©2016 STILLWATER INSURANCE GROUP
Business Owners Program
(BOP) Oregon
Table of Contents
Updated 03-20-17
About Stillwater Insurance
What’s New
Contact Information
Claims • Procedure
• Contact Numbers
• Letter of Experience
Verification
Submit Authority
Policy Submission • How to Start a Quote
• Quote Tutorial
Customer Service • Customer Service Rep role
• Commercial Underwriting referrals
Business Owner Policy Coverage • Building Coverage
• Business Personal Property (BPP)
• Business Income and Extra Expense
• Liability
• Medical Payments
• Defense Costs
• Tenants Fire Liability
• Deductibles
Mandatory Forms Coverage and Limits
Base Policy Coverage • Base Policy – Additional Property Coverages
• Base Policy Coverage Extensions Property and
Liability
Endorsements • Property Coverages
• Liability Coverages
• Additional Insured
• Applicable to Specific Classes
Eligibility • Grocery Stores and Supermarkets
• Processing and Service Risks
• Offices
• Self-storage Facilities
• Wholesale Risks
• Limited Cooking Restaurants
• Fast Food Restaurants
• Casual Dining Restaurants
• Fine Dining Restaurants
• Contractors
• Apartments
• Motels
• Convenience Food Stores
• Beauty & Nail Salon Coverage
Underwriting Guidelines • Insured/Applicant
• Amount of Insurance
• Structure
• Loss History
• Exposures
• Named Storm and Wildfire Underwriting
Procedures
• Underwriting Tiers
Miscellaneous Rules • Policy Term
• Policy Minimum Premium
• Additional Premium Changes
• Insured Request Cancellation
• Inflation Guard
• Expense Fee / Policy Fee
• Lessors Risk with Multiple Occupants
• Inspections
Discounts
Payments • Pay Plans
• Installment Fees
• Non Payment Cancel/Reinstatement
BOP FIRST Service Features • Billing
• Notes
• Policy History
About Stillwater Insurance Group
1
1
3
5
Stillwater Insurance Group consists of:
– Stillwater Insurance Company
– Stillwater Property and Casualty Insurance Company
– Stillwater Insurance Services, Inc.
Copyright © 2016 Stillwater Insurance Group all rights reserved. Stillwater Insurance Group, Stillwater
Insurance Services, Inc. and their logos are registered trademarks of Duval Holdings, Inc.
3
We’re committed to helping agencies grow with stable, easy -to-sell products carrying an A.M. Best “A- Excellent” rating; accurate rates; and, exceptional service.
Back to Table of Contents
Commercial BOP What’s New?
What’s New?
Important Updates are archived on FIRST and provide information on system changes to FIRST.
Click here to view the Important Updates – Archive.
4 Updated 03-20-17 Back to Table of Contents
Commercial BOP Contact Information
Contact Information
Underwriting & Submissions
Phone: 1.855.712.4114
Fax: 1.866.300.8027
Email: [email protected]
Service Hours
Customer Service Representatives are available to
meet your service needs and for technical
assistance:
Monday - Friday 8:00am - 9:00pm Eastern, and
Saturday 8:00am – 3:00pm Eastern.
Service & Endorsements
Phone: 1.855.712.4114
Fax: 1.866.300.8027
Email: [email protected]
Mailing Address
Stillwater Insurance Group
P.O. Box 45126
Jacksonville, FL 32232-5126
Physical Address (for Overnight deliveries)
Stillwater Insurance Group
4905 Belfort Rd, STE 110
Jacksonville, FL 32256
Claims
Toll Free: 1.800.220.1351
Fax Number: 1.800.491.7683
Email: [email protected]
Claims Mailing Address
Stillwater Insurance Group
12500 I Street, STE 100
Omaha, NE 68137
5 Updated 03-20-17 Back to Table of Contents
Commercial BOP Claim Procedures
Claims Procedure
All claims should be immediately reported to Stillwater Claims
Service.
For fast claims service, and to completely eliminate your time
involved in processing claims forms, please instruct your
insureds and claimants to call our claims department directly.
Remember, you have no claims settlement authority.
General Information:
• Toll-free Claims: 1.800.220.1351.
• Stillwater Staffed::
– Monday - Friday 8:00am - 8:00pm ET
– Saturday 9:00am - 6:00pm ET
– After hours, Lynx Services LLC answers the line taking
first notice of losses and providing limited remediation
guidance (in the event of water damage, etc.). Note,
they cannot verify coverage. Lynx Services LLC is
available 24/7.
• If there is a severe emergency or loss, Lynx Services can put
a Stillwater adjuster in touch with your client.
• We offer a translation service – including dozens of languages
such as Hmong, Farsi, Punjabi, Mandarin, Cantonese and
Vietnamese.
Claims Contact Numbers:
• Phone 1.800.220.1351
• Fax 1.800.491.7683
• Email: [email protected]
Letter of Experience(LOE)
Stillwater Insurance is able to provide a letter that shows
the insured’s Loss History while insured with Stillwater
Insurance Group.
Send requests to: [email protected]
or via fax: 1.800.491.7683
• Please include policy numbers.
• Allow 24 - 48 hours to process.
• Letters of Experience will be emailed.
• Include other party contact information, if an LOE
needs to be sent to others.
6 Updated 03-20-17 Back to Table of Contents
Commercial BOP Verification
7
File Maintenance and Audit Requirements
Producers are required to maintain relevant
documentation for a period of seven years after policy
expiration. Agents should expect occasional file audits to
confirm required signatures and agency file
documentation. Namely, these documents are required
to be maintained in agency records:
• Signed applications
• Signed EFT Authorization when this pay plan is used
• Letters of Experience related to claims.
• Copy of support documents for discounts
Verification
As a part of new business process we may utilize third-party
data sources to provide or verify information, including:
• Public Records Data
• NCF – National Credit File. This helps determine
Insurance Bureau Score(IBS).
Our quote process recognizes underwriting issues – in turn it
may create an underwriting referral or may result in certain
risks being declined based upon eligibility or acceptability
rules.
Contact customer service at 1.855.712.4114 if you have
questions with respect to report information.
Updated 03-20-17 Back to Table of Contents
Commercial BOP Submit Authority/Policy Submission
Submit Authority
• Submit authority (or binding authority) may be
suspended for new business submissions or
requests for increased coverage endorsements
during periods of imminent danger from natural
disasters, or when the National Weather Service
has issued a severe weather warning.
• Types of natural disasters include, but are not
limited to, Earthquake, Earth movement (landslide,
mudslide, sinkhole, etc.), Wild Fire, Hurricane,
Tropical Storm, Tornado, and Flood.
• We reserve the right to suspend submission
authority as we deem fit, and as allowed by state
regulations and emergency orders.
• In the event of such suspension, we will issue a
moratorium on FIRST. During moratoriums no
new business or increased coverage
endorsements may be submitted.
Application Submission
FIRST is a real-time Quoting and Underwriting system
designed to assist our Producers in quoting and issuing
insurance policies. This system provides an easy way of doing
business by indicating whether risks are eligible and allows
producers to instantly issue policies.
Risk Acceptability
Responses to questions during quoting will determine if there
are underwriting eligibility conflicts. Producers do not have
authority to submit coverage for any property exhibiting a
conflict with underwriting rules.
We may be contacted for prior approval regarding acceptability
in gray areas. Policy submission is subject to acceptance of
the risk based on our product design and regulatory filings.
Requests or questions should be emailed to
Submitting
Policies are only valid when they are issued on FIRST with a
policy number.
Click below for information on starting a Quote on FIRST:
How to Start a BOP Quote
8 Updated 03-20-17 Back to Table of Contents
Commercial BOP Start a Business Owners Quote
9
How to Start a Business
Owners Quote
Click on New Business Owners
Quote and then enter the zip code of
the business location.
BOP Quoting Tutorial
Click below for an Online Quote Tutorial:
Updated 03-20-17 Back to Table of Contents
Commercial BOP Customer Service Role
10 Updated 03-20-17 Back to Table of Contents
Customer Service Scope
Customer Service provides Commercial Lines support via phone at 1.855.712.4114 or using our online chat capability within the quoting
system. All CSRs are able to respond to calls and chats.
CSR Role
CSRs have authority to help with the following:
1. Billing – answer inquiries, accept payments, resolve billing issues
2. Acceptability & Eligibility – advise agents on qualification rules for acceptable business
3. On-line Business Class Selection – assist with business class selection and rating questions.
4. Coverage & Endorsements – answer questions about optional coverages and endorsements. CSRs will not process
changes to policies or make coverage recommendations. Requests for that type of information should be sent to
5. FIRST User Interface Functions – guide users through screens and fields in our quoting tool.
Procedures
• CSRs may only speak with agents, applicants and policyholders – all other callers will be referred to agents.
• Calls will be transferred to the Commercial Underwriters if questions or service requests exceed CSR roles above. If a Commercial
team member is not available, CSRs ensure that the team is notified that the agent needs assistance.
• Emails sent to [email protected] should include:
1. Contact information – agent name, agency name, agent phone number and agent email address.
2. Policyholder’s name
3. Quote or policy number
4. Description of question/request with appropriate details
5. Desired outcome
Commercial BOP BOP Core Coverages
11
Building Coverage Business Personal Property (BPP) Liability
Coverage for the buildings/structures identified in the
declarations, as well as fixtures, permanently installed
machinery and equipment, outdoor signs attached to
buildings, etc.
Stillwater BOP cannot provide coverage for multiple
buildings on the same policy at this time. This is a
system constraint – multiple policies may be written to
accommodate these risks.
Each building/structure has its own limit of insurance,
reflecting 100% of its replacement cost .
Not every business will need Building Coverage. For
example, a tenant that leases their building or business
space would likely not need to insure the building.
• BOPs may be issued without Building Coverage,
but must have BPP coverage. Minimum BPP
coverage allowed is $2,000.
Outdoor Property
• Fences, antennas, signs not attached to buildings
have a sublimit of $2,500.
• Shrubs/trees/plants covered to a $1,000 sublimit .
Coverage for the personal property used in the
business, as well as property of others in the
insured’s care, leased personal property the
insured is contractually responsible to insure, etc.
The limit of insurance should reflect 100% of the
replacement cost of the personal property
being insured.
• The BPP or Contents Coverage Limit of
Indemnity is based on the replacement cost of
the contents.
• The coverage amount is NOT based on a
percentage of the Building Coverage
Note: Not every business will need BPP
Coverage. For example, a landlord that leases the
building to a tenant may not need to insure any
personal property.
A Stillwater BOP must have at least one of the
following:
• Building or BPP coverage; it cannot have
neither. If a policy does not have Building
coverage, the minimum limit of insurance
for BPP is $2,000
Covers damages for which the insured is legally liable
subject to a per occurrence limit and a per policy period
aggregate limit.
Available occurrence limits are $300K, $500K, $1M, and
$2M.
The per policy period aggregate limit is two times the
occurrence limit and applies separately for claims from the
products-completed operations hazard* and for claims from
all other covered liability hazards
Example: An insured purchases an occurrence liability limit
of $300K. That means their Products-Completed Operations
Aggregate Limit is $600K and their General Liability
Aggregate Limit is $600K.
This is expressed as 300/600/600.
Three months into the policy period, they have a products-
completed operations claim with damages of $500K. Since
the per occurrence limit is only $300K, we would only pay
$300K for that claim. This also means that they only have
$300K for the rest of the policy period to cover any future
products-completed operations related claims. However,
they still have $600K that can be used for any other type of
covered liability claim (subject to the $300K per occurrence
limit).
Business Income and Extra Expense Deductibles Medical Payments
Coverage for loss of Business Income resulting from
suspension of business operations due to direct
damage from a covered loss to property at the insured
premises and/or for expenses incurred in an effort to
avoid or minimize the suspension of business
operations is included with every policy.
There is no dollar limit; in general, coverage exists for
12 months from the date of damage.
The base property deductible is $1,000 which may
be increased to $2,500, $5,000, or $10,000.
