What Are Businessowners
Policy Insurance Endorsements?

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What Are Businessowners Policy Insurance Endorsements?

What Are Businessowners Policy Insurance Endorsements?

What Are Businessowners Policy Insurance Endorsements?. A businessowners policy insurance endorsement can either add, remove or exclude certain coverages. It's a form that becomes part of your BOP insurance policy, altering your policy coverage.

For example, any changes made to the basic BOP policy the commercial insurance carrier files with the state regulators is done by using endorsements. Common changes might include: Changing the business address, adding more coverage, excluding coverage for specific exposures.

Businessowners endorsements allow you to make these changes - without having to buy another policy or take the chance of having risks go uninsured.

So what are businessowners policy insurance endorsements? Read on to discover the many types of endorsements available for businessowners policy insurance policies.

What are businessowners policy insurance endorsements? Endorsements modify the basic BOP to either add, delete, or exclude certain types of coverage.

BUSINESSOWNERS POLICY ENDORSEMENTS NUMBERING


So what are businessowners policy insurance endorsements?. They are arranged by form number and title; the list includes a brief explanation of the use for each form.

The ten-digit numbering sequence of ISO forms and endorsements has a very specific meaning:
  • The first two entries are alphabetical characters that indicate the line of insurance involved. For example, BP denotes Businessowners Program.
  • The next two digits designate the specific insurance category. Additional detail and information on these categories is in the next section below.
  • The next two digits are the form or endorsement number within the insurance category.
  • The last four digits are the edition date of the endorsement expressed in month and year format. These digits are not used in this analysis.

Form Endorsement
BP DSDeclarations And Schedules
BP INIndex
BP 00Coverage Form
BP 03Deductible Endorsements
BP 04Additional Coverage Endorsements
BP 05Miscellaneous Endorsements, Exclusions, And Schedules
BP 07Contractors Endorsements
BP 08Professional Liability Endorsements
BP 10Causes Of Loss Endorsements
BP 12General Endorsements
BP 14Coverage Endorsements and Exclusions
BP 15Limited Data Liability Coverage Endorsements
BP 17Condominium Coverage Endorsements


What Are BP DS - Declarations And Schedules?

The BP DS - Declarations And Schedules are as follows:

BP DS 01-Businessowners Policy Declaration

This is the declarations for the 07 13 edition of the ISO Businessowners Policy. The 07 13 changes reflect and match the changes in BP 00 03-Businessowners Coverage Form.

BP DS 02-Apartment Buildings Supplemental Schedule

This schedule supplements BP DS 01-Businessowners Policy Declarations when insuring apartment buildings and including BP 07 75-Apartment Buildings.

BP DS 03-Restaurants Supplemental Schedule

This schedule supplements BP DS 01-Businessowners Policy Declarations when insuring restaurants and including BP 07 78-Restaurants.

BP DS 06-Flood Coverage Schedule

This schedule supplements BP DS 01-Businessowners Policy Declarations and is used when BP 10 79-Flood Coverage is provided. It has spaces to list and describe the locations covered, the deductibles that apply, and for limits on either a blanket basis for all coverages at all locations or for scheduled limits for specific coverages at each location. The 07 13 edition adds a provision for a limited exception and addresses Underlying Insurance Waivers.

BP DS 07-Photography-Supplemental "Photographic Equipment" Schedule

This schedule is used to list and describe individual photographic equipment and its/their value(s).

What Is The BP IN - Index?

The BP IN - Index? is as follows:

BP IN 01-Businessowners Coverage Form Index

This index is used to locate the various parts of BP 00 03-Businessowners Coverage Form. The 07 13 changes align with the pagination and other changes in the 07 13 edition of BP 00 03-Businessowners Coverage Form.

What Is The BP 00 - Coverage Form?

The BP 00 - Coverage Form is as follows:

BP 00 03-Businessowners Coverage Form

The policy wording admonishes the reader to read the entire policy because there are restrictions. Only by reading the policy can the policyholder be aware of its duties, its rights and available coverage.

The phrase "named insured" is not used in the coverage form. Instead the terms you and your are used throughout and refer to the insured (or insureds) shown on the declarations.

The phrase "insurance company" is also not used. Instead the terms we, us, and our are used when referring to the insurance company that is providing coverage.

Under Section II – Liability – an important term is "insured." Section C. The C. Who Is an Insured explains which persons or organizations qualify as insureds. Words and phrases that have special meanings are defined. Section H. Property Definitions at the end of Section I–Property and Section F. Liability and Medical Expenses Definitions at the end of Section II–Liability list the terms and their definitions.

What Are BP 03 - Deductible Endorsements?

The BP 03 - Deductible Endorsements are as follows:

BP 03 12-Windstorm or Hail Percentage Deductibles

This endorsement makes windstorm or hail deductibles of 1%, 2% or 5% available. The deductible selected applies separately to each building if more than one building is involved, to the building and business personal property in any single building, to business personal property in each building if more than one building is involved, and to personal property in the open.

What Are BP 04 - Additional Coverage Endorsements?

The BP 04 - Additional Coverage Endorsements are as follows:

BP 04 01-Comprehensive Business Liability Exclusion (All Hazards in Connection with Designated Premises or Operations)

This endorsement excludes premises and operations, products/completed operations, and medical payments coverages at specific designated premises on the endorsement schedule or the declarations.

