PROPERTY POLICIES · 6 MIN READ

BOP, Condominium Forms, and Inland Marine Floaters

The Businessowners Policy (BP 00 03) packages property and business liability for eligible small-to-medium businesses, and the exam tests both its built-in generosity and its endorsement library. Unlike the standard commercial property program, the BOP includes Business Income and Extra Expense automatically for up to 12 months with no coinsurance, and Section II Medical Payments carries a standard $5,000 each-person sublimit. Optional coverages add Money and Securities, Employee Dishonesty, and Outdoor Signs. Because the BOP excludes auto liability, the hired and non-owned auto endorsements (BP 04 96, BP 05 32, and variants) carve liability back for the named insured's vicarious exposure from rented autos and employees' personal cars used on company business — liability only, no physical damage, protecting the firm rather than the employee, and excess over the employee's own personal auto policy. BP 04 17 Equipment Breakdown Protection buys back mechanical breakdown, electrical arcing, and pressure-system perils as covered accidents to covered equipment, including resulting business income; the employment-related practices exclusion (BP 04 14) and off-premises utility endorsements round out the tested set. Condominium placements interlock two forms by reference to the condo declarations. CP 00 17 Condominium Association covers the building shell and common-area BPP, plus unit fixtures and improvements only if the declarations require the association to insure them. CP 00 18 Condominium Commercial Unit-Owners covers the unit owner's BPP and the improvements and betterments the declarations leave to the owner. The parallel landlord concept is Lessor's Risk Only: a non-occupant building owner insures the building via CP 00 10 with little or no BPP, carries CGL for premises liability, and lets tenants insure their own contents and improvements (tenants' improvements and betterments coverage, CP 04 60). Inland marine floaters handle property that moves or has special valuation needs. The Accounts Receivable form (IM 7050 series) pays sums the insured cannot collect after records are destroyed, plus record-reconstruction costs, excess collection expenses, and interest on bridging loans. Valuable Papers and Records, Computer Coverage (IM 7060), Signs, Theatrical Property, and contractors' outdoor-equipment floaters each answer a specific exposure, and Bailee's Customers coverage protects customers' property in the insured's custody — a goodwill-driven form that pays regardless of the bailee's legal liability. These floaters are typically open perils and often worldwide, which is exactly what the fixed-location commercial property forms are not.