• Optional Windstorm/Hail percentage
deductibles of 1%, 2%, and 5% are available.
$10K per person for injuries on the insured’s premises or
involving the insured’s operations regardless of fault.
Defense Costs
Coverage for cost of defending lawsuits for covered
damages. There is no dollar limit; however, we do not owe
for additional defense costs once the applicable liability limit
has been exhausted by payment of judgements or
settlements.
Tenants Fire Liability $50K in coverage for property damage by fire to a premises
rented by the insured with increased limits of $100K and
$300K available.
Back to Table of Contents Updated 03-20-17
Commercial BOP Mandatory Forms, Coverage, & Limits
12 Updated 03-20-17
• Business Owners Coverage Form
• Exclusion – Access or Disclosure of Confidential or
Personal Information and Data-related Liability
• Exclusion of Loss Due to By-products of Production or
Processing Operations Endorsement
• Exclusion - Punitive Damages
• Exclusion – Employment –Related Practices
• Arson Reward
• Lock Replacement
• Cap on Losses from Certified Acts of Terrorism
• Blanket Additional Insured and Blanket Insurance
Subrogation Waiver
• * Contractors' Installation, Tools and Equipment Coverage
Endorsement
• ** Condominium Commercial Unit-Owners Coverage
• *** Self-Storage Facilities Endorsement
Back to Table of Contents
Mandatory Forms Coverages & Limits: In addition to the main coverages, the following coverages are included in the Business Owners Policy at no additional premium (except
where noted below):
Please click on a link to view a brief Mandatory Form description.
Note: The descriptions of coverage are not intended to be complete. Please refer to the policy and endorsements for complete
descriptions of each coverage.
* When insuring eligible contractor risks, this Endorsement must be attached. Subject to additional premium.
** When insuring eligible commercial condominium unit owners, this Endorsement must be attached
*** When insuring eligible self-storage facility risks, this Endorsement must be attached. No additional premium for the Base Coverage.
Commercial BOP Mandatory Forms, Coverage, & Limits
13
Updated 03-20-17
Business Owners Coverage Form: (BP 00 03)
Property Coverage
• Coverage is provided for direct physical loss or damage to Building and/or
Business Personal Property, as well as for Business Income and Extra
Expense.
Liability and Medical Expenses Coverage
• Liability and Medical Expenses Coverage is provided on a comprehensive
occurrence basis for all operations and premises owned, operated or leased
by the insured. Coverage includes Bodily Injury, Property Damage, Medical
Expenses (subject to an additional "per person" limit), Personal and
Advertising Injury and Tenant's Fire Liability Coverage (subject to a separate
limit).
Limits of Insurance
• Liability and Medical Expenses Coverage is provided at a basic limit of
insurance of $300,000 per occurrence which may be increased to either
$500,000, $1,000,000, or $2,000,000.
• An aggregate limit of twice the per occurrence limit applies for all hazards
other than Products-Completed Operations.
• An aggregate limit of twice the per occurrence limit applies separately for
Products-Completed Operations hazard.
• Tenant's Fire Liability Coverage is provided at a basic limit of $50,000, with
increased limits of $100,000 and $300,000 available, and is a separate limit.
• A "per person" Medical Expenses limit of $10,000 applies which may be
decreased to $5,000.
Deductibles
• The base property deductible is $1,000 which may be increased to $2,500,
$5,000, or $10,000.
• The policy’s property deductible is applicable to all property coverages
unless otherwise noted in the description for a specific coverage.
• There is no deductible for liability coverages unless otherwise noted in the
description for a specific coverage.
• Optional Windstorm/Hail percentage deductibles of 1%, 2%, and 5% are
available. (Use SB 03 01 for Wind/Hail deductibles)
Back to Mandatory Form Menu
Exclusion – Access or Disclosure of Confidential or
Personal Information and Data-related Liability (BP 15 05
or BP 15 06)
Description of Coverages
• Exclusion – Access or Disclosure of Confidential or Personal
Information and Data-related Liability – Limited Bodily Injury
Exception Not Included Endorsement: (BP 15 05) - This endorsement
excludes liability arising out of any access to or disclosure of any person's
or organization's confidential or personal information.
• Exclusion – Access or Disclosure of Confidential or Personal
Information (Personal and Advertising Injury Only) Endorsement: (BP
15 06) - This endorsement excludes liability arising out of any access to or
disclosure of any person's or organization's confidential or personal
information only with respect to personal and advertising injury.
Note/Rule
• BP 15 05 should be attached to all policies unless Electronic Data Liability
– Broad Coverage BP 05 96 is attached to the policy; in which case BP 15
06 should be attached in lieu of BP 15 05.
Premium Modification
• There is no premium impact associated with either of these.
Exclusion of Loss Due to By-products of Production or
Processing Operations Endorsement: (SB 04 17)
Description of Coverage
• This endorsement explicitly excludes coverage for Property Damage or
Business Interruption resulting from any substance released in the course
of production or processing operations. SB 04 17 must be attached to all
policies.
Premium Modification
• There is no premium impact associated with this endorsement.
Back to Table of Contents
Commercial BOP Mandatory Forms, Coverage, & Limits
14
Updated 03-20-17
Exclusion - Punitive Damages: (SB 04 03)
Description of Coverage
• This endorsement explicitly excludes coverage for punitive or exemplary
damages imposed on any insured. SB 04 03 must be attached to all
policies.
Premium Modification
• There is no premium impact associated with this endorsement.
Exclusion – Employment – Related Practices: (BP 04 17)
Description of Coverage
• This endorsement explicitly excludes coverage bodily injury and personal
injury arising out of employment-related practices. BP 04 17 must be
attached to all policies.
Premium Modification
• There is no premium impact associated with this endorsement.
Arson Reward: (SB 04 02)
Description of Coverage
• Coverage is provided for the payment of a reward on the named insureds
behalf for information leading to an arson conviction in connection with a fire
at a covered property, subject to a limit of 10% of the amount paid for the
direct physical loss, or damage to, the covered property up to a maximum of
$10,000. SB 04 02 must be attached to all policies.
Premium Modification
• There is no premium impact associated with this endorsement.
Note:
• Do not attach SB 04 02 if BP 07 78 (Restaurants) is attached.
Lock Replacement: (SB 04 06)
Description of Coverage
• $1,000 of coverage is provided for the cost of replacing locks on an insured
premises made necessary by a lost or stolen key. SB 04 06 must be
attached to all policies.
Premium Modification
• There is no premium impact associated with this endorsement.
Note:
• Do not attach SB 04 06 if BP 07 78 (Restaurants) is attached.
Cap on Losses from Certified Acts of Terrorism: (BP 05 23
and BP 05 15)
Description of Coverage
• BP 05 23 specifies that covered losses resulting from certified acts of
terrorism are subject to the statutory cap on liability for losses as established
by the Terrorism Risk Insurance Act (TRIA). BP 05 15 discloses information
related to the Terrorism Risk Insurance Act. BP 05 23 and BP 05 15 must be
attached to all policies.
Premium Modification
• There is no premium impact associated with these endorsements.
Blanket Additional Insured and Blanket Insurance
Subrogation Waiver: (SB 04 36)
Description of Coverage
• Blanket Additional Insured - SB 04 36 automatically provides coverage for
any entity having a written agreement to be listed as an Additional Insured.
• Insurance Subrogation Waiver - declares that when there is an Additional
Insured, our policy is primary , and we will not seek contribution from that
Additional Insured’s carrier.
Premium Modification
• There is no premium impact associated with this endorsement.
Note
• See Miscellaneous Rules page for more details.
Back to Table of Contents
Back to Mandatory Form Menu
Commercial BOP Mandatory Forms, Coverage, & Limits
15
Contractors' Installation, Tools and Equipment Coverage
Endorsement: (SB 04 11)
Description of Coverage
When insuring eligible contractor risks, Endorsement SB 04 11 must be attached.
Coverage includes the following:
• Contractors’ Installation Coverage – extends the insurance that applies to
business personal property to apply to contractors' materials, supplies,
equipment, machinery, fixtures and temporary structures while at any job site
not owned, leased or operated by the insured contractor, awaiting and during
installation, or awaiting acceptance by the purchaser, in transit, or at a
temporary storage location.
• Contractors’ Tools and Equipment Coverage - extends the insurance that
applies to business personal property to apply to contractors' tools and
equipment owned by the insured while temporarily at a premises not owned,
leased or operated by the insured or while in transit. This coverage also applies
to non-owned tools and equipment the insured leases for a term of six months
or more.
• Non-Owned Tools and Equipment Coverage – provides coverage for non-
owned tools and equipment leased or rented from others (other than
employees' tools) that are in the insured's care, custody or control. This
coverage does not apply to non-owned tools and equipment leased for a term
of six months or more.
• Employees’ Tools Coverage – provides coverage for employees' tools which
are used in connection with the operations of the insured.
Limits of Insurance
• Contractors’ Installation Coverage:
o Property at each covered job site: $25,000
o Property at all covered job sites combined: $75,000
o Property in transit: $5,000
o Property at a “temporary storage location”: $5,000
• Contractors’ Tools and Equipment Coverage: $25,000
o Sublimit for any one tool or piece of equipment is $2,000
• Non-Owned Tools and Equipment Coverage: $25,000
• Employees’ Tools Coverage: $10,000
o Sublimit for tools of any one employee is $100 per tool and $500 for all tools
of any one employee.
Deductible
• Policy’s property deductible is applicable.
Premium Determination
• Premium is dependent on the policy’s property deductible.
Updated 03-20-17
Condominium Commercial Unit-Owners Coverage (BP 17 02)
Description of Coverage
• Coverage is provided for commercial condominium unit owners.
Premium Determination
• There is no premium associated with this endorsement.
Note
• When insuring eligible commercial condominium unit owners BP 17 02 must
be attached.
Self-Storage Facilities Endorsement: (BP 07 12)
Description of Coverage
When insuring eligible self-storage facility risks, Endorsement BP 07 12 must be
attached. This endorsement revises several provisions of the property and liability
coverages as follows:
• Property Coverage- This endorsement adds Accrued Rental Charges as a
component of Business Income Coverage and amends the Employee
Dishonesty coverage (if applicable) to include personal property of your
customers.
• Liability Coverage -This endorsement provides coverage for Customers'
Goods Legal Liability and coverage for Sale and Disposal Liability. Exclusions
specific to these coverages are added. The pollution exclusion is also
amended to exclude pollutants brought onto the location by customers. Any
loss covered under Section I – Property is excluded.
Limits of Insurance
• A $25,000 annual limit applies to the Sale and Disposal Liability coverage,
while the insured must choose a per occurrence limit between $50,000 and
$100,000 for the Customers’ Goods Legal Liability coverage.
Deductible
• A $250 per occurrence deductible applies to the Customers’ Goods Legal
Liability coverage.
Premium Determination
• No premium impact for the base limits ($25,000 for Sale and Disposal and
$50,000 for Customers’ Goods). There is only a premium impact if a limit
greater than $50,000 is chosen for Customers’ Goods, and then the premium
is dependent on the amount over $50,000 chosen.
Back to Table of Contents Back to Mandatory Form Menu
Commercial BOP Base Policy Coverage
16 Updated 03-20-17 Back to Table of Contents
Base Policy – Additional Property Coverage
• Debris Removal
• Limited Coverage for “Fungi”, Wet or Dry Rot
• Preservation of Property
• Fire Department Service Charge
• Collapse Coverage
• Water Damage, Other Liquids, Powder, or Molten
Material Damage
• Business Income – Ordinary Payroll
• Business Income – Extended Period of Indemnity
• Extra Expense
• Pollutant Clean-Up and Removal
• Civil Authority
• Money Orders and Counterfeit Money
• Forgery or Alteration
• Increased Cost of Construction
• Business Income from Dependent Properties
• Glass Expense
• Fire Extinguisher System Recharge
• Electronic Data Damage
• Interruption of Computer Operations
Base Policy Coverage Extensions -
Property and Liability
Coverage Extensions Property
• Newly Acquired or Constructed Property – Buildings
• Newly Acquired or Constructed Property – Business
Personal Property
• Personal Property Off-Premises
• Outdoor Property
• Personal Effects
• Valuable Papers and Records
• Accounts Receivable
• Business Personal Property Temporarily in Portable
Storage Units
Coverage Extensions Liability
• Supplementary Payments
Base Policy Coverage
The following coverages are included in the Base Policy. Coverage is provided for no additional premium.
