The Business Owner's Policy Quiz
The world of business is a tough one to conquer, but once you do, you’ll have a firm understanding of the inner workings of one of the biggest aspects of today’s society. Navigate the complexities of business insurance with "The Business Owner's Policy Quiz." Test your expertise on BOP essentials, from coverage types to risk management. Dive into questions about property protection, liability coverage, and the tailored solutions BOPs offer to entrepreneurs. Whether you're a seasoned business owner or venturing into the entrepreneurial realm, this quiz explores the intricacies of safeguarding your enterprise. Challenge yourself to understand policy nuances, coverage Read morelimits, and how a BOP can fortify your business. Discover the key elements that make a Business Owner's Policy a crucial asset in the dynamic landscape of commercial insurance. Today, we’ll be taking a look at the business owner's policy. What do you know about it? Let’s take a look.
- 1.
What is the largest office building risk that might be eligible for a BOP?
- A.
Three stories and 50,000 square feet
- B.
Three stories and 75,000 square feet
- C.
Six stories and 75,000 square feet
- D.
Six stories and 100,000 square feet
Correct Answer
D. Six stories and 100,000 square feetExplanation
The largest office building risk that might be eligible for a Businessowners Policy (BOP) is typically 100,000 square feet. However, eligibility can vary depending on the insurer's specific guidelines and the nature of the office building's operations. It's important to note that BOPs are designed for small to medium-sized businesses, and the size limitation ensures that the policy covers businesses with relatively low-risk profiles.Rate this question:
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- 2.
3: Under the additional coverages of the Businessowners property coverage, property removed to protect it from loss will be covered at another location for up to how many days?A. 5 daysB. 10 daysC. 20 daysD. 30 days
- A.
5 days
- B.
10 days
- C.
20 days
- D.
30 days
Correct Answer
D. 30 daysExplanation
D is correct. The preservation of property additional coverage covers loss from any cause of loss to property that was removed from the insured location to protect it from damage by a covered peril. Coverage applies for up to 30 days after the property is first moved.Rate this question:
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- 3.
What is the standard deductible for the BOP property coverage?
- A.
$500
- B.
$1,000
- C.
$750
- D.
$250
Correct Answer
A. $500Explanation
A4: A is correct. The standard deductible is $500.Rate this question:
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- 4.
Which of the following statements applies to Mechanical Breakdown coverage?
- A.
It is not available in a BOP.
- B.
It is automatically provided in a BOP.
- C.
It is an optional BOP coverage that is activated by an entry in the declarations.
- D.
It is specifically designed to cover insured objects while they are being tested.
Correct Answer
C. It is an optional BOP coverage that is activated by an entry in the declarations.Explanation
A5: C is correct. Optional coverages are usually preprinted in the policy, but apply only if they are designated in the declarations. Losses involving an object during testing are specifically excluded.Rate this question:
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- 5.
6: Which one of the following coverages is not included in the BOP?A. Bodily injury and property damage liabilityB. Personal and advertising injury liabilityC. Medical expenseD. Professional liability
- A.
Bodily injury and property damage liability
- B.
Personal and advertising injury liability
- C.
Medical expense
- D.
Professional liability
Correct Answer
D. Professional liabilityExplanation
A6: D is correct. The Businessowners Liability coverage includes the following coverages: BI liability, PD liability, personal and advertising injury liability, and medical expense.Rate this question:
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- 6.
Which of the following would be covered under the building coverage of a BOP?
- A.
Restroom fixtures
- B.
Photocopy machines
- C.
Furnishings in the insured's private office
- D.
Carpets and floor tiles
Correct Answer(s)
A. Restroom fixtures
D. Carpets and floor tilesExplanation
A7: A and D are correct. Property owned and used by the insured in the business, such as photocopy machines and furnishings in the insured's private office, would be covered under Business Personal Property coverage.Rate this question:
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- 7.
Which of the following would be covered under the business personal property coverage of a BOP?
- A.
Desks, filing cabinets, and other office equipment the insured uses in her business
- B.
An enclosure around the front entry to a store that the insured tenant had built when he began leasing the building
- C.