BP 04 02-Additional Insured-Managers or Lessors of Premises

This endorsement adds the owner, lessor, or property manager as an additional insured for liability coverage at locations the named insured leases and occupies.

BP 04 04-Hired and Non-Owned Auto Liability

This endorsement is used only when the named insured does not own vehicles and does not have commercial automobile coverage. Hired autos are leased, hired, or borrowed, except from employees or members of their households, or from partners or executive officers. It does not include mobile equipment. This endorsement protects the named insured if an employee uses his or her car in the business and is different than hired auto liability coverage. If the named insured form of business is a partnership, non-owned auto liability coverage does not apply to autos a partner owns. This coverage is excess over primary insurance that applies to any hired or non-owned autos.

BP 04 06-Additional Insured-Controlling Interest

This endorsement includes as an additional insured the party that financially controls the named insured or for the premises it owns, maintains, or controls for the period that it occupies those premises. However, there is no coverage for structural alterations, new construction, or demolition the party might perform.

BP 04 07-Additional Insured-State or Governmental Agency or Subdivision or Political Subdivisions-Permits or Authorizations Relating to Premises

This endorsement was previously BP 04 07-Additional Insured-State or Political Subdivisions-Permits Relating to Premises. It adds a state or governmental agency or subdivision or political subdivision as an additional insured for certain hazards for which it issued a permit or authorization to the named insured in connection with the premises. Examples include permits issued for advertising signs, awnings, canopies, driveways, manholes, street banners or decorations, or to construct, erect, or remove elevators.

BP 04 08-Additional Insured-Townhouse Associations

This endorsement gives additional insured status to individual townhouse owners for their liability as members of the townhouse association. Coverage does not apply to liability of individual unit owners that arises out of real property titled to them.

BP 04 09-Additional Insured-Mortgagee, Assignee, or Receiver

This endorsement includes as an additional insured a person or organization with respect to its liability as a mortgagee, assignee, or receiver that arises out of owning, maintaining, or using the named insured's premises. However, there is no coverage for structural alterations, new construction, or demolition operations.

BP 04 10-Additional Insured-Owners or Other Interests from Whom Land Has Been Leased

This endorsement adds as an additional insured the owner or another interest from which the named insured has leased land for liability that arises out of owning, maintaining, or using land. Coverage does not apply to events that occur after the lease ends or to any structural alterations, new construction, or demolition operations.

BP 04 11-Additional Insured-Co-Owner of Insured Premises

This endorsement adds as an additional insured the person or organization on the endorsement schedule that owns the scheduled premises in common with the named insured with respect to liability coverage as co-owner of the premises.

BP 04 12-Limitation of Coverage to Designated Premises or Project

This restrictive endorsement is intended to provide coverage for either a specific scheduled premise or a specific scheduled operation/project. Some significant lawsuits found off-premises coverage in the prior edition so the wording in the new version is much more precise. Of particular note is that the phrase "arising out of" has been eliminated when referring to the premises. The goal is to cover ONLY injuries that occur on the premises itself and to not cover injuries from activities or decisions that might emanate from that premises.

BP 04 13-Additional Insured-Engineers, Architects, or Surveyors

This endorsement includes as an additional insured an architect, engineer, or surveyor the named insured hires, However, this is only with respect to liability that arises from the named insured's actions or omissions or the actions or omissions of others that act on its behalf with respect to the named insured's premises or work performed on its behalf. Coverage applies to ongoing operations but not to completed operations.

BP 04 15-Spoilage Coverage

This endorsement covers spoilage losses to perishable stock the insured owns. The 07 13 changes are editorial in nature to match similar editorial changes in BP 00 03-Businessowners Coverage Form and do not affect coverage.

BP 04 16-Additional Insured-Lessor of Leased Equipment

This endorsement extends liability coverage to the person or organization on the endorsement schedule that leases equipment to the named insured. Coverage applies to only liability that arises out of the named insured maintaining, operating, or using the lessor's equipment. Spaces are provided to describe the leased equipment and the location(s) where it is kept.

BP 04 17-Employment-Related Practices Exclusion

This endorsement excludes liability that arises out of employment-related practices. Examples are refusal to employ, termination of employment, coercion, demotion, evaluation, reassignment, discipline, defamation, harassment, humiliation, discrimination, malicious prosecution, or other employment-related practices, policies, acts, or omissions. It also excludes consequential injuries that result from these practices, whether the event that caused the injury occurs before, during, or after the person's employment.

BP 04 19-Amendment-Liquor Liability Exclusion-Exception for Scheduled Activities

This endorsement excludes losses caused or contributed to by any insured that involve intoxication of any person, even if due to alcohol that others bring to the premises, furnishing liquor to minors or persons already under the influence, or for liability assumed under a statute concerning distribution of liquor. It applies to all cases that involve alcoholic beverages, regardless of whether or not the insured is in the liquor business. This exclusion does not apply to any premises or activity listed in the schedule.

BP 04 30-Protective Safeguards

This endorsement is used when a rate or premium credit applies to reflect the specific protective safeguards listed on the endorsement schedule as being installed at the designated location. The named insured agrees to maintain them in proper working order at all times or an otherwise covered loss is excluded. The warranty nature of this endorsement means that a loss can be excluded even if there is no relationship between the lack of a working protective safeguard and the loss that occurred. The 07 13 edition adds a description and symbol for hood-and-duct fire extinguishing systems.