Please click on a link to view a brief coverage description.
Note: The descriptions of coverage are not intended to be complete. Please refer to the policy and endorsements for complete
descriptions of each coverage.
Commercial BOP Base Policy – Additional Property Coverage
17
Debris Removal: Description of Coverage
• Coverage is provided for removal of debris that is caused by or results from a
covered cause of loss at a limit of 25% of the sum of the deductible plus the
amount paid for the direct physical loss or damage to the covered property.
However, if the combined amounts of the direct physical loss or damage and
the debris removal exceed the limit of insurance, an additional amount of up
to $25,000 for Debris Removal is available.
Deductible
• The policy's property deductible, shown in the Declarations, applies.
Premium Determination
• No additional premium as the only coverage is provided via the base policy.
Limited Coverage for “Fungi”, Wet or Dry Rot: Description of Coverage
• $15,000 (per year aggregate) of coverage for loss or damage from fungi, wet
rot, or dry rot when the loss or damage is the result of a “specified cause of
loss” other than fire or lightning that occurs during the policy period.
Deductible
• The policy's property deductible, shown in the Declarations, applies.
Premium Determination
• No additional premium as the only coverage is provided via the base policy.
Preservation of Property: Description of Coverage
• Coverage is provided to covered property that suffers direct physical loss or
damage while it is being moved or while temporarily stored at another
location, when it was necessary to move that property to preserve it form
loss or damage by a covered cause of loss. Loss or damage must occur
within 30 days after the property is first moved.
Deductible
• The policy's property deductible, shown in the Declarations, applies.
Premium Determination
• No additional premium as the only coverage is provided via the base policy.
Fire Department Service Charge:
Description of Coverage
• $2,500 (at each premises) of coverage for fire department service charges is
provided in the base Business Owners coverage form. Increased limits are
not offered.
Deductible
• No deductible applies.
Premium Determination
• No additional premium as the only coverage is provided via the base policy.
Collapse Coverage:
Description of Coverage
• Coverage is provided for direct physical loss or damage to covered property
(building and/or personal property) from the collapse of a building or a part of
a building
Deductible
• The policy's property deductible, shown in the Declarations, applies.
Premium Determination
• No additional premium as the only coverage is provided via the base policy.
Water Damage, Other Liquids, Powder, or Molten Material
Damage: Description of Coverage
• Coverage is provided for the cost to tear out and replace any part of the
building or structure in order to repair damage to a system from which water
or other substance escaped, when there is a covered loss caused by such
substance.
Deductible
• The policy's property deductible, shown in the Declarations, applies.
Premium Determination
• No additional premium as the only coverage is provided via the base policy.
Back to Table of Contents
Back to Base Coverage Menu
Updated 03-20-17
Commercial BOP Base Policy – Additional Property Coverage
18
Business Income – Ordinary Payroll: Description of Coverage
• 60 days of coverage for ordinary payroll expenses is provided in the base
Business Owners coverage form. Additional days of coverage are not
offered.
Deductible
• No dollar deductible applies; however a 72 hour “time deductible” is
applicable.
Premium Determination
• No additional premium as the only coverage is provided via the base policy.
Business Income – Extended Period of Indemnity: Description of Coverage
60 days of coverage for loss of business income that follows the insured’s
resumption of operations is provided in the base Business Owners coverage
form. Additional days of coverage are not offered.
Deductible
No dollar deductible applies; however a 72 hour “time deductible” is applicable.
Premium Determination
No additional premium as the only coverage is provided via the base policy.
Extra Expense: Description of Coverage
• 12 months of coverage is provided for certain extra expenses incurred in an
effort to avoid or minimize the suspension of business following physical
loss or damage to property at the described premises. This coverage is not
subject to the limits of insurance.
Deductible
• No deductible applies.
Premium Determination
• No additional premium as the only coverage is provided via the base policy.
Pollutant Clean-Up and Removal: Description of Coverage
• $10,000 (per year) of coverage is provided for expenses to extract pollutants
from land or water at the described premises, if the discharge of the pollutants
is a result of a covered cause of loss occurring during the policy period.
Deductible
• The policy's property deductible, shown in the Declarations, applies.
Premium Determination
• No additional premium as the only coverage is provided via the base policy.
Civil Authority: Description of Coverage
• 4 weeks of Business Income and Extra Expense coverage is provided for an
action of civil authority that prohibits access to the described premises due to
direct physical loss of or damage to the property, other than at the described
premises, caused by or resulting from any covered cause of loss.
Deductible
• No dollar deductible applies; however a 72 hour “time deductible” is applicable
for Business Income.
Premium Determination
No additional premium as the only coverage is provided via the base policy.
Money Orders and Counterfeit Money: Description of Coverage
• $1,000 of coverage is provided for loss resulting from the insured accepting
“counterfeit money” and/or money orders that are not paid upon presentation.
Deductible
• The policy's property deductible, shown in the Declarations, applies.
Premium Determination
• No additional premium as the only coverage is provided via the base policy.
Back to Table of Contents
Back to Base Coverage Menu
Updated 03-20-17
Commercial BOP Base Policy – Additional Property Coverage
19
Forgery or Alteration: Description of Coverage
• $2,500 of coverage for loss due to forgery or alteration of any check, draft,
promissory note, bill of exchange, etc. issued by the insured or someone
impersonating the insured, or by the insured’s agent or someone
impersonating the insured’s agent is provided in the base Business Owners
coverage form. Optional higher limits of $5,000, $10,000, $25,000, or
$50,000 are available.
Deductible
• $500 “optional coverage deductible” applies.
Premium Determination
• Additional premium is dependent on the limit of insurance selected. No
additional premium for the $10,000 that is provided via the base policy.
Dependency
1. Optional increased limits for Forgery or Alteration Coverage may be
selected only if optional Employee Dishonesty Coverage is also selected.
2. The optional increased limit selected for Forgery or Alteration Coverage
and the optional increased limit for Employee Dishonesty Coverage must
be the same.
Increased Cost of Construction: Description of Coverage
• $10,000 of coverage is provided for increased costs incurred to comply with
the minimum standards of an ordinance or law. This coverage only applies to
costs related to damaged property; it does not cover demolition or repairs to
any undamaged property. Policy must have Building coverage for this
coverage to apply.
Deductible
• The policy's property deductible, shown in the Declarations, applies.
Premium Determination
• No additional premium as the only coverage is provided via the base policy.
Business Income from Dependent Properties: Description of Coverage
• $5,000 of coverage for the loss of business income due to physical loss or
damage at the premises of a dependent property is provided in the base
Business Owners coverage form. Increased limits are not offered.
Deductible
• No dollar deductible applies; however a 72 hour “time deductible” is
applicable.
Premium Determination
• No additional premium as the only coverage is provided via the base policy.
Glass Expense: Description of Coverage
• Coverage is provided for the expense of putting up temporary plates or
boarding up openings when repair or replacement of damaged glass is
delayed and/or the expense of removing or replacing obstructions in order to
repair/replace damaged glass.
Deductible
• The policy's property deductible, shown in the Declarations, applies.
Premium Determination
• No additional premium as the only coverage is provided via the base policy.
Fire Extinguisher System Recharge: Description of Coverage
• $5,000 of coverage is provided for the cost of recharging or replacing fire
extinguishers and/or fire extinguishing systems that have been discharged, as
well as for loss or damage to covered property occurring as a result of an
accidental discharge of a fire extinguisher or fire extinguishing system.
Deductible
• No deductible applies.
Premium Determination
• No additional premium as the only coverage is provided via the base policy.
Back to Table of Contents
Back to Base Coverage Menu
Updated 03-20-17
Commercial BOP Base Policy – Additional Property Coverage
20
Electronic Data Damage: Description of Coverage
• Electronic data (other than electronic data which is integrated in and
operates or controls the building's elevator, lighting, heating, ventilation, air
conditioning or security system) is Property Not Covered, except as
provided under this Additional Coverage, which provides coverage for the
cost to replace or restore electronic data that has been destroyed or
corrupted by a Covered Cause Of Loss. Coverage is subject to an annual
aggregate limit of $10,000. The aggregate limit is the maximum payable in
any one policy year, regardless of the number of occurrences of loss or
damage or the number of premises, locations or computer systems
involved. The Additional Coverage – Electronic Data does not apply to
electronic data which is integrated in and operates or controls a building's
elevator, lighting, heating, ventilation, air conditioning or security system,
because such electronic data is Covered Property as part of coverage on
the building. Increased limits are not offered. Policy must have BPP
coverage for this coverage to apply.
Deductible
• The policy's property deductible, shown in the Declarations, applies.
Premium Determination
• No additional premium as the only coverage is provided via the base
policy.
Interruption of Computer Operations: Description of Coverage
• $10,000 of coverage for Business Income and Extra Expenses applicable to
loss sustained in a suspension of operations due to destruction or corruption
of electronic data by a Covered Cause of Loss is provided in the base
Business Owners coverage form. The aggregate limit is the maximum
payable in any one policy year, regardless of the number of interruptions or
the number of premises, locations or computer systems involved. This
coverage does not apply when loss or damage to electronic data involves
only electronic data which is integrated in and operates or controls a
building's elevator, lighting, heating, ventilation, air conditioning or security
system, because such electronic data is Covered Property as part of
coverage on the building. Increased limits are not offered. Policy must have
BPP coverage for this coverage to apply.
Deductible
• No dollar deductible applies; however a 72 hour “time deductible” is
applicable for Business Income (not Extra Expense).
Premium Determination
• No additional premium as the only coverage is provided via the base policy.
Back to Table of Contents
Back to Base Coverage Menu
Updated 03-20-17
Commercial BOP Base Policy Coverage Extensions –Property
21
Newly Acquired or Constructed Property - Buildings: Description of Coverage
• $250,000 of temporary property coverage for new buildings while being built
on the described premises and/or buildings acquired at a premises other
than one that is described on the declarations; as long as the acquired
building is intended for a similar use as that of the building described in the
declarations or is intended for use as a warehouse. This temporary
coverage expires 30 days after the acquisition of the property or 30 days
after the beginning of construction.
Deductible
• The policy's property deductible, shown in the Declarations, applies.
Premium Determination
• No additional premium as the only coverage is provided via the base policy.
Newly Acquired or Constructed Property – Business
Personal Property: Description of Coverage
• $100,000 of temporary property coverage for Business Personal Property at
newly acquired premises and/or at newly constructed or acquired buildings
at a premises described in the declarations. This temporary coverage
expires 30 days after the acquisition of the property or 30 days after the
beginning of construction.
Deductible
• The policy's property deductible, shown in the Declarations, applies.
Premium Determination
• No additional premium as the only coverage is provided via the base policy.
Personal Property Off-Premises: Description of Coverage
• $10,000 of property coverage for covered property (other than money,
securities, valuable papers and records, or accounts receivable) while it is in
the course of transit or at a premises that the insured does not own, lease,
or operate.
Deductible
• The policy's property deductible, shown in the Declarations, applies.
Premium Determination
• No additional premium as the only coverage is provided via the base policy.
Outdoor Property: Description of Coverage
• $2,500 of coverage for outdoor property is provided under the Coverage
Extensions Section of the Business Owners Coverage Form. Increased limits
are not offered.
Deductible
• The policy's property deductible, shown in the Declarations, applies.
Premium Determination
• No additional premium as the only coverage is provided via the base policy.
Personal Effects: Description of Coverage
• $2,500 of property coverage for personal effects owned by the insured
and/or an officer, partner, employee, etc. of the insured. Tools or equipment
used in the insured’s business and/or loss or damage by theft is not covered.
