We are adjusting an insurance claim where an ISO policy uses BP0003 dated 7/2013 endorsed by CBP 8000 dated 01/2015. The limit for Business Personal Property is $50,000 and the limit for Money and Securities Inside the Premises is $10,000 Additional Limit of Insurance.
The insured had $3,500 in cash, $750 in phone cards, $12,300 in lottery books as well as an additional $2,310.84 in assorted Business Personal Property stolen from the premises.
We are of the opinion that the lottery books and phone cards are business personal property as they were purchased by the insured and do not represent money and therefore are subject to the stated business personal property limit, not the money and securities limit. What is your opinion on this?
Additionally, is the $10,000 limit for Money and Securities considered an actual limit or extension of liability of the business personal property?
New Jersey Subscriber
This response is with respect to the coverage provided within BP 00 03 only. CBP 8000 dated 01/2015 appears to be a proprietary form, and since we do not have a copy of this form we cannot speak to its provisions.
With respect to the lottery books and phone cards, they meet neither the definition of money nor securities. Therefore, we agree that they should be considered business personal property and as such are subject to the stated business personal property limit, not the money and securities limit.
The Money and Securities provision is an Optional Coverage, subject to being shown in the Declarations with specific limits. This is a specific limit of insurance that applies to money and securities — there is no indication in the policy that this is an extension of the business personal property limit.
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