BP 04 31-Food Contamination

This endorsement pays the costs to clean equipment, replace ruined food, and limited expenses for advertising to restore the named insured's business reputation if a governmental entity closes the business because of suspected food contamination. The limits are $10,000 for cleanup and replacement and $3,000 for additional advertising expense unless other limits are selected. Section I-Property Exclusion B.1.j. Virus or Bacteria does not apply with respect to the coverage this endorsement provides. The 07 13 edition broadens the definition of food contamination and covers vaccinations to all employees, including leased and temporary employees, even if the infection is only potential.

BP 04 37-Exclusion-Personal and Advertising Injury

This endorsement deletes all personal and advertising injury liability coverage.

BP 04 38-Medical Expenses-Exclusion

This endorsement excludes medical expenses at the locations or for the classifications on the endorsement schedule. Coverage is added to the Liability Supplementary Payments for first aid administered to others at the time of an accident.

BP 04 39-Abuse or Molestation Exclusion

This endorsement excludes injury or damage due to abuse and molestation. This includes negligent employment, investigation, supervision, failure to report to proper authorities, or retention of individuals who committed or were involved in such acts.

BP 04 40-Coverage for Injury to Leased Workers

This endorsement provides employers liability coverage for leased and temporary workers by changing the definition of employee to not include leased worker or temporary worker. This change applies to only the Employers Liability exclusion. It is recommended for businesses that do not carry workers compensation insurance that use only leased employees.

BP 04 41-Business Income Changes-Time Period

The endorsement eliminates the waiting period before a business is reimbursed for loss of income. The coverage period is four weeks. The 07 13 edition reflects changes made in BP 00 03 5. Additional Coverages m. Business Income from Dependent Properties.

BP 04 46-Ordinance or Law Coverage

Ordinance or law construction considerations have become more important in recent years. Building codes are upgraded regularly. This improves buildings' ability to resist windstorm, earthquake, fire, and collapse and accommodates handicapped persons under the Americans with Disabilities Act (ADA). Older buildings are more likely to encounter ordinance or law issues and their related costs as a precondition to rebuilding after a loss.

The property section of the Insurance Services Office (ISO) Businessowners Coverage Form excludes costs to comply with construction requirements established by ordinances or laws. Further, the language in the loss payment section reinforces this by stating that replacement cost does not include any additional costs due to complying with any laws or ordinances that relate to construction.

The BOP does include Increased Cost of Construction coverage under its Additional Coverage section subject to a $10,000 limit. Examples of such increased costs that could be paid are changing bathrooms to be handicap accessible, adding wheelchair ramps, lowering water fountains, and similar requirements that ADA mandates. While $10,000 maybe helpful for such minor changes it is inadequate if an ordinance requires the adding of automatic sprinklers or widening of the hallways.

The amount of ordinance or law coverage needed depends on the specific building and its occupancy. Coverage may not be needed at all if the building is newer or there are not any specific ordinances or laws that apply to the specific occupancy. For others, it might be the difference between resuming operations and closing for good after a covered loss.

The good news is that BP 04 46–Ordinance or Law Coverage is available. It covers both the property and the business income associated with complying with ordinances and laws that had been grandfathered but come into play after a covered direct damage loss occurs.

BP 04 47-Additional Insured-Vendors

This endorsement amends BP 00 03 Section II-Liability C. Who is an Insured. It adds products liability coverage for vendors named on the endorsement schedule as additional insureds for the products listed. It covers bodily injury or property damage liability that arises from the named insured's products the vendor sells or distributes in the course of its normal business operations, subject to the endorsement's exclusions and limitations.

BP 04 48-Additional Insured-Designated Person or Organization

This endorsement amends BP 00 03 Section II-Liability C. Who is an Insured. It allows the named insured contractor to cover any additional insured when no other specific additional insured endorsement applies. It covers the party named on the endorsement schedule for bodily injury or property damage liability caused by the named insured's acts or omissions or by acts or omissions of others that act on its behalf. Loss or damage must occur in the course of the insured's ongoing operations or at premises it owns or rents, subject to the endorsement's exclusions and limitations.

BP 04 49-Additional Insured-Engineers, Architects, or Surveyors Not Engaged by the Named Insured

This endorsement allows the named insured contractor to include as additional insureds engineers, architects, or surveyors that common project owners hire or that a written contract or agreement requires adding. It protects the party named on the endorsement schedule for bodily injury or property damage liability that arises from the named insured's ongoing operations, subject to the endorsement's exclusions and limitations. Covered losses must be caused by the named insured's act or omission or by acts or omissions of others that act on its behalf. Losses caused solely by the designated additional insured are excluded.

BP 04 50-Additional Insured-Owners, Lessees, or Contractors-Scheduled Person or Organization

This endorsement covers any person or organization on the endorsement schedule for which the named insured contractor performs operations. Coverage applies to bodily injury or property damage liability that arises out of the named insured's ongoing operations. However, it excludes completed operations and is subject to certain exclusions and limitations. Covered losses must be caused by the named insured's act or omission or by acts or omissions of others that act on its behalf. Losses caused solely by the designated additional insured are excluded.

BP 04 51-Additional Insured-Owners, Lessees, or Contractors-With Additional Insured Requirement in Construction Contract

This endorsement covers any party for whom the named insured contractor performs work as a written contract or written agreement requires. It protects the party for bodily injury or property damage liability that arises from the named insured's operations specified in the contract or agreement and applies only until the contract or agreement ends. Covered losses must be caused by the named insured's act or omission or by acts or omissions of others that act on its behalf. Losses caused solely by the designated additional insured are excluded.