Deductible
• The policy's property deductible, shown in the Declarations, applies.
Premium Determination
• No additional premium as the only coverage is provided via the base policy.
Valuable Papers and Records: Description of Coverage
• $10,000 of on-premises coverage and $5,000 of off-premises coverage is
provided for valuable papers and records owned by the insured or in the
insured’s care, custody, or control.
Deductible
• The policy's property deductible, shown in the Declarations, applies.
Premium Determination
• No additional premium as the only coverage is provided via the base policy.
Back to Table of Contents
Back to Base Coverage Menu
Updated 03-20-17
Commercial BOP Base Policy Coverage Extensions
Property / Liability
22
Coverage Extensions Property (cont.):
Accounts Receivable: Description of Coverage
• $10,000 of on-premises and $5,000 of off-premises coverage is provided for
loss or damage to the insured’s records of accounts receivable. Increased
limits (on-premises only) of $25,000, $50,000, and $100,000 are available
for additional premium. Policy must have BPP coverage for this coverage to
apply.
Deductible
• The policy's property deductible, shown in the Declarations, applies.
Premium Determination
• Additional premium is dependent on the limit of insurance selected. No
additional premium for the $10,000 that is provided via the base policy.
Business Personal Property Temporarily in Portable
Storage Units: Description of Coverage
• $10,000 of coverage is provided for Business Personal Property temporarily
stored in a portable storage unit located within 100 feet of the described
premises. This coverage is only valid for the first 90 days that the storage
unit is in place. Increased limits are not offered.
Deductible
• The policy's property deductible, shown in the Declarations, applies.
Premium Determination
• No additional premium as the only coverage is provided via the base policy.
Coverage Extension Liability:
Supplementary Payments: Description of Coverage
The following liability costs and/or expenses are in addition to the limit of
insurance.
• All expenses that we (the insurer) incur in defending a claim or suit against
the insured.
• Up to $250 for cost of bail bonds required because of accidents or traffic
violations arising out of the use of vehicles to which BI Liability coverage
applies.
• The cost of bonds to release attachments.
• Reasonable expenses the insured incurs at our (the insurer) request to assist
in the investigation of defense of a claim or suit. This includes up to $250/day
for time off from work.
• All court costs taxed against the insured in a suit, not including attorneys’
fees or attorneys’ expenses taxed against the insured.
• Prejudgment interest awarded against the insured. However, when an offer is
made to pay the Limit of Insurance, prejudgment interest will not be paid for
the period after that offer.
• Interest that accrues between the time a judgment is entered and
subsequently paid.
Deductible
• The policy's property deductible, shown in the Declarations, applies.
Premium Determination
• No additional premium as the only coverage is provided via the base policy.
Back to Table of Contents
Back to Base Coverage Menu
Updated 03-20-17
Commercial BOP Endorsements
23 Updated 03-20-17 Back to Table of Contents
Property Coverages
• Outdoor Signs
• Money and Securities
• Employee Dishonesty
• Equipment Breakdown
• Computer Fraud and
Funds Transfer Fraud
Coverage
• Loss Payable Clauses
• Ordinance or Law
• Spoilage Coverage
• Utility Services Coverage
• Vacancy Permit Coverage
• Identity Fraud Expense
Coverage
• Fine Arts Coverage
• Water Back-up and Sump
Overflow
• Increased Cost of Loss and
Related Expenses for
Green Upgrades
• Wind/Hail Exclusion
• Condo Commercial Unit-
owners Optional
Coverages
Additional Insured
• Blanket Additional Insured
and Blanket Insurance
Subrogation Waiver
Liability Coverages
• Abuse or Molestation
Exclusion
• Electronic Data Liability –
Broad Coverage
• Employee Benefits Liability
• Exclusion-Personal and
Advertising Injury
• Hired Auto and Non-owned
Auto Liability
• Employment-related
Practices Liability
• Limitation of Coverage to
Designated Premises or
Project
• Exclusion – Products
Completed Operations
• Exclusion – Personal and
Advertising Injury –
Lawyers
• Liquor Liability
Specific Classes
• Barber Shops and Hair
Salons Professional
Liability
• Beauty Salons
Professional Liability
• Funeral Directors
Professional Liability
• Optical and Hearing Aid
Establishments
Professional Liability
• Printer’s Errors and
Omissions Liability
• Veterinarians Professional
Liability
• Pastoral Counseling
Professional Liability
• Extended Medical
Payments Churches
• Residential Cleaning
Services
• Photography Endorsement • Restaurants Endorsement
Endorsements • All Endorsements to existing policies must be requested via fax or email:
• The following Endorsements are available depending on the class of Business.
Coverage can be purchased for additional premium.
Please click on a link to view a brief coverage description.
Note: The descriptions of coverage are not intended to be complete. Please refer to the policy and endorsements for complete
descriptions of each coverage.
Fax: 1.866.300.8027
Email: [email protected]
Commercial BOP Endorsements – Property Coverage
24
Outdoor Signs: Description of Coverage
• Coverage is available for outdoor signs which are the property of the insured
or the property of others in the care, custody and control of the insured.
Maximum limit is $25,000 with the ability to choose a lower limit.
Deductible
• $500 “optional coverage deductible” applies.
Premium Determination
• Premium is dependent on coverage limit selected.
Money and Securities: Description of Coverage
• Coverage for loss of money and/or securities from theft, destruction, or
disappearance both “on-premises” and “off-premises” is available as an
optional coverage at limits of $2,500, $5,000, or $10,000. Limits for on-
premises and off-premises cannot differ; they must be the same.
Deductible
• $500 “optional coverage deductible” applies.
Premium Determination
• Premium is dependent on coverage limit, territory, and class of business.
Employee Dishonesty:
Description of Coverage
• Optional coverage for dishonest or fraudulent acts of the insured's
employees is available at limits of $5,000, $10,000, $25,000, or $50,000 per
occurrence.
Deductible
• $500 “optional coverage deductible” applies.
Premium Determination
• Premium is dependent on coverage limit selected.
Equipment Breakdown Protection:
Description of Coverage
• Coverage is available for direct loss of or damage to covered property at the
described premises caused by or resulting from a mechanical breakdown or
electrical failure of pressure, mechanical or electrical machinery or equipment.
Deductible
• The policy's property deductible, shown in the Declarations, applies.
Premium Determination
• Premium is dependent on the limit of insurance of the building(s) or BPP (if
building is not insured) and the policy’s property deductible.
Computer Fraud & Funds Transfer Fraud Coverage:
(BP 05 47)
Description of Coverage
• Computer Fraud - Coverage is provided for loss of and loss from damage to money,
securities and other property following and directly related to the use of any
computer to fraudulently cause a transfer of that property from inside the described
premises, bank or savings institution to a person or place outside those premises.
• Funds Transfer Fraud - Coverage is provided for loss of money and securities
resulting directly from a fraudulent instruction directing a financial institution to
transfer, pay or deliver money and securities from the insured's transfer account.
Fraudulent instruction includes written instructions other than those described in the
Forgery or Alteration Additional Coverage. The Forgery or Alteration Additional
Coverage is meant to cover negotiable instructions while Computer Fraud and
Funds Transfer Fraud Endorsement (BP 05 47) is designed to cover nonnegotiable
instructions.
Limits of Insurance
• The available limits for these coverages are $25,000, $50,000 and $100,000.
Deductible
• Policy’s property deductible, shown in the Declarations, is applicable for these
coverages.
Premium Determination
• Premium is dependent on coverage LOI, number of employees, and number of
buildings.
Back to Table of Contents
Back to Endorsement Menu
Updated 03-20-17
Commercial BOP Endorsements – Property Coverage
25
Loss Payable Clauses: (BP 12 03) Description of Coverage
This endorsement provides for naming a loss payee, a lender’s loss payee, a
loss payee under a contract of sale arrangement, or a building owner loss
payee.
Premium Determination
There is no premium associated with this endorsement.
Ordinance or Law: (SB 04 15) Description of Coverage
Coverage for Ordinance or Law is provided via the following:
• Coverage 1 - for loss in value of the undamaged portion of the building due
to demolition pursuant to a building ordinance or law.
• Coverage 2 - for the cost of demolishing and removing the debris of the
undamaged portion of the building, if demolition is required by building
ordinance or law.
• Coverage 3 - for the increased cost to repair, reconstruct, or remodel
damaged or undamaged parts of the building to comply with building
ordinance or law, following damage to the building by a covered cause of
loss. $10,000 in increased cost of construction coverage is automatically
provided under the Additional Coverages section of the Business Owners
Coverage Form. The coverage provided in Coverage 3 of this endorsement
is in addition to the base $10,000 provided.
• Business Income and Extra Expense.
Limits of Insurance
• The limit for Coverage 1 is the limit for each applicable building.
• The limit for Coverage 2 and Coverage 3 is a combined limit at the choice of
the insured. The minimum limit is $10,000 with the maximum at 50% of the
building LOI.
Deductibles
• Policy’s property deductible applies for Coverage 1, 2, and 3, while a time
deductible of 72 hours applies for Business Income but does not apply for
Extra Expense.
Premium Determination
• Premium is dependent on the building rate, building LOI, and the combined
limit selected for Coverage 2 and 3.
Spoilage Coverage: (SB 04 09) Description of Coverage
• Property coverage is available for the spoilage of perishable stock caused by
breakdown or contamination and/or power outage.
Limits of Insurance
• Available limits are $2,500, $5,000, and $10,000.
Deductible
• Mandatory deductible of $500 applies.
Premium Determination
• Premium is dependent on coverage limit of insurance and class of the
business.
Note/Rule
• The insured must maintain a refrigeration maintenance or service
agreement.
Utility Services Coverage: (BP 04 57) Description of Coverage
• Coverage is available for loss of Business Income or Extra Expense caused
by an interruption of utility service resulting from direct physical loss or
damage to property of the utility service. Utility service applies to water
supply, wastewater removal, communication supply, and power supply and
includes overhead transmission lines.
Limits of Insurance
• Available limits are $2,500, $5,000, and $10,000.
Deductible
• Policy’s property deductible does not apply. Time deductible of 72 hours
does apply for Business Income but does not apply for Extra Expense.
Premium Determination
• Premium is based on all of the utility services, including overhead lines; the
option to pick and choose specific utility services does not exist. Premium is
dependent on coverage LOI.
Back to Table of Contents Back to Endorsement Menu Updated 03-20-17
Commercial BOP Endorsements – Property Coverage
26
Vacancy Permit Coverage: (SB 04 12) Description of Coverage
• The vacancy clause in the Business Owners coverage form is waived for
periods of vacancy beyond 60 days, meaning:
o Coverage for vandalism, sprinkler leakage, building glass breakage, water
damage, and theft or attempted theft exists, and;
o The 15% loss payment penalty for all other causes of loss is no longer
applicable.
Limits of Insurance
• N/A
Deductible
• Policy’s property deductible, shown in the Declarations, is applicable for
these coverages.
Premium Determination
• Premium is dependent on the applicable Building and Business Personal
Property limits of insurance. As the derived premium is based on an annual
rate, the final premium must be pro-rated for the actual number of vacant
days (number of vacant days / 365).
Note/Rule
• The period of extension must not extend beyond the anniversary date of the
policy.
• Coverage is not available at new business – only available for renewal
policies with prior approval from an Underwriter.
Identity Fraud Expense Coverage: (SB 04 25) Description of Coverage
• $25,000 aggregate limit of coverage is provided to pay the expenses
incurred by the insured as a direct result of any act of identity fraud
discovered or learned of during the policy period. By definition, such
expenses include the costs of notarizing fraud affidavits or similar
documents; certified mail sent to law enforcement or credit agencies or to
financial institutions; loss of income resulting from time taken off from work
to meet and confer with law enforcement or credit agencies; loan application
fees for re-applying for a loan after an application has been rejected solely
because the lender received incorrect credit information; and reasonable
attorneys' fees incurred, whether to defend lawsuits brought against the
insured or to remove criminal or civil judgments. The endorsement also
provides a $5,000 aggregate limit of coverage for advertising expenses
incurred by the insured to restore the insured's reputation after an event of
identity fraud.
