BP DS 01–BUSINESSOWNERS POLICY DECLARATIONS

(September 2022)

 

 

INTRODUCTION

The advisory insurance Services Office (ISO) Businessowners Policy Declarations summarizes and combines general policyholder information, property coverages, and general liability coverages. This is a suggested format because insurance companies usually develop their own declarations. However, the items listed below are required because they are used to trigger and/or explain coverage being provided in the coverage form. This analysis is of the 07 13 edition. Changes from the 01 10 edition are in bold print.

GENERAL SECTION

Identification

This part has spaces for the following entries:

Note: The policy period begins at 12:00 p.m. in some states.

Premises Information

This part has spaces for the following entries:

Note: The premises and building numbers assigned to the premises are used throughout all sections of the policy.

Insuring Agreement

This part states that insurance is provided to the named insured in return for it paying the premium. The insurance provided is as the Businessowners Coverage Form describes and is subject to all of its terms.

Description of Business

This part has spaces for two entries.

Note: This part of the declarations is used in Section II–Liability C. Who is an Insured to explain who the coverage form considers to be an insured. It is not used in Section I–Property. Multiple named insureds may mean that multiple forms of business are checked.

SECTION I–PROPERTY

Property Coverage Limits of Insurance

This part has spaces for seven entries. They are:

·         Type of Property. This is either building, business personal property, or both

·         Actual Cash Value option for building coverage. This is either a "yes" or "no" entry.

·         Automatic Increase Building Limit (Percentage). The automatic increase is 8% unless a different percentage is entered.

·         Business Personal Property Seasonal Increase Percentage. This is 25% unless a different percentage is entered

·         Limit of Insurance

Blanket Insurance

If blanket insurance coverage applies, spaces are provided to list or describe the type of property and the limit of insurance that applies to it.

Deductibles

This part displays the property deductibles that apply at each location per occurrence. Three different deductibles are available for each covered premises:

Optional Coverage–Equipment Breakdown Protection Coverage Deductibles

An entry in this part is required when Optional Coverage–Equipment Breakdown Protection is provided. The covered location, the optional deductible, or the optional revised time deductible is entered in the spaces provided.

Earthquake/Volcanic Action Percentage Deductible (07 13 change)

If earthquake and volcanic action coverage is provided under BP 10 03–Earthquake, the percentage deductible that applies to this coverage is entered in the space provided. The 07 13 edition deleted the specific reference to
BP 10 03.

Theft Limitations–Optional Higher Limits (Per Policy) (07 13 addition)

Theft coverage is limited for certain types of covered property. The theft limitation is increased by entries in this part. The description of property, the higher limit(s) that apply, and the additional premium for the higher limit(s) are entered in the spaces provided.

Additional Coverages

Section I–Property 5. Additional Coverages provides each of these coverages. This part allows the limit of insurance to be increased, the number of days of coverage to be extended, and for exemptions or coverages to be added. The modifications entered in the spaces provided replace the default values in the coverage form. They are not in addition to them.

The coverages are as follows:

Optional Higher Limits/Extended Number of Days (Per Policy)

Additional Coverage–Optional Higher Limits (Per Premises)

Entries in this part allow increase the Fire Department Service Charge limits of insurance beyond the default of $2,500. The premises number, the higher limit that applies, and the additional premium for the higher limit are entered in the spaces provided.

Additional Coverage–Business Income–Ordinary Payroll Additional Exemptions

Entries in this part place the listed job classifications and/or employees in the same category as officers, executives, etc. so as not to be subject to the ordinary payroll 60-day limitation under business income coverage.

Additional Coverage–Optional Higher limits (Per Classification)

Entries in this part increase the limit of insurance above $5,000 for Business Income from Dependent Properties. The class code that applies, the higher limit of insurance, and the additional premium are entered in the spaces provided.

Additional Coverage–Business Income from Dependent Properties (07 13 addition)

The insured can include or exclude coverage for Business Income from Secondary Dependent Properties by checking the Yes box or the No box.

Coverage Extensions–Optional Higher Limits (Per Classification)

Section I–Property 6. Coverage Extensions provides each of these coverages.

Optional Coverages

Note: Optional coverages must be selected by location. A supplemental endorsement is needed if there are more than two locations involved.

Coverages are selected by checking the appropriate box. They do not apply unless a box is checked. The location where coverage applies and the limit of insurance must be entered. If "Other" is checked, a description of the "Other" coverage must be entered. The coverages available that require an entry are:

Endorsements

Endorsements that apply to only the property section can be added in this part. The types of endorsements and required entries are as follows:

SECTION II–LIABILITY AND MEDICAL EXPENSES

Limits

The liability part begins with a listing of the location or locations covered. There are spaces for five limits of insurance:

Optional Coverages

There are four optional coverages. Coverage applies only if the box for the coverage selected is checked. The coverages and limits that may be entered are:

Deductible

The appropriate box must be checked if the Optional Property Damage Liability Deductible is to apply. The deductibles available are:

Endorsements

Endorsements that apply to only the liability section are listed . The types of endorsements and required entries are as follows:

PREMIUM

This part displays the total annual premium and the premium payment plan that applies for the annual term and at each anniversary for policies written for more than one year. The Advance (Deposit) Premium (if applicable) is shown in the space provided. The audit period and audit frequency for policies written subject to audit are also shown. The audit period can be Annually, Semi-annually, Quarterly, or Monthly.

COUNTERSIGNATURE OF AUTHORIZED REPRESENTATIVE

Spaces are provided for the authorized representative’s signature. The required entries are the representative’s name, title, and signature. The countersignature date must also be entered.

The remaining area may be used for the insurance company officers' facsimile signatures, if they are not elsewhere.