BP 04 52-Additional Insured-State or Governmental Agency or Subdivision or Political Subdivision-Permits or Authorizations

This endorsement was previously BP 04 52-Additional Insured-State or Political Subdivisions-Permits. It covers any state or governmental agency or subdivision or political subdivision on the endorsement schedule that the named insured contractor must include as an additional insured in order to obtain needed work permits. Losses caused solely by the designated additional insured are excluded.

BP 04 53-Water Back-Up and Sump Overflow

This endorsement covers loss or damage caused by or that results from water that backs up from a sewer or drain or from overflow of a sump or sump pump that damages covered property at locations on the endorsement schedule. This is essentially an additional specific covered cause of loss. Coverage does not apply if the loss was due to negligent maintenance of the pump or if an insured failed to clear an obstruction from a drain and the obstruction caused the damage. The $5,000 annual aggregate limit of insurance per location can be increased or decreased. This endorsement also covers loss of Business Income or Extra Expense incurred as a result of these losses at locations on the endorsement schedule. The $5,000 annual aggregate limit of insurance per location can be increased or decreased. The 07 13 edition clarifies that "drain" includes a roof drain and related fixtures. It also states that there is no coverage when a sump pump fails because of power failure unless the coverage form covers power failure.

BP 04 54-Newly Acquired Organizations

This endorsement covers newly acquired organizations or organizations the named insured forms during the policy period for up to 90 days or until expiration, whichever occurs first.

BP 04 55-Broadened Coverage for Damage to Premises Rented to You

The unendorsed Businessowners Coverage Form excludes loss or damage to buildings that the named insured occupies as a tenant. The only exception is when damage is due to fire. This is considered "Damage to Premises Rented to You" coverage.

The default limit for this fire coverage is $50,000 but a higher limit can be purchased. The increased limit is then shown on the Declarations. The maximum limit is $1,000,000.

However, there are two important limitations. The coverage is a sublimit of the Liability and Medical Expenses limit and the only covered cause of loss is fire. When a tenant-insured has exposures in excess of $50,000 and/or needs coverage for causes of loss other than fire - this is an endorsement that can be attached to the BOP.

BP 04 56-Utility Services-Direct Damage

This endorsement extends property damage coverage to loss or damage to covered property due to service from off-premises water, communication, power supply services, and overhead power transmission and communication lines being interrupted. However, it excludes loss or damage to electronic data. The utility service property does not have to be outside a covered building. The 07 13 edition states that transmission lines include any line that transmits power or communication service. This includes distribution lines.

BP 04 57-Utility Services-Time Element

This endorsement extends time element or loss of income coverage to apply to loss of business income or extra expense that results from interruption of off-premises water, communication, power supply services, and overhead power transmission and communication lines, but excludes loss or damage to electronic data. The utility service property does not have to be outside a covered building. The 07 13 edition adds wastewater removal property to the list of covered utility services and states that transmission lines include any line that transmits power or communication service. This includes distribution lines.

BP 04 58-Business Income and Extra Expense Coverage for Year 2000 Computer-Related and Other Electronic Problems

This endorsement insures the named insured's business against loss of business income or extra expenses incurred due to computer programming or processing errors related to a system or software's inability to address, handle, and resolve calendar dates or times. It pays for only loss of business income or extra expenses that relate directly to computer processing problems. The annual aggregate limit for all losses and/or expenses is $25,000.

BP 04 64-Year 2000 Computer-Related and Other Electronic Problems-Limited Coverage Options

This endorsement provides limited protection for bodily injury, property damage, and personal and advertising injury liability because of computer programming or processing errors that a system or software could not address, handle, or resolve that involved calendar dates or times. It extends the coverage and limits to apply to such losses but only to locations, products, or operations on the endorsement schedule.

BP 04 71-Exclusion-Volunteer Workers

This endorsement removes the term volunteer workers from the coverage form and eliminates volunteer workers as insureds.

BP 04 83-Removal of Insurance-To-Value Provision

This endorsement eliminates the requirement that property must be insured to 80% of replacement value at the time of loss in order for the loss to be adjusted on a replacement cost basis.

BP 04 84-Functional Building Valuation

This condition replaces the valuation loss condition by agreeing to pay to replace a damaged building on the same site with a functionally equivalent building. In case of a partial loss, the damaged portion of the building is repaired with less costly material. The named insured should carefully evaluate and consider the building limit it chooses when it selects this option. This endorsement includes ordinance or law provisions for direct damage loss. It also has an option to include business income and extra expense coverage for the additional time needed to comply with ordinance or law changes. The 07 13 changes are editorial in nature to match similar editorial changes in BP 00 03 and do not affect coverage.

BP 04 85-Functional Business Personal Property Valuation

This condition replaces the valuation loss condition. It agrees to pay to replace damaged business personal property with functionally equivalent property or property valued on a market value basis. The named insured should carefully evaluate and consider the business personal property limit it chooses when it selects this option.

BP 04 86-Vacancy Changes

This endorsement allows the minimum percentage of building occupancy used to determine vacancy in a covered location to be increased or decreased from 31%. It applies to only the premises and building(s) on the endorsement schedule.