Limits of Insurance
• See Description of Coverage above.
Deductible
• A deductible of $250 applies.
Premium Determination
Premium is a flat dollar amount.
Fine Arts Coverage: (BP 07 77) Description of Coverage
$25,000 of coverage is available for direct loss of or damage to fine arts owned
by or in the care, custody or control of the insured.
Deductible
Policy’s property deductible, as shown in the Declarations, is applicable.
Premium Determination
Premium is a flat dollar amount.
Back to Table of Contents
Back to Endorsement Menu
Updated 03-20-17
Commercial BOP Endorsements – Property Coverage
27
Water Back-up and Sump Overflow: (SB 04 21) Description of Coverage
$5,000 of coverage is provided for loss or damage to Covered Property caused
by:
• Water which backs up through sewers or drains; or
• Water which overflows from a sump even if such overflow results from the
mechanical breakdown of the sump pump. This coverage does not apply to
direct physical loss of the sump pump, or related equipment, which is caused
by mechanical breakdown; and
• Business Income and Extra Expense losses sustained as a result of loss or
damage to Covered Property.
Limits of Insurance
• The limit is an annual aggregate limit and is per location. Increased limits of
$7,500, $10,000, and $25,000 are available for additional premium
Deductible
• The policy's property deductible, shown in the Declarations, applies to this
endorsement.
Premium Determination
• Premium is dependent on the coverage limit of insurance.
Increased Cost of Loss and Related Expenses for Green
Upgrades (SB 04 16) Description of Coverage
This endorsement amends various Section I – Property coverage provisions to
address green upgrades to real and personal property, and related expenses via
the following:
• Green Upgrade Coverage – modifies Replacement Cost Coverage to
address loss settlement of damaged property using more energy-efficient,
environmentally-preferable materials, products or methods in design,
construction, manufacture or operation as recognized by a Green standards-
setter.
• Business Interruption – the period of restoration is extended for up to 30
days to recognize the increased period of time attributable to green
upgrades and related expenses.
• Related Expenses – optional coverage is available for the following related
expenses with respect to property to which Green Upgrade Coverage
applies:
a. Waste reduction and recycling
b. Design and engineering professional fees
c. Certification fees and related equipment testing
d. Building air-out and related testing
Limits of Insurance
• The limit for Green Upgrade Coverage is 20% of the applicable Building
and/or BPP limit of insurance. No other limit is available.
• The limit for the optional Related Expenses coverage is $10,000. No other
limit is available.
Deductibles
• Policy’s property deductible applies.
Premium Determination
• Green Upgrade Coverage – premium is dependent on the Building and/or
BPP rate and Building and/or BPP LOI.
• Business Interruption – no additional premium (outside of that for Green
Upgrade Coverage).
• Related Expenses - premium is dependent on the Building and/or BPP rate.
Note
• Green Upgrade Coverage does not include Ordinance or Law coverage, and
therefore will not pay any additional cost above the cost of Green Upgrades,
solely for the purpose of satisfying an ordnance or law. Ordinance or Law
coverage is addressed in a separate endorsement (see rule 3 above).
Back to Table of Contents
Back to Endorsement Menu
Updated 03-20-17
Commercial BOP Endorsements – Property Coverage
28
Windstorm or Hail Exclusion (BP 14 84) Description of Coverage
• Coverage for loss or damage caused directly or indirectly by Windstorm or Hail
may be excluded via BP 14 84.
Rules
• Identify the Premises Number and the Building Number of the building(s) to
which the endorsement is to apply.
Premium Determination
• Premium discount is based on the applicable premises’ territory.
Condominium Commercial Unit-owners Optional
Coverages: (BP 17 03) Description of Coverage
This endorsement provides the option of the following two coverages for
condominium unit-owners:
• Loss Assessment
o Coverage for assessments charged to the unit-owners by the Condo
Association as a result of direct physical loss of or damage to condo
property. Available limits of $5,000, $10,000, $25,000, and $50,000 are
available. A $500 deductible applies.
o $1,000 of coverage for assessments from the deductible of the Condo
Association’s insurance. Higher limits of $2,500, $5,000, and $10,000
are available. A $500 deductible applies.
• Miscellaneous Real Property – coverage for condominium property
pertaining to the unit-owners unit or that which the unit-owner must insure
according to a Condo Association agreement. Available limits are $1,000,
$2,500, $5,000, and $10,000. The policy’s property deductible applies.
Premium Determination
• Premium is dependent on the coverage limits selected.
Back to Table of Contents
Back to Endorsement Menu
Updated 03-20-17
Commercial BOP Endorsements – Liability Coverage
29
Abuse or Molestation Exclusion: (BP 04 39) Description of Coverage
• Liability coverage is excluded for abuse or molestation by anyone of any person
while in the care, custody or control of any insured.
Premium Determination
• There is no premium associated with this endorsement.
Note
• When insuring eligible church and other places of worship risks, Endorsement BP
04 39 must be attached.
Electronic Data Liability – Broad Coverage: (BP 05 96) Description of Coverage
• $10,000 of liability coverage is provided against damages because of loss of
electronic data that is caused by an electronic data incident. Loss of electronic
data means damage to, loss of use of, corruption of, inability to access, or
inability to properly manipulate, electronic data. Electronic data incident means
an accident, or a negligent act, error or omission, or a series of causally related
accidents, negligent acts, or errors or omissions, which results in loss of
electronic data. This endorsement excludes liability arising out of any access to
or disclosure of any person's or organization's confidential or personal
information.
Premium Determination
• Premium is a flat dollar amount.
Notes
• “Retroactive Date” listed on endorsement will always be the effective date of the
policy.
• Endorsement is not available to those classes of business that are in the
business of providing technology services or products to others.
Employee Benefits Liability Coverage: (BP 04 98) Description of Coverage
• Liability coverage is provided against claims for damages because of the
insured's negligent acts, errors or omissions committed in the administration of
an employee benefit program which result in the loss of any or all of an
employee's benefits.
Premium Determination
• Premium is dependent on policy’s liability limit.
Exclusion – Personal and Advertising Injury: (BP 04 37) Description of Coverage
All coverage for Personal and Advertising Injury Liability is excluded. Attachment
of Endorsement BP 04 37 is mandatory for the following classifications:
• Detective or Investigative Agencies – Private;
• Employment Agencies;
• Labor Union Offices;
• Lawyers Offices;
• Political Campaign Headquarters or Offices; and
• Security and Patrol Agencies.
Premium Determination
• Premium discount is based on the policy’s mandatory Liability and Medical
Expenses Coverage premium.
Hired Auto and Non-owned Auto Liability: (BP 04 04) Description of Coverage
• Coverage is provided for both Non-Owned Auto and Hired Auto. Non-Owned
Auto Liability provides coverage for any auto that is not owned, borrowed or
hired by the insured. Hired Auto Liability provides coverage for autos leased,
hired or borrowed by the insured. An auto leased with a term of six months
or more is treated as an owned auto and is not eligible for this coverage.
Premium Determination
• Premium is dependent on the policy’s liability limit.
Notes
• This endorsement is not available to insureds that have a policy covering
other commercial automobile exposures.
• The Hired Auto and Non-Owned Auto liability limit of insurance should be the
same as the policy’s Liability and Medical Expense limit.
Back to Table of Contents
Back to Endorsement Menu
Updated 03-20-17
Commercial BOP Endorsements – Liability Coverage
30
Employment-related Practices Liability Coverage : (BP 05 89) Description of Coverage
• Coverage is provided for liability arising out of claims for wrongful acts committed
against an employee because of an employment related offense, as well as a
duty to defend.
Limits of Insurance
• Available limits are $10,000, $25,000, $50,000, $75,000, and $100,000.
Deductible
• The base deductible is $500, with optional deductible of $1,000, $2,500, and
$5,000 and $10,000 available.
Premium Determination
• Premium is dependent on the number of employees, class of business, coverage
limit of insurance, and coverage deductible.
Limitation of Coverage to Designated Premises or Project:
(BP 04 12) Description of Coverage
• Liability coverage is limited to only those premises, operations and projects
specifically designated.
Premium Determination
• No premium associated with this endorsement.
Exclusion – Products Completed Operations: (SB 04 24) Description of Coverage
• All coverage for Bodily Injury and Property Damage is excluded within the
Products Completed Operations hazard.
Premium Determination
• Premium discount is based on the class of business.
Exclusion – Personal and Advertising Injury - Lawyers:
(SB 04 26) Description of Coverage
• All coverage for Personal and Advertising Injury Liability arising out of the
rendering of or failure to render professional services as a lawyer is excluded.
Premium Determination
• Premium discount is based on the policy’s mandatory Liability and Medical
Expenses Coverage premium.
Liquor Liability Coverage: (BP 04 88) Description of Coverage
• For businesses that manufacture, distribute, sell, or furnish alcoholic
beverages, Liquor Liability coverage is excluded in Section II – Liability of the
BOP policy. BP 04 88 – Liquor Liability Coverage deletes this exclusion,
thereby providing Liquor Liability coverage, subject to the policy’s Liability
and Medical Expense limit of insurance. For all other types of businesses ,
the Liquor Liability exclusion does not apply, and coverage for Liquor Liability
is provided as part of the base policy, subject to the policy’s Liability and
Medical Expanse limit of insurance.
Premium Determination
• Premium is dependent on the annual gross alcoholic beverage sales (per
$1,000) and the policy’s liability limit.
Note
• A business that routinely provides alcoholic beverages to customers, even if
there is no dollar charge for this service, is considered to be a business that
furnishes alcoholic beverages, and therefore subject to the Liquor Liability
exclusion of the base BOP policy. An example would be a salon that
provides complimentary wine, Champaign, beer, etc. to customers. A
business that allows BYOB is not considered to be in the business of selling,
serving, or furnishing alcoholic beverages and therefore not subject to the
Liquor Liability exclusion of the base policy.
Back to Table of Contents
Back to Endorsement Menu
Updated 03-20-17
Commercial BOP Endorsements – Specific Classes
31
Barber Shops and Hair Salons Professional Liability: (BP 08 01) Description of Coverage
• Professional liability coverage is provided for bodily injury, property damage,
personal injury and advertising injury or other injury that results from the
rendering of or failure to render professional services in the operation of a
barbershop or hair salon.
Premium Determination
• Premium is dependent on the number of barbers, hair stylists, etc. and the
policy’s liability limit.
Beauty Salons Professional Liability: (BP 08 09) Description of Coverage
• Professional liability coverage is provided for bodily injury, property damage,
personal injury and advertising injury or other injury that results from the
rendering of or failure to render professional services in the operation of a beauty
salon.
Premium Determination
• Premium is dependent on the number of beauticians, stylists, etc. and the
policy’s liability limit.
Funeral Directors Professional Liability: (BP 08 02) Description of Coverage
• Professional liability coverage is provided for bodily injury, property damage,
personal injury, advertising injury or other injury arising out of the rendering of, or
failure to render, professional services as a funeral director.
Premium Determination
• Premium is dependent on the policy’s liability limit.
Optical and Hearing Aid Establishments Professional Liability:
(BP 08 03) Description of Coverage
• Professional liability coverage is provided for bodily injury, property damage,
personal injury and advertising injury arising out of the rendering of or failure to
render, professional services by an establishment's certified/licensed opticians or
hearing aid specialists while performing services at the designated premises.
Premium Determination
• Premium is dependent on the policy’s liability limit
Printer’s Errors and Omissions Liability: (BP 08 04) Description of Coverage
• Liability coverage is provided for the insured's negligent acts, errors or
omissions in providing printing services. The endorsement does not apply to
any claim resulting from any publishing function.
Premium Determination
• Premium is dependent on the policy’s liability limit.
Veterinarians Professional Liability Coverage: (BP 08 05) Description of Coverage
• Professional liability coverage is provided for bodily injury, property damage,
personal injury and advertising injury arising out of the rendering of, or failure
to render, professional services as a veterinarian.