Cans of paint that are stacked near a newly constructed outer wall prior to painting the wall
- D.
Fire extinguishers located at various places on the inside walls of the building
Correct Answer(s)
A. Desks, filing cabinets, and other office equipment the insured uses in her business
B. An enclosure around the front entry to a store that the insured tenant had built when he began leasing the buildingExplanation
A8: A and B are correct. Property owned and used by the insured in the business and tenants' improvements and betterments made at the tenant's expense that cannot be legally removed are covered under Business Personal Property coverage. Materials that are on or within 100 feet of the premises being used for alterations, such as the cans of paint in Choice C, are covered under Building coverage. Personal property used to maintain or service the building, such as the fire extinguishers in Choice D, are also covered under Building coverage.
A8: A and B are correct. Property owned and used by the insured in the business and tenants' improvements and betterments made at the tenant's expense that cannot be legally removed are covered under Business Personal Property coverage. Materials that are on or within 100 feet of the premises being used for alterations, such as the cans of paint in Choice C, are covered under Building coverage. Personal property used to maintain or service the building, such as the fire extinguishers in Choice D, are also covered under Building coverage.Rate this question:
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- 8.
Which of the following is not excluded under Businessowners Liability coverage?
- A.
Damages the insured causes intentionally
- B.
Liquor liability for those in the business of serving liquor
- C.
Liability assumed under an insured contract
- D.
Damage to the insured's own work
Correct Answer
C. Liability assumed under an insured contractExplanation
Under Businessowners Liability coverage, intentional damages, liquor liability for businesses serving liquor, and damage to the insured's own work are typically excluded. However, liability assumed under an insured contract is generally covered, meaning it is not excluded. This refers to the liability that a business assumes under a contract, as long as the contract qualifies as an "insured contract" as defined in the policy.Rate this question:
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- 9.
What is the time limit for Extended Business Income coverage under the BOP?
- A.
30 days
- B.
45 days
- C.
60 days
- D.
90 days
Correct Answer
A. 30 daysExplanation
A is correct. Extended Business Income coverage begins after the insured's operations are resumed and continues until the insured is restored to the previous earning condition or for 30 consecutive days (unless a different length of time is specified in the declarations).Rate this question:
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- 10.
For how long after the date of a direct physical loss will the insurance company pay for extra expenses under the extra expense additional coverage?
- A.
30 days
- B.
90 days
- C.
. 180 days
- D.
12 months
Correct Answer
D. 12 monthsExplanation
D is correct. The insurance company will pay for extra expenses that occur within 12 consecutive months after the date of the direct physical loss.Rate this question:
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- 11.
Unless a higher limit is shown in the declarations, what is the limit on coverage for business income from dependent properties?
- A.
$5,000
- B.
$10,000
- C.
$50,000
- D.
$100,000
Correct Answer
A. $5,000Explanation
A is correct. The default limit for coverage of business income from dependent properties is $5,000.Rate this question:
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- 12.
What is the discovery period for coverage of losses under the employee dishonesty optional coverage?
- A.
One year from the date of the dishonest act
- B.
One year from the end of the policy period
- C.
Three years from the date of the dishonest act
- D.
Three years from the end of the policy period
Correct Answer
B. One year from the end of the policy periodExplanation
B is correct. The discovery period during which a claim for this coverage can be filed ends one year from the end of the policy period.Rate this question:
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- 13.
Which of the following is covered under personal and advertising injury liability coverage in the BOP?
- A.
Slander and libel
- B.
Malicious prosecution
- C.
Copyright infringement
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
A15: D is correct. Personal and advertising injury covers all of the items listed plus false arrest, wrongful eviction, wrongful entry, invasion of the right of private occupancy, and use of another's advertising idea in an advertisement.
A15: D is correct. Personal and advertising injury covers all of the items listed plus false arrest, wrongful eviction, wrongful entry, invasion of the right of private occupancy, and use of another's advertising idea in an advertisementRate this question:
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Current Version
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Aug 12, 2024Quiz Edited by
ProProfs Editorial Team -
Feb 25, 2009Quiz Created by
Fsspc
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