BP 04 87-Vacancy Permit

This endorsement amends the vacancy provision to temporarily suspend applying the vacancy provision at only the premises and buildings on the endorsement schedule for the time period selected. It has some flexibility in that loss or damage due to vandalism or sprinkler leakage can be excluded during the period of suspension.

BP 04 88-Liquor Liability

This endorsement adds liquor liability coverage by deleting the liquor liability exclusion. It is used in cases where an insured has limited exposure to such losses. It should not be used when BP 04 89-Liquor Liability Coverage is used.

BP 04 89-Liquor Liability Coverage

This endorsement adds liquor liability coverage. It applies to businesses that have significant liquor liability exposures and covers bodily injury and property damage liability related to their furnishing liquor. Coverage does not apply if the named insured operates without a license when legally required to have one. It is limited to the aggregate and per-cause limits on the endorsement schedule.

BP 04 90-Pollution Exclusion-Limited Exception for a Short-Term Pollution Event

This endorsement adds some liability coverage for bodily injury or property damage related to specific short-term pollution events under certain circumstances. It defines a short-term pollution event and this definition and other provisions provide limited coverage for accidental, non-recurring pollution losses. However, a number of other pollution exclusions and exceptions still apply. As a result, this endorsement should be reviewed carefully before it is recommended as a possible coverage solution for the named insured's pollution-related exposures.

BP 04 91-Pollution Exclusion-Limited Exception for Designated Pollutant(s)

This endorsement adds both on-site and off-site liability coverage for bodily injury or property damage related to damage caused by the types of pollutants described on the endorsement schedule. However, coverage does not extend to losses that involve handling, transporting, storing, disposing of, treating, or processing the described pollutants.

BP 04 92-Total Pollution Exclusion

This endorsement completely excludes bodily injury or property damage loss or damage caused by or that results from pollution. There are no exceptions.

BP 04 93-Total Pollution Exclusion with a Building Heating Equipment Exception and a Hostile Fire Exception

This endorsement completely excludes bodily injury or property damage loss or damage that pollution causes. However, it has exceptions that cover loss or damage that involves heat, smoke, and fumes that a hostile fire generates and/or by heating, cooling, dehumidifying, and water heating equipment.

BP 04 94-Limited Pollution Liability Extension

This endorsement adds limited pollution liability coverage. It eliminates the part of the exclusion that applies at or from any premises that the named insured owns rents, occupies, or has loaned to it. It should be reviewed carefully to determine if the broadened coverage is appropriate for the named insured. It has its own aggregate limit.

BP 04 97-Waiver of Transfer of Rights of Recovery against Others to

This endorsement eliminates the insurance company's ability to secure subrogation rights by preventing it from proceeding against another party that may be responsible for damages it paid. The company waives exercising its rights against only the party(ies) on the endorsement schedule.

BP 04 98-Employee Benefits Liability Coverage

This endorsement covers oversights and errors the named insured makes in administering its various employee benefits programs. It does not cover improper or inadequate advice regarding investments or the actual investment decisions the retirement plan or pension administrator makes. This endorsement should not be used in place of fiduciary liability coverage. Any business subject to the requirements of the Employee Retirement Income Security Act of 1974 (ERISA) should have fiduciary liability coverage.

Employee benefits liability coverage may not seem important if the insured business does not provide group medical, life benefit, or retirement programs. However, most businesses offer vacation, sick leave, and maternity leave and nearly all businesses must provide workers compensation, social security benefits, and unemployment insurance. Errors in administering any of these could result in lawsuits and coverage would be available only if this endorsement was attached.

Note: This endorsement provides coverage on a claims-made basis and is subject to a retroactive date.

BP 04 99-Extended Reporting Period for Employee Benefits Liability Coverage

This endorsement is used with BP 04 98-Employee Benefits Liability Coverage. Coverage applies on a claims-made basis and this endorsement gives the named insured the option to extend the time period to report losses. This is very important if coverage changes from a claims-made to an occurrence basis. The 07 13 changes are editorial in nature to match similar editorial changes in BP 00 03 and do not affect coverage.

What Are BP 05 - Miscellaneous Endorsements, Exclusions, And Schedules?

The BP 05 - Miscellaneous Endorsements, Exclusions, And Schedules are as follows:

BP 05 01-Calculation of Premium

This endorsement states that premiums for subsequent policy periods are calculated according to rates in effect on the renewal or anniversary date.

BP 05 15 Disclosure Pursuant to Terrorism Risk Insurance Act

BP 05 17-Exclusion-Silica or Silica-Related Dust

This endorsement excludes bodily injury, property damage, and personal and advertising injury liability losses associated with exposure to silica or silica-related dust. It includes definitions for silica and silica-related dust.

BP 05 23-Cap on Losses from Certified Acts of Terrorism

BP 05 24-Exclusion of Certified Acts of Terrorism

BP 05 26-Exclusion of Certified Acts of Terrorism Involving Nuclear, Biological, or Chemical Terrorism: Cap on Covered Certified Acts Losses

BP 05 27-Limitations of Coverage for Certified Acts of Terrorism

BP 05 38-Exclusion of Other Acts of Terrorism Committed Outside the United States: Cap on Losses from Certified Acts of Terrorism

BP 05 41-Exclusion of Certified Acts of Terrorism and Exclusion of Other Acts of Terrorism Committed Outside the United States

BP 05 42-Exclusion of Punitive Damages Related to a Certified Act of Terrorism

BP 05 47-Computer Fraud and Funds Transfer Fraud

This endorsement adds computer fraud and funds transfer fraud crime coverage if a computer is used to transfer money, securities, or other property from inside the insured's premises or banking institution up to the limit on the endorsement schedule. In addition, if fraudulent instructions given to a financial institution result in unauthorized transfer of the named insured's funds, coverage applies up to the limit on the endorsement schedule. Coverage applies even if the transfer is based on unauthorized instructions or false pretense. However, it excludes using credit and other cards and the information they contain. The 07 13 changes are editorial in nature to match similar editorial changes in BP 00 03 and do not affect coverage.