Premium Determination
• Premium is dependent on the number of veterinarians covered and the
policy’s liability limit.
Eligible Veterinarians
• Veterinarians specializing in the treatment of house pets..
Ineligible Veterinarians
• Veterinarians providing veterinary services for:
• Animals used or bred for professional racing, show or delivering;
• Animals belonging to zoos, circuses, carnivals, rodeos, theatrical or other
show enterprises;
• Training or obedience schools;
• Laboratory animal breeders;
• Animal shelters;
• Commercial cattle or hog confinement operations;
• Animal auctions; or
• Prize livestock
Back to Table of Contents
Back to Endorsement Menu
Updated 03-20-17
Commercial BOP Endorsements – Specific Classes
32
Pastoral Counseling Professional Liability Coverage:
(SB 04 04)
Description of Coverage
• This endorsement is used to provide professional liability coverage for bodily
injury, property damage, personal injury, and advertising injury or other injury
that results from the rendering of or failure to render professional services in
connection with the insured’s business of pastoral counselling
Premium Determination
• Premium is dependent on the policy’s liability limit.
Extended Medical Payments - Churches: (SB 04 07)
Description of Coverage
• This endorsement amends the Business Owners Liability Coverage to extend
medical expenses coverage for injuries sustained while taking part in athletic
activities related to or sponsored by a religious organization.
Premium Determination
• Premium is a flat dollar charge.
Residential Cleaning Services Endorsement: (BP 07 81)
Description of Coverages
• Rewards Payment Coverage – $5,000 of property coverage for a reward for
information leading to an arrest and conviction for a crime that caused loss or damage
to covered property and/or for a reward that leads to the return of stolen covered
property.
• Key and Lock Replacement Coverage – $1,000 property coverage for the cost to
replace keys and/or locks at a client’s residence due to theft or loss to keys entrusted
to the insured by the client. A $100 per occurrence deductible applies.
• Employee Dishonesty Coverage – property coverage for theft of customers’ money,
securities, etc. by an employee. If the insured does not have the Employee Dishonesty
Optional Coverage then this part of BP 07 78 is not applicable. Coverage is subject to
the limit of insurance selected in the Employee Dishonesty Optional Coverage.
• Your Work Coverage – $5,000 ($10,000 annual) of liability coverage for claims made
by a client for property damage arising directly from the insured’s work.
Premium Determination
• Premium is dependent on whether Employee Dishonesty Coverage is applicable.
Photography Endorsement: (SB 04 22)
Description of Coverages
• Employee’s Photographic Equipment – amends the Business Personal
Property section of the Business Owners Coverage Form to include the
“photographic equipment” of employees used in connection with the
operation of the insured’s business as a photographer.
• Rewards Payment Coverage – $5,000 of property coverage for a reward
for information leading to an arrest and conviction for a crime that caused
loss or damage to covered property and/or for a reward that leads to the
return of stolen covered property.
• Photographic Equipment Off-Premises Coverage – $5,000 per item/
$25,000 per occurrence of property coverage for photographic equipment
while in transit or at premises not owned, leased, or operated by the insured.
• Per-Item Photographic Equipment Coverage - $5,000 per item of property
coverage for photographic equipment at the described premises or in the
open (or in a vehicle) within 100 feet of the described premises.
• Employee Dishonesty Coverage - property coverage for theft of
customers’ money, securities, etc. by an employee. If the insured does not
have the Employee Dishonesty Optional Coverage then this part of BP 07 83
is not applicable. Coverage is subject to the limit of insurance selected in the
Employee Dishonesty Optional Coverage.
• Failure to Deliver Photographic Product Coverage - $5,000 per
occurrence ($10,000 annual) of liability coverage for those sums that the
insured becomes legally obligated to pay as damages because of a failure to
deliver “photographic product” to customers due to loss of or damage to
photographic film or electronic media. A $250 per occurrence deductible
applies.
Premium Determination
• Premium is dependent on whether Employee Dishonesty Coverage is
applicable.
Note
• When Endorsement BP 07 83 is attached to the policy, it is mandatory that
Endorsement BP 04 39 – Abuse or Molestation Exclusion be attached as
well.
Back to Table of Contents
Back to Endorsement Menu
Updated 03-20-17
Commercial BOP Endorsements – Specific Classes
33
Restaurants Endorsement: (BP 07 78)
Description of Coverages
• Rewards Payment Coverage – $5,000 of property coverage for a reward for
information leading to an arrest and conviction for a crime that caused loss or
damage to covered property and/or for a reward that leads to the return of
stolen covered property.
• Brands and Labels Coverage – property coverage for the cost of removing
the brands/labels or marking as “salvage” any branded or labeled
merchandise and/or property that is damaged by a covered loss.
• Ordinance or Law – Equipment Coverage – coverage for repair or
replacement of covered property as required by law.
• Lock Replacement Coverage – $1,000 property coverage for the cost to
repair or replace locks due to theft or loss to keys.
• Spoilage Coverage – $10,000 property coverage for the spoilage of
perishable stock cause by breakdown or contamination and/or power outage
with the option to select a higher limit of insurance up to $50,000. The
insured must maintain a refrigeration maintenance or service agreement for
spoilage coverage to apply.
• Food Contamination Coverage – property coverage for certain expenses
and Business Income losses sustained as a result of the described premises
being ordered closed by any governmental authority as a result of the
discovery or suspicion of food contamination. Expenses may include those to
clean equipment, to replace affected food, to provide necessary medical
tests or vaccinations, and/or to advertise in order to restore the insured’s
reputation. The limit for all expenses except for advertising expenses is
$10,000 with the option to select a higher limit up to $50,000. The limit for
advertising expenses is $3,000 with an option to select a higher limit up to
$10,000.
• Employee Dishonesty Coverage – property coverage for theft of
customers’ money, securities, etc. by an employee. If the insured does not
have the Employee Dishonesty Optional Coverage then this part of BP 07 78
is not applicable. Coverage is subject to the limit of insurance selected in the
Employee Dishonesty Optional Coverage.
Restaurants Endorsement (cont.):
• Delivery Errors and Omissions Coverage – $10,000 liability coverage for
damages that the insured is legally obligated to pay due to failure to deliver
or a misdelivery of items held for sale by the insured, the insured’s
employees, or a concessionaire trading under the insured’s name. A $250
per occurrence deductible applies.
• Merchandise Withdrawal Coverage – $25,000 liability coverage for
expenses related to a necessary withdrawal of merchandise during the policy
period. Expenses may include costs of notification, costs of overtime paid to
employees, costs of hiring independent contractors and/or temporary
employees, costs of transportation, storage, disposal of products, etc. A
$250 per occurrence deductible applies.
Premium Determination
• Premium is dependent on the limits selected for Food Contamination
Coverage and Spoilage Coverage and whether Employee Dishonesty
Coverage is applicable.
Note
• When Endorsement BP 07 78 is attached to the policy, do not attach either
Spoilage Endorsement BP 04 15 or Food Contamination Endorsement BP 04
31.
Back to Table of Contents
Back to Endorsement Menu
Updated 03-20-17
Commercial BOP Eligibility
34
General Eligibility
The following classes of business are “ineligible” for the BOP program:
• Automobile repair or service stations; automobile, motor home, mobile home and motorcycle dealers; parking lots or garages; unless incidental
to another otherwise eligible class.
• Bars, pubs.
• Condominium associations other than office, commercial or residential condominiums.
• Buildings occupied in whole or in part for manufacturing.
• Insureds whose business operation involves one or more locations which are used for manufacturing.
• Household personal property.
• One or two family dwellings unless of garden apartment variety where multiple units are grouped within a single area and are under common
ownership, management and control.
• Places of amusement.
• Banks, building and loan associations, savings and loan associations, credit unions, stockbrokers and similar financial insti tutions.
Unless otherwise noted elsewhere, the following would make a risk ineligible:
• Buildings of more than 35,000 square feet in total floor area.
• More than $6,000,000 in annual gross sales at each location.
Note: See Underwriting Guidelines for details on acceptable/unacceptable risks (a risk may be eligible for the BOP program yet a more specific
factor could make it an unacceptable risk).
Click on any of the following for Specific Eligibility Guidelines:
Updated 03-20-17 Back to Table of Contents
• Grocery Stores and Supermarkets
• Processing and Service Risks
• Offices
• Self-storage Facilities
• Wholesale Risks
• Limited Cooking Restaurants
• Fast Food Restaurants
• Casual Dining Restaurants
• Fine Dining Restaurants
• Seasonal Restaurants
• Contractors
• Apartments
• Motels
• Convenience Food Stores
• Beauty & Nail Salon Coverage
Click here to view an Eligibility by Business BOP Class Selection Help Document
Commercial BOP Eligibility
35
Updated 03-20-17
Grocery Stores and Supermarkets
Definition: A grocery store or supermarket is an establishment where the
primary activity is the retail sale of food, such as canned and frozen foods;
fresh fruits and vegetables; and fresh and prepared meats, fish, and poultry.
(Items typically sold in a convenience food store may also be sold.)
Eligibility: Any of the following would make a risk ineligible:
• More than 3,000 square feet in total floor area, when sale of gasoline is also
provided.
• The presence of automobile service or repair operations.
• The presence of a car wash operation.
• The presence of propane or kerosene filling operations.
Acceptability: The on-line BOP quoting interface will determine whether a
specific business class is acceptable
Processing and Service Risks
Eligibility: The following would make a risk ineligible:
More than 25% of annual gross sales derived from off-premises operations.
Acceptability: The on-line BOP quoting interface will determine whether a
specific business class is acceptable
Offices (including Office and Commercial Condominium
Associations)
Eligibility: Any of the following would make a risk ineligible:
• More than 6 stories in height.
• More than 100,000 square feet in total floor area.
• Wholesaler, mercantile, processing, and service occupancies and
contractors, which in total exceed 35,000 square feet.
• If contractors occupy more than 7,500 square feet, or more than 15% of the
total area, the risk should be classified as a Contractor Office.
Acceptability: The on-line BOP quoting interface will determine whether a
specific business class is acceptable
Self-storage Facilities
Eligibility: Any of the following would make a risk ineligible:
• More than two stories in height. (No limitation applies to floor area).
• Permitting of cold storage or the storage of industrial materials, chemicals,
pollutants, and/or waste.
• Providing outdoor storage for any type of motorized vehicles, including
campers and recreational vehicles.
Wholesale Risks
Eligibility: Any of the following would make a risk ineligible:
• More than 25% of annual gross sales are derived from retail operations.
• More than 25% of total floor area is open to the public.
Acceptability: The on-line BOP quoting interface will determine whether a
specific business class is acceptable
Limited Cooking Restaurants
Definition: Limited cooking restaurants are those where foods are prepared cold
or cooked using appliances which do not emit smoke or grease-laden vapors
that require an exhaust system (for example, electric sandwich grills, toasters,
warming ovens, roller warmers, infrared snack warmers, microwave ovens,
domestic ranges, domestic ovens and pizza ovens). No grilling, open broiling,
deep fat frying, roasting, barbecuing, solid fuel cooking (for example, mesquite,
charcoal or hardwood) or other processes capable of producing grease-laden
vapors requiring an exhaust system are permitted.
Eligibility: Any of the following would make a risk ineligible:
• More than 7,500 square feet in total floor area.
• Seating capacity greater than 75.
• Liquor sales other than beer or wine.
• Sales of beer and wine of greater than 25% of total sales.
• The presence of a bar or cocktail lounge.
• Catering service that exceeds 10% of total sales.
Back to Table of Contents
Back to Eligibility Menu
Note: While a risk may be eligible for the BOP program, that does not mean the risk is acceptable by Stillwater’s standards.
The on-line BOP quoting interface on FIRST will determine whether a risk is acceptable.
