 form. Replaces BP 0741 01 04.

 Amending the Pollution Exclusion

 The AAIS current businessowners program adds endorsements that significantly alter the BP 0100 and BP 0200 exclusions for liability arising out of pollutants.

 Pollution Exclusion with Exception for a Short-Term Pollution Event (BP 0745 01 12). This endorsement amends the pollution exclusion by adding definitions for “short-term pollution event” and “underground storage tank.” In the 2012 form the definition of “short-term pollution event” has been modified. A pollution occurrence during the policy period that begins and ends within forty-eight hours and does not originate from an underground storage tank is thus covered for liability for bodily injury or property damage. The insured must report the event to the insurer no more than fourteen days after the end of the occurrence. Replaces BP 0745 01 04.

 Pollution Exclusion with Exception for Designated Pollutants (BP 07 46 01 04). The pollutant that the insured wishes to have excepted from the pollution exclusion is scheduled in this endorsement. Therefore, bodily injury or property damage arising from it will be covered. The described pollutant must be used in the insured business’s operations.

 Total Pollution Exclusion (BP 0748 06 12). As its name implies, this endorsement eliminates completely any coverage for release of pollutants under the policy by deleting exclusion j. and replacing it with an exclusion stating the insurer will not pay for any bodily injury or property damage or any loss, cost, or suit demanding cleanup of pollutants. This exclusion has minor revisions in the 2012 version. Such an endorsement might be used with a business whose operations consisted of an office in a leased or rented space, where it was extremely unlikely that any pollutant exposure could ever arise. Replaces BP 0748 01 04.

 Total Pollution Exclusion with Exceptions for Heating Equipment and Hostile Fire (BP 0749 06 12). This endorsement is similar to the BP 0748 discussed earlier, but it contains an exception for bodily injury or property damage arising out of heating equipment or a hostile fire. This exception has been modified to include equipment used to heat, cool or dehumidify a building, or used to heat water for the buildings occupants in the 2012 version. Replaces BP 0749 01 04.

 Limited Pollution Liability Extension (BP 07 51 06 12). This endorsement makes the limited pollution coverage available in the businessowners forms subject to a separate aggregate limit, which must be shown on the endorsement. Minor rewording has occurred in the 2012 form. Replaces BP 0751 01 04.

 Liability Exclusions

 There are many endorsements that can be attached to the businessowners coverage forms to delete various liability exposures. From an underwriting perspective, there may be specific aspects of the named insured business that are unacceptable, or are best insured elsewhere. Or, there may be a single operation that the insured does not wish to cover because there is other insurance available. Following are some of the endorsements that may be attached to the businessowners forms.

 Exclusion—Fungus or Related Perils (BP 0676 06 12). “Fungus and related perils” means “fungus including but not limited to mold or mildew, a protest including but not limited to algae and slime mold, wet rot, dry rot, bacterium, or any chemical or compound released by one of these.” This definition has been modified in the 2012 version to add mildew, mold, and protists, and a few other wording changes exist as well. This endorsement eliminates coverage for bodily injury, property damage, or personal and advertising injury arising out of fungus or a related peril. There are exceptions for bodily injury or property damage arising out of the insured’s business as, say, a mushroom grower, or out of a food or beverage-borne bacterium. There are also exceptions if an insured’s employee sustains bodily injury in connection with the insured’s farming operations (to the extent bodily injury to an employee is covered by the policy), and if someone slips or falls because of the presence of or existence of fungus or a related peril. Replaces BP 06 76 01 04.

 Exclusion—Fungus or Related Perils/Contracting Operations (BP 06 77 06 12). This exclusion can be used to exclude any liability coverage for mold-related injury or damage arising out of the insured’s work. Injury or damage included in the products/completed operations work hazard is also excluded. The 2012 edition revises the definition of “fungus and related perils” to match the definition in the BP 0676 form. Added is an exclusion for personal and advertising injury that arises out of the insured’s work with fungus or related perils, as well as expenses to treat, test, abate or otherwise respond to such perils. Replaces BP 06 77 01 04.

 Limited Coverage for Loss by Fungus or Related Perils (BP 06 79 06 12). Attaching this endorsement provides a separate each occurrence limit and aggregate limit for bodily injury and property damage arising out of ingestion of, inhalation of, or physical contact with or exposure to fungus or related perils. As in the other fungi endorsements, this one has been modified to include the definition of “fungus or related perils” and to make some minor wording changes. Replaces BP 06 79 01 04.

 Exclusion—Exterior Insulation and Finish Systems (BP 06 78 01 04). Property damage resulting from improper installation or failure of exterior insulation and finish systems (EIFS) has been an issue for some time now. This exclusion can be attached to the businessowners forms to preclude coverage for bodily injury or property damage arising out of design, manufacture, installation, application, maintenance, etc., of these systems. Replaces BP 06 78 06 02.

 Liability Exclusion (Applying to all hazards in connection with Designated Premises, Operations, or Products) (BP 07 20 01 04). This endorsement can be used to exclude liability arising out of a premises, operations on the premises, or products originating from that premises. Coverage can also be excluded for a scheduled operation, including the products/completed work hazard arising from the operation. Replaces GL-210 Ed 2.0.

 Contractual Liability Limitation (BP 07 25 01 04). The definition of “covered contract” is deleted and replaced with a definition that eliminates coverage for “any part of any other contract or agreement relating to the conduct of ‘your’ business (including an indemnification of a municipality in connection with work done for the municipality) under which ‘you’ assume tort liability of another…” Replaces G:-903 Ed 2.0.

 Deletion—Coverage P Personal and Advertising Injury (BP 07 26 06 12). Coverage for injury or damage arising out of personal and advertising injury can be eliminated from the policy by attaching this endorsement. An exception is added in the 2012 form for exclusion w. under Coverage L. Replaces BP 0726 01 04.

 Deletion—Coverage M—Medical Payments Designated Classification or Premises (BP 07 39 01 04). Medical payments coverage can be excluded for certain locations or classifications. But if the insurer defends a claim or suit (for bodily injury), there is payment for first aid expenses incurred by the insured at the time of an accident to which the coverage applies.