BP 05 64-Conditional Exclusion of Terrorism (Relating to Disposition of Federal Terrorism Risk Insurance Act)

Note: The 01 15 Edition has clarified the application of other exclusion wording by adding separate paragraph D.

BP 05 65-Conditional Exclusion of Terrorism Involving Nuclear, Biological, or Chemical Terrorism (Relating to Disposition of Federal Terrorism Risk Insurance Act)

Note: The 01 15 Edition has clarified the application of other exclusion wording by adding separate paragraph D.

BP 05 66-Conditional Limitation of Coverage for Terrorism-Sub-Limit on Annual Aggregate Basis (Relating to Disposition of Federal Terrorism Risk Insurance Act) (01 15 change)

Note: The 01 15 Edition has clarified the application of other exclusion wording by adding separate paragraph D.

BP 05 67-Exclusion of Terrorism

BP 05 68-Exclusion of Terrorism Involving Nuclear, Biological, or Chemical Terrorism

BP 05 69-Limitation of Coverage for Terrorism-Sub-Limit on Annual Aggregate Basis

BP 05 70-Disclosure of Premium through End of Year for Certified Acts of Terrorism Coverage (Pursuant to Terrorism Risk Insurance Act)

BP 05 71-Disclosure of Premium and Estimated Premium for Certified Acts of Terrorism Coverage (Pursuant to Terrorism Risk Insurance Act)

The 01 15 Edition has relabeled the 01 07's Paragraph C, Possibility of Additional or Return Premium as Paragraph D. It now includes a new Paragraph C that notifies that the insurer's payment obligation is capped in the event that qualifying terrorists act damage exceeds $110 billion in a given calendar year.

BP 05 76-Changes-Limited Fungi Coverage

This endorsement is used to increase the sub-limit of insurance for fungi, wet rot, and dry rot coverage, to designate the location(s) covered, and to permit different limits at different locations based on entries on the endorsement schedule. The number of days for Business Income and/or Extra Expense coverages can be changed from 30 days.

BP 05 77-Fungi or Bacteria Exclusion (Liability)

This endorsement excludes bodily injury, property damage, or personal and advertising injury liability losses due to exposure to fungi or bacteria as defined except for certain edible fungi or bacteria, such as mushrooms.

BP 05 78-Limited Fungi or Bacteria Coverage (Liability)

This endorsement provides limited coverage for the fungi and bacteria that BP 05 77-Fungi or Bacteria Exclusion (Liability) excludes.

BP 05 89-Employment-Related Practices Liability Endorsement

This endorsement provides claims-made liability coverage with defense included within the limits entered on the endorsement schedule. It has a retroactive date and an extended reporting period. Coverage applies for injuries to employees due to demotion, wrongful termination, wrongful denial of opportunities, wrongful hiring and supervision, retaliatory actions, coercion, harassment, and other types of work-related discrimination, libel, humiliation, and similar acts. This endorsement is similar to EP 00 01-Employment-Related Practices Coverage Form.

BP 05 93-Loss of Rental Value-Landlord as Designated Payee

This endorsement broadens the definition of rental value to include all charges the tenant is contractually obligated to pay on the property owner's behalf.

BP 05 94-Electronic Commerce (E-Commerce)

This endorsement is similar to CP 04 30-Electronic (E-Commerce) used with the ISO Commercial Property Program.

BP 05 95-Electronic Data Liability-Limited Coverage

This endorsement eliminates the Electronic Data exclusion and replaces it with one that eliminates all damages (bodily injury and property damages) due to access or disclosure of confidential data. It continues to exclude damages due to loss of electronic data unless physical damage to tangible property occurs first. It also excludes personal and advertising injury electronic data damages due to access or disclosure of confidential information. Electronic data is not considered tangible property. This coverage has a separate occurrence limit on the endorsement schedule.

BP 05 96-Electronic Data Liability-Broad Coverage

This endorsement covers damages due to Electronic Data on a claims-made basis with a retroactive date and an extended reporting period. It has its own insuring agreement, exclusions, and limits. It amends various conditions, amends and adds definitions, and changes the definition of Who is an Insured. It is similar to CG 00 65-Electronic Data Liability Coverage Form.

The 05 14 adds wording that eliminates all damages due to access or disclosure of confidential data.

BP 05 97-Extended Reporting Period for Electronic Data Liability-Broad Coverage

This endorsement initiates the extended reporting condition time period that BP 05 96-Electronic Data Liability-Broad Coverage requires. It applies and is effective only after the full premium is paid. The 07 13 edition states that the Extended Reporting Period Aggregate Limit equals the Electronic Data Liability Annual Aggregate Limit that applies.

BP 05 98-Amendment of Insured Contract Definition

This endorsement amends the definition of Insured Contract. It reduces coverage by changing paragraph 9. f. in two ways. First, paragraph 9. f. applies only when the named insured or a party that works on its behalf causes the bodily injury or property damage. Second, it applies only if the law permits the named insured to assume the liability.