Commercial BOP Eligibility
36
Updated 03-20-17
Fast Food Restaurants
Definition: Fast food restaurants may include limited cooking type appliances
and only the following cooking processes capable of producing grease-laden
vapors requiring an exhaust system: grilling, enclosed broiling, deep fat frying,
roasting or barbecuing. Open broiling and solid fuel cooking (for example,
mesquite, charcoal or hardwood) are not permitted.
Eligibility: Any of the following would make a risk ineligible:
• More than 7,500 square feet in total floor area.
• Seating capacity greater than 150.
• Liquor sales other than beer or wine.
• Sales of beer and wine of greater than 25% of total sales.
• The presence of a bar or cocktail lounge.
• Catering service that exceeds 10% of total sales.
• Table service.
• Lack of an automatic extinguishing system for cooking equipment
equivalent to that which is recommended by NFPA Standard #96, or the
lack of a maintenance contract for such equipment.
Casual Dining Restaurants
Definition: Casual dining restaurants serve moderately priced food in a casual
atmosphere to patrons who generally order and are served while seated and
pay after eating. Take-out service and the use of a buffet may also be available.
These restaurants may serve beer, wine, or liquor.
Eligibility: Any of the following would make a risk ineligible:
• More than 7,500 square feet in total floor area.
• Seating capacity greater than 150.
• Alcohol sales of greater than 50% of total sales.
• Bar operations during hours when full table service is not also available
and/or bar operations for the sole purpose of consuming alcoholic
beverages.
• Dancing on premises.
• Providing of live entertainment (including karaoke) other than incidental
music, such as piano playing.
• Catering service that exceeds 10% of total sales.
• Lack of an automatic extinguishing system for cooking equipment
equivalent to that which is recommended by NFPA Standard #96, or the
lack of a maintenance contract for such equipment.
Fine Dining Restaurants
Definition: Fine dining restaurants provide quality food and alcoholic beverages
prepared by highly trained chefs and served with a great deal of attention to
customers by wait staff. These restaurants typically have valuable business
personal property consisting of furniture, tableware, lighting, art and other items
of décor.
Eligibility: Any of the following would make a risk ineligible:
• More than 7,500 square feet in total floor area.
• Seating capacity greater than 150.
• Alcohol sales of greater than 75% of total sales.
• Bar operations during hours when full table service is not also available
and/or bar operations for the sole purpose of consuming alcoholic
beverages.
• Dancing on premises.
• No live entertainment (including karaoke) other than incidental music, such
as piano playing, provided by the establishment
• Catering service that exceeds 15% of total sales.
• Lack of an automatic extinguishing system for cooking equipment equivalent
to that which is recommended by NFPA Standard #96, or the lack of a
maintenance contract for such equipment.
• Lack of chef supervision of food preparation and other kitchen operations.
• Lack of maître d supervision of wait staff and to control customer turnover.
Seasonal Restaurants
Restaurants of any category that are closed for more than 30 consecutive days
are ineligible.
Convenience Food Stores
Many types of convenience stores are eligible and acceptable for the BOP
program. The on-line BOP quoting interface will determine if specific classes are
acceptable or not.
Back to Table of Contents
Back to Eligibility Menu
Commercial BOP Eligibility
37
Updated 03-20-17
Contractors
The following types of contractors and/or activities are ineligible for the BOP
program:
• General Contractors. (A General Contractor is a contractor who is responsible
for managing an entire project on behalf of the client, rather than just a portion
of the project. In addition, a General Contractor hires and coordinates the
efforts of subcontractors.)
• Contractors who use cranes in their operations.
• Contractors who repair, install or service or previously repaired, installed or
serviced boilers, burglar alarm systems, automatic fire extinguishing systems,
elevators, escalators or computers.
• Contractors with products manufactured or sold under the insured's name.
• Contractors who engage in or previously engaged in:
1) Demolition, blasting, wrecking, high pressure boiler work or liquid
petroleum gas (LPG) work.
2) Insulation work.
3) Lawn chemical spraying operations, except with respect to the
operations of a landscape gardener, provided that such landscape
gardener operations meet all standards of any statute, ordinance,
regulation or license requirement of any federal, state or local
government that apply to such operations.
4) Hazardous material or pollution abatement operations, including but
not limited to: asbestos, lead, and/or radon mitigation and testing.
• Contractors who engage in:
1) Sales, service or installation of any kind of automatic opening doors
or garage doors (residential or commercial).
2) Heavy construction including but not limited to:
o Bridge, caisson, cofferdam, dam, dike, dry dock, jetty, levee
or pier construction.
o Cable laying and cable installation.
o Crane or derrick installation or rigging.
o Dredging.
o Drilling.
o Excavation.
o Grading of land.
o Iron or steel erection.
Back to Table of Contents
Contractors continued:
o Pipeline construction.
o Sandblasting.
o Scaffolding, hoists, tower erection.
o Tunneling.
o Installing, repairing, or servicing hot tubs.
o Ship repair or painting work.
o "Shop-only" carpentry or sheet metal work.
o Installing and repairing swimming pools.
o Tree service or removal contracting work.
o Waterproofing contracting operations.
o Installing wood and coal stoves.
• Contractors with more than $300,000 of annual payroll.
• Contractors that work at a height of over three stories.
• Contractors with the total cost of subcontracted work exceeding more than
10% of total gross sales.
• Contractors that rent or lease equipment to others.
• Contractors with sales unrelated to installation, service, or repair exceeding
25% of annual gross sales.
Acceptability: The Business Owner User Interface will determine whether a
specific business class is acceptable
Apartments (including Residential Condominium
Associations)
Though some apartments are eligible for the ISO program, none are currently
acceptable for the Stillwater program.
Motels
Though some motels are eligible for the ISO program, none are currently
acceptable for the Stillwater program.
Back to Eligibility Menu
Commercial BOP Beauty and Nail Salon Coverage
How does Stillwater handle Beauty and Nail Salon professional services exposures?
For starters, like most BOP’s, our policy contains this exclusion:
B. Exclusions
1. Applicable To Business Liability Coverage
This insurance does not apply to:
j. Professional Services
"Bodily injury", "property damage" or "personal and advertising injury" caused by the rendering or failure to render any professional service. This
includes but is not limited to:
This exclusion applies even if the claims allege negligence or other wrongdoing in the supervision, hiring, employment, training o r monitoring of others
by an insured, if the "occurrence" which caused the "bodily injury" or "property damage", or the offense which caused the "pe rsonal and advertising
injury", involved the rendering or failure to render of any professional service.
However, Stillwater offers BP 08 09 01 10 – Beauty Salons Professional Liability – which removes the referenced exclusion and
provides liability for “salon services.”
The specific services that this endorsement covers are: haircutting, hairstyling, hair dyeing, hair trimming, hair shaving, hair conditioning, hair
shampooing, facial massages and treatments, nail manicures and pedicures, hair removal waxing, and advice or instruction for the appearance or
personal grooming.
Other more risky services, such as the application of permanent eyebrows or makeup, micro-blading, eyebrow weaving, etc., are not covered by this
endorsement. This does not mean that a salon that performs these services is an unacceptable risk; just that there is no professional liability coverage
afforded for those specific services. A liability claim arising from a nail manicure would be covered. A liability claim ar ising from eyebrow weaving would
not be covered.
38
These two items apply specifically to
Beauty and Nail Salons
(6) Any service, treatment, advice or instruction for the purpose of appearance or
skin enhancement, hair removal or replacement or personal grooming;
(8) Body piercing services;
Back to Eligibility Menu
Back to Table of Contents Updated 03-20-17
Commercial BOP Underwriting Guidelines
39
• General Guidelines
• Insured/Applicant
• Amount of Insurance
• Alcohol Sales Thresholds
• Home Based Businesses
• Structure
• Exposures
• Named Storm and Wildfire Underwriting
Procedures
• Loss History
• Underwriting Tiers
Click on the following tab to view specific Business Class
Eligibility Guidelines:
Updated 03-20-17 Back to Table of Contents
All applications are to be submitted via our website FIRST.
The acceptability of a business class will be determined by the FIRST Quote system.
Responses to the various Quote Detail Questions during the quote process will advise of underwriting eligibility conflicts. The producer
does NOT have the authority to submit coverage for any property exhibiting a conflict with one or more of the characteristics shown in our
Underwriting Guidelines.
Please click on any topic listed below to view specific Underwriting Guidelines:
BOP Eligibility Guidelines
Miscellaneous Rules
• Policy Term
• Policy Minimum Premium
• Additional Premium Changes
• Insured Request Cancellation
• Inflation Guard
• Expense Fee / Policy Fee
• Lessors Risk with Multiple Occupants
• Inspections
Underwriting Contact info:
Fax: 1-866-300-8027
Email: [email protected]
Commercial BOP Underwriting Guidelines
40
Updated 03-20-17
General Guidelines
• Acceptable risks must be evaluated on the construction, maintenance and
location of the business.
o Construction – well constructed and built in accordance with
prevailing building codes as defined by local authorities.
o Maintenance – well maintained with regular upkeep of items such
as painting, roof repairs, landscaping, and other maintenance items
that reflect a pride of ownership.
o Location – located in stable neighborhoods with other similar
businesses located nearby.
• * Risks with more than 4 locations per policy or 4 buildings per
location are unacceptable.
• Security and protection must be commensurate with values and nature of
property insured.
• Minimum all-perils deductible is $1,000.
• Refer to Eligibility by Business Class document.
Insured / Applicant
• Risks with any cancellation in the past 36 months are unacceptable.
• Occupancy – Unacceptable if:
o Vacant or unoccupied. Vacant is defined as more than 30% of
structure being unoccupied.
o Manufacturing takes place on premises.
o Wholesalers, distributors or retailers of moderate risk products
• Gross Annual Sales greater than $6,000,000 per location are unacceptable.
• Bankruptcy, lien, suit or judgment within last 5 years is unacceptable.
Amount of Insurance
• Amount of insurance for Building and Business Personal Property must
equal 100% of replacement cost. Insurance to value will be verified by using
rebuilding estimates based on current construction industry costs.
• Maximum amount of insurance for Building and Business Personal Property
combined is $2,000,000 per location, no matter the number of buildings at a
given location.
• Maximum amount of insurance on Business Personal Property for policies
without a building limit is $500,000.
• Endorsement requests increasing coverage at an existing location by more
than $100,000 (building) or $50,000 (contents) requires prior approval from
Underwriting.
Alcohol Sales Thresholds
• A risk is unacceptable if the ratio of alcohol sales to total sales is greater
than the following:
o Fast Food, Fast Casual, and Casual Restaurants – greater than
25%
o Upscale Casual Restaurants/Bistros – greater than 50%
o Fine Dining Restaurants – greater than 75%
o Grocery/Convenience/Drug Stores – greater than 30%
Home-Based Businesses
• A risk is unacceptable if the business is one that brings routine customer
foot traffic to a personal residence.
• For acceptable risks, building coverage is not available; only BPP and
Liability may be provided. The residence must be insured via a
Homeowners, Condo, or Dwelling policy.
Back to Table of Contents
Back to Underwriting Menu
* Note: Multiple locations and buildings are not currently available.
Commercial BOP Underwriting Guidelines
41 Updated 03-20-17
Structures
The following risks are unacceptable, even if the building is not being insured:
• Age of building is older than 100 years (unless prior approval by the Company has
been received).
• Buildings older than 50 years, if:
o The roof is older than 25 years (roofs comprised of clay or terra cotta, concrete
roof decking, and metal roods comprised of steel or aluminum are not subject to
an age restriction), or
o The electrical/wiring system has not been updated within the past 25 years, or
o The HVAC system has not been replaced in the last 25 years, or
o The plumbing has not be updated in the last 25 years.
• Buildings with roofs possessing any of the following:
o Known damage, deterioration, missing shingles, excessive granular loss, raised
or lifted shingles, or patches.
o More than two layers of shingles.
o Made of wood shakes or wood shingles.
• Buildings that do not use circuit breakers.
• Buildings using unconventional construction, design, materials, or methods.
• Buildings that have unrepaired damage.
• Buildings without properly functioning smoke detectors.