What Are BP 07 - Contractors Endorsements?

The BP 07 - Contractors Endorsements are as follows:

BP 07 01-Contractors' Installation, Tools, and Equipment Coverage

This endorsement must be attached to any Insurance Services Office (ISO) Businessowners Coverage Form issued to a contractor. Its primary intent is to eliminate all off premises coverage and then add the coverage back in a more controlled way. This is understandable because the Businessowners Coverage Form was not originally designed for insureds that have extensive off premises exposures. Many contractors have off premises exposures with little or no on premises exposure. This endorsement attempts to match the exposure with the premium charged.

Important Note: This is intended for insureds with comparatively small exposures. Inland marine coverage forms or policies should be used if the insured has more significant exposures because they provide broader coverage. However, even with the separate inland marine coverage, this endorsement continues to be a mandatory endorsement.

BP 07 02-Amendment-Aggregate Limits of Insurance (Per Project)

This endorsement changes the aggregate limit of insurance under liability coverage for the products-completed operations hazard to apply per project.

BP 07 03-Business Liability Coverage-Property Damage Liability Deductible (Per-Claim Basis)

This endorsement adds a property damage liability per claim deductible.

BP 07 04-Business Liability Coverage-Property Damage Liability Deductible (Per-Occurrence Basis)

This endorsement adds a property damage liability per occurrence deductible.

BP 07 07-Business Liability Coverage-Amendment of Liability and Medical Expenses Limits of Insurance

This endorsement is used to provide higher aggregate liability limits. It increases the aggregate limit for the products-completed operations hazard to three times the liability and medical expenses limit. It also increases the aggregate limit for all other occurrences to two times the liability and medical expenses limit.

BP 07 08-Pesticide or Herbicide Applicator-Limited Pollution Coverage

This endorsement amends the pollution exclusion so that limited pollution coverage applies for the operations described on the endorsement schedule. This is subject to the named insured meeting or complying with all federal, state, or local governmental statutes, ordinances, regulations, or license requirements. This endorsement title previously was BP 07 08-Pesticide or Herbicide Applicator Coverage. The 07 13 edition changes the endorsement title to better state the coverage it provides.

BP 07 10-Motels

This endorsement broadens the coverage provided to include exposures common to motels, such as property of others, personal property in rooms, lock replacement, and liability for guests' property.

BP 07 11-Motel-Liability for Guests' Property in Safe Deposit Boxes

This endorsement broadens the coverage provided to include liability for guest property stored in safety deposit boxes. Coverage does not apply to liability that business liability coverage excludes or to loss or damage caused by or that results from fire, dishonest acts of any insured, acts committed by parties an insured held harmless, and property lost, damaged, or seized related to governmental acts.

BP 07 12-Self-Storage Facilities

This endorsement provides coverage designed to protect self-storage operations, such as accrued rent, and liability related to disposal of customer property.

BP 07 75-Apartment Buildings

The Insurance Services Office (ISO) Businessowners Program includes apartment buildings as an eligible class of business. ISO recognized that this class faces exposures requiring coverages that are not in the unendorsed Businessowners Coverage Form. This endorsement adds a number of coverages, considerations, and definitions that respond to those exposures.

BP 07 76-Apartment Buildings-Liability for Loss or Damage to Tenants' Auto (Legal Liability Coverage)

This endorsement covers the named insured's legal liability for damages for direct physical loss or damage and resulting loss of use to tenants' autos at premises on the declarations caused by or that results from a covered cause of loss. The 07 13 changes are editorial in nature to match similar editorial changes in BP 00 03 and do not affect coverage.

BP 07 77-Fine Arts Coverage

This endorsement is an additional coverage under Section I-Property. It covers loss or damage caused by or that results from a covered cause of loss to the named insured's fine arts or to fine arts of others in its care, custody, or control for up to $25,000 in any one occurrence.

BP 07 78-Restaurants

The Insurance Services Office (ISO) Businessowners Program includes a variety of restaurants as eligible classes of business. Restaurants present unique exposures and require coverages that are not in the unendorsed Businessowners Coverage Form. This endorsement adds a number of coverages, considerations, and definitions that respond to those needs.

BP 07 79-Restaurants-Loss or Damage to Customers' Autos (Legal Liability Coverage)

This endorsement covers the named insured's legal liability for damages for direct physical loss or damage to and resulting loss of use of customers' autos left in its care, custody, or control at or temporarily away from premises on the declarations. The damage must be caused by or result from a covered cause of loss. The 07 13 changes are editorial in nature to match similar editorial changes in BP 00 03 and do not affect coverage.

BP 07 81-Residential Cleaning Services

This endorsement adds certain coverages that residential cleaning services need. It modifies coverage under Section I-Property and provides Reward Payment coverage for up to $5,000 and a $1,000 limit for the cost to replace keys and locks at a client's residence. It extends employee dishonesty coverage to theft of specific client property by the named insured's employees. It also includes property damage to customers' property that results from its work for up to $5,000. The 07 13 changes are editorial in nature to match similar editorial changes in BP 00 03 and do not affect coverage.

BP 07 83-Photography

This endorsement provides coverages that most photography operations need.

BP 07 84-Photography-Makeup and Hairstyling

This endorsement provides limited professional liability coverage in situations where the photographer applies makeup or provides hairstyling services in conjunction with its photographic operations and activities. It can be used only if BP 07 83-Photography is attached to BP 00 03.