• Properties of an isolated or remote nature, meaning:
o More than five road miles from a responding fire department; or
o Over 1,000 feet from a fire hydrant (unless a company approved alternative
water supply exists); or
o Difficult to access from the road.
• Properties located in Protection Class 10.
• Properties located within 400 feet of brush or forest.
• Properties susceptible to damage from earth movement due to construction design
or site location, including landslide or mudslide areas.
• Properties with existing damage from sinkhole damage or any known current or
proximate sinkhole activity.
• Properties that do not meet ADA requirements.
Structures continued
The following risks are unacceptable if the building is being insured but
are acceptable if the building is not being insured (i.e. the insured is
leasing the building or space in the building):
• Buildings with more than 3 stories.
• Buildings listed on a Historical Register.
Exposures
The following exposures are unacceptable:
• Habitational risks, contractors, schools, daycare facilities, social services,
and fitness centers.
• Properties with livestock or exotic animals.
• Governmental entities as the primary insured (acceptable as an additional
insured).
• Any liability exposure involving aircraft, watercraft or motor vehicles.
• Properties used for any farming, ranching or agricultural activity, whether
for profit or not.
• Parking lots, hallways, stairways, etc. not well lit and free of areas of
significant darkness.
• Multi-story buildings equipped with railings with vertical openings that
exceed 6 inches. Railings must be at least 36 inches in height.
Named Storm and Wildfire Underwriting Procedures
Named Storms - No new or additional coverage may be bound on new
business or by endorsement to in-force policies if the National Weather
Service has issued a Tropical Storm or Hurricane warning for a specific area
for the duration of the watch/warning.
Wildfires - No new or additional coverage may be bound on new business or
by endorsement to in-force policies if the risk lies within 25 miles of an
existing wildfire. The company will issue bulletins announcing ZIP codes that
are affected by any moratorium, but the 25-mile rule should always be
obeyed. The moratorium will continue in effect until such time as the fire is
contained, and the public safety is secured and evacuated residents are
allowed to re-enter the area. Binding Authority will remain suspended until an
announcement is made indicating that the restriction has been lifted.
Back to Table of Contents
Back to Underwriting Menu
Commercial BOP Underwriting Guidelines
42 Updated 03-20-17
Loss History
A business is an unacceptable risk if it has had a loss in the 5 years prior to the New Business effective date.
Underwriting Tiers
Each building to be insured will be placed in an underwriting tier based on an evaluation of the following criteria:
• Prior Loss History
• Number of Years in Business
• Age of the Building to be insured
• Type of Roof
• Insurance Score
• Number of Locations for the entire risk
• Number of Employees for the entire business
• Number of policies written with Stillwater Insurance Group
• Number of days the policy was quoted in advance of the effective date
• Type of Entity (Corporation, Sole Proprietorship, Partnership, etc.)
• Business Class
The relativities for the 11 different variables used in tier determination (above) are multiplied together to produce an underwriting tier score. Risks whose tier score
exceeds 2.48 will be considered unacceptable to write.
Back to Table of Contents
Back to Underwriting Menu
Commercial BOP Miscellaneous Rules
43 Updated 03-20-17
Policy Term
The Business Owners Policy may be written for a term of 12 months and
renewed annually, according to the current rules, underwriting guidelines, and
forms.
Policy Minimum Premium
A policy’s minimum premium is dependent on the class of business, the policy’s
liability limit, and whether Building or BPP coverage is present.
Additional Premium Changes
All premium bearing changes made to a policy after its effective date should
use the rates and rules that were in effect on the effective date of the policy.
For policies where the inception premium was less than the policy writing
premium, the premium changes should be based on the inception premium and
not the minimum premium amount. If the resulting premium is still less than the
minimum premium then minimum premium should be charged. Any additional
premium or return premium should be calculated on a pro rata basis.
Insured Requested Cancellation
Any return premium is computed on a pro rata basis.
Inflation Guard
The amount of insurance limit applicable to all buildings and business personal
property will be automatically increased by 4% at each annual renewal to
account for inflation.
Policy Fee
All policies are charged a policy fee of $50. The fee is fully earned when the
policy is written.
Inspections
Certain risks – either because of property values and / or the nature of a
business class (restaurants, convenience stores…) may necessitate physical
property inspections or a survey of operations. Company representatives will call
and schedule these in advance. Follow-up possibilities, as you know, are
numerous. We are positioned as a preferred carrier. Obviously if a risk has
below average conditions, we’ll take action – and we’ll be sure to notify you first.
Additional Insureds
SB 04 36 - Blanket Additional Insured and Blanket Insurance Subrogation
Waiver is used for all Additional Insured scenarios and is automatically included
with all policies. For Additional Insureds that need to be listed on the insured’s
declarations, this can be done via the on-line quoting tool, by calling Stillwater
customer service, or by emailing [email protected] . Additional
Insureds that are not listed on the declarations are automatically afforded
coverage as an Additional Insured with regard to their respective expressed
business interest, if they have a written agreement with the insured to be
considered an Additional Insured on the insured’s policy.
Notices of coverage changes, cancels, and non-renewals are provided to those
Additional Insureds that are listed on the insured’s declarations. 10 days of
notice is provided for non-payment, and 30 days of notice is provided for cancels
and non-renewals.
Waiver of Subrogation
SB 04 36 - Blanket Additional Insured and Blanket Insurance Subrogation
Waiver declares that when there is an Additional Insured, our policy is primary,
and we will not seek contribution from that Additional Insured’s carrier. SB 04 36
is automatically included with all policies.
Back to Table of Contents
Back to Underwriting Menu
Commercial BOP Lessors with Multiple Occupants
Business Occupancy Types
• For rating purposes, a weighted average of all tenants in the insured building is used. The percentage of total leasable square footage of each applicable Business Occupancy Type should be entered in the Occupant Information screen in the on-line quoting tool. Total percentage of all Business Occupancy Types must equal 100%.
Office or Clinic
Retail – clothing
Retail – other
Food or Convenience Store
Laundry or Dry Cleaning
Personal Service or Studio
Restaurant
Contractor’s Shop
Distributor or Wholesaler – clothing/fabric
Distributor or Wholesaler – food/flowers
Distributor or Wholesaler – other
Vacant Space
• Insured/applicant who is an occupant of the building should be treated the same as any tenant when entering business occupancy percentages.
• Unoccupied leasable space should be entered under “Vacant Space.” Common areas (lobby, stairwells, restrooms, etc.) shared by tenants are not considered “leasable space”.
• Building is unacceptable if any single tenant engages in the following:
• Provides space for lodging or for residential use.
• Main operation is a bar.
• Handles hazardous, explosive, or highly flammable materials.
• Performs any manufacturing or welding on premises.
Example
• An insured/applicant accounting office occupies 1,000 square feet of a building. Three additional tenants occupy the building: restaurant (2,000 square feet), real estate office (500 square feet), and florist (1,500 square feet). Percentage for each applicable Business Occupancy Type is:
Office or Clinic = 30% [(1,000 + 500) / 5,000]
Restaurant = 40% (2,000 / 5,000)
Retail – other = 30% (1,500 / 5,000)
• The entry in the on-line BOP quoting interface is:
44
Business Occupancy Types
Office or Clinic 30%
Restaurant 40%
Retail - other 30%
Total 100%
Percent of Leasable Space
Updated 03-20-17
Commercial BOP Discounts
45
Paid in Full Discount • A discount of 5% will be provided to policyholders who pay their premium in full at the beginning of the policy term .
Advance Quoting • If a risk is quoted at least 15 days in advance of the policy effective date, the rate will be about 2% lower. If the quote is completed at least 31 days
in advice, the rate will be about 5% lower.
Multiple Policies • If the policyholder purchases multiple policies form Stillwater their premium will be lower based on the following:
Some Coverage Exclusions may result in a reduction in premium, and include the following :
• Exclusion – Personal and Advertising Injury: (BP 04 37)
• Exclusion – Products Completed Operations: (BP 14 22)
• Exclusion – Personal and Advertising Injury - Lawyers: (BP 14 15)
IRPM – Manual Credits/Debits • We do not apply manual credits or debits, as they would be redundant for our quotes and policies. Traditional underwriting characteristics used by
other companies to determine credits/debits are already integrated into our pricing. The final quote presented by our quoting system is always our
best price.
Updated 03-20-17 Back to Table of Contents
Number of Stillwater polices Discount %
2 Stillwater policies 5%
3 Stillwater policies 10%
4 or more Stillwater policies 15%
Eligible multiple policies include both Commercial and Personal
Lines policies issued by Stillwater.
Commercial BOP Payments
46
Payments
Pay Plans
• Paid-in-full (receives a discount)
• 2 Pay Plan : First payment is due at inception, or renewal, for 50% of the total annual premium plus all state mandated charges and
policy fees. The remaining 50%, plus a $5 installment fee, is due 180 days after policy inception.
• 4 Pay Plan: First payment is due at inception or renewal for 25% of the total premium plus all state mandated charges and policy fees.
25% of total policy premium, plus a $5 installment fee, will be billed at 90 days, 180 days and 270 days after inception.
• Monthly EFT: This plan is only available with Electronic Funds Transfers (EFT). For new business, the first installment payment is due
at inception, for 15% of total premium plus all policy fees and state mandated charges. The balance is divided equally between 11
payments and includes a $3 monthly installment fee. For renewals, total policy premium, policy fees, and state mandated charges are
divided equally between 12 payments, and a #3 monthly installment fee is included with each payment. Withdrawals must be made
from a checking or savings account.
Note: Monthly draft from a credit card is currently NOT an option.
Payment Method
• Down Payments can be made via:
o Agency Trust Account
o Client Bank Account
o Credit or Debit Card
• We accept all major Credit Cards:
o Visa
o Master Card
o American Express
o Discover
Back to Table of Contents Updated 03-20-17
Non Payment Cancellation / Reinstatement • A notice of cancellation for nonpayment is mailed to the insured 15 days
prior to the date that the policy will run out of equity (“computed cancel date”).
• If payment is not received by the computed cancel date, the policy is placed into lapse status.
• If the policy is eligible for reinstatement, and payment is received 14 days or less after the cancel date, the policy may be reinstated without a lapse, as long as the insured signs a no loss statement.
• A policy that has already been reinstated 2 times in a policy term is not eligible for reinstatement.
Note: All reinstatements should be handled directly by the
Commercial Lines Underwriter.
Commercial BOP FIRST Service Features
FIRST Service Features
Click on the drop down Select Menu to view the
available FIRST Service Features.
The Service features for Business Owners Policies
include:
• Billing
• Notes
• Policy History
Click on an above link for additional
information on these Service Features.
47 Updated 03-20-17 Back to Table of Contents
Acme Co
Commercial BOP FIRST Service Features- Billing
FIRST Service Features -Billing
1. Click on Billing from the drop down select
menu.
2. The Policy Billing Status screen provides two
options:
• Make A Payment
&
• Transaction History
o Transaction History provides a History of all
payments.
o Use Start Date and End Date to select the time frame
parameters.
48 Updated 03-20-17 Back to Table of Contents
1
2
Back to Service Features Menu
Acme Co
Acme Co
Commercial BOP FIRST Service Features – Notes
FIRST Service Features – Notes
1. Click on Notes from the drop down
select menu.
2. All Policy Notes are archived. Click
on the desired Note Transaction Type
to view .
49 Updated 03-20-17 Back to Table of Contents
1
2
Back to Service Features Menu
Acme Co
Acme Co
Commercial BOP FIRST Service Features – Policy History
FIRST Service Features – Policy
History
1. To view a Document click on Policy History
from the drop down select menu.
• Policy History is an archive of all
Documents mailed to the insured.
2. Click on the desired document to view/print.
50 Updated 03-20-17 Back to Table of Contents
1
2
Back to Service Features Menu
ACME CO JOHN DOE 100 GOLDEN STATE DR
TOWN. CA 95555-0001
ABC AGENCY 500 AGENT RD TOWN. CA 95555-0001
(555) 555-5555
Acme Co