BP 07 87-Photography-Amendment of Coverage Territory for "Photographic Equipment"-Worldwide Coverage

This endorsement broadens the property coverage territory for photographic equipment to be worldwide. This revised territory does not include countries listed on the endorsement schedule or countries subject to trade embargoes or other economic sanctions that the United States of America imposes. It can be used only if BP 07 83-Photography is attached to BP 00 03.

What Are BP 08 - Professional Liability Endorsements?

The BP 08 - Professional Liability Endorsements are as follows:

BP 08 01-Barber Shops and Hair Salons Professional Liability

This endorsement covers loss or damage due to providing or failing to provide professional barber and hair salon services. The 07 13 edition adds wording to make it consistent with the professional liability exclusion wording change in the BP 00 03. Consider using BP 08 09-Beauty Salons Professional Liability if this coverage is too limiting.

BP 08 02-Funeral Directors Professional Liability

This endorsement covers loss or damage due to providing or failing to provide funeral directors professional services. It excludes property damage to dead bodies, caskets, and urns in the named insured's care, custody, or control unless caused by or resulting from theft or a hostile fire.

BP 08 03-Optical and Hearing Aid Establishments

This endorsement covers loss or damage due to providing or failing to provide services that involve dispensing optical or hearing aid products. The services include preparing, fitting, demonstrating, or distributing lenses and similar products or hearing aid devices. The 07 13 edition adds wording to make it consistent with the professional liability exclusion wording change in BP 00 03.

BP 08 04-Printers Errors and Omissions Liability

This endorsement covers loss or damage that results from the named insured's negligence, act, error, or omission in providing printing services.

BP 08 05-Veterinarians Professional Liability

This endorsement covers loss or damage due to providing or failing to provide professional veterinarian services.

BP 08 06-Pharmacists-Broad Coverage

This endorsement covers loss or damage due to providing or failing to provide professional pharmaceutical services. It is similar to CG 22 97-Druggists-Broadened Coverage and includes the broadened roles of druggists that some state legislatures have enacted.

BP 08 07-Pharmacists

This endorsement covers loss or damage due to providing or failing to provide professional pharmaceutical services. It does not cover the broadened roles of druggists that legislation in many states has enacted, including prescribing, consulting, or diagnosing except for administering certain vaccinations. It is similar to CG 22 69-Druggists. The 07 13 edition also adds wording to make it consistent with the professional liability exclusion wording change in BP 00 03.

BP 08 09 Beauty Salons Professional Liability

This endorsement is designed for beauty salons and is used to cover salon services beyond those that most barber shops or hair salons offer. It defines salon services to include a listing of standard services but then includes additional services described on the endorsement schedule. The 07 13 edition also adds wording to make it consistent with the professional liability exclusion wording change in BP 00 03.

What Are BP 10 - Causes Of Loss Endorsements?

The BP 10 - Causes Of Loss Endorsements are as follows:

BP 10 03-Earthquake

This endorsement covers loss or damage caused by earthquake, including volcanic eruption. It provides coverage for both direct and indirect damage but coverage for the indirect damage is not actual loss sustained for up to 12 months. Instead, the limit for all direct and indirect covered loss is not more than the building and/or business personal property limit for this coverage on the declarations. The 07 13 edition adds wording that clarifies the coverage limits.

BP 10 05-Exclusion-Year 2000 Computer-Related and Other Electronic Problems

This endorsement excludes all bodily injury, property damage, and personal and advertising injury liability that involves computer programming or processing errors related to a system or software that is unable to handle calendar dates or times.

BP 10 06-Exclusion-Year 2000 Computer-Related and Other Electronic Problems (Products-Completed Operations Hazard)

This endorsement excludes all bodily injury, property damage, and/or personal and advertising injury liability that involves computer programming or processing errors related to a system or software that is unable to handle calendar dates or times. Coverage does not apply to loss or damage related to the named insured's finished work or products.

BP 10 07-Exclusion-Year 2000 Computer-Related and Other Electronic Problems-With Exception for Bodily Injury on Your Premises

This endorsement excludes all bodily injury, property damage, and/or personal and advertising injury liability that involves computer programming or processing errors related to a system or software that is unable to handle calendar dates or times. It does not apply to bodily injury that occurs on any premises the named insured owns or rents.

BP 10 08-Year 2000 Computer-Related and Other Electronic Problems-Exclusion of Specified Coverages for Designated Locations, Operations, Products, or Services

This endorsement excludes all bodily injury, property damage, and/or personal and advertising injury liability that involves computer programming or processing errors related to a system or software that is unable to handle calendar dates or times. This is based on the coverages selected on the endorsement schedule. The selected coverages apply to the location, products, services, or operations described on the endorsement schedule.

BP 10 09-Named Perils

Early editions of the Insurance Services Office (ISO) Businessowners Program offered coverage on either a Causes of Loss–Basic Form or on a Causes of Loss–Special Form. The 2000 edition eliminated the Causes of Loss–Basic Form and offered only the Causes of Loss–Special Form. The only way to replicate that more limited BOP is to attach the BP 10 09–Named Perils endorsement to the BP 00 03–Businessowners Coverage Form.

BP 10 10-Sprinkler Leakage-Earthquake Extension

This endorsement cannot be used when BP 10 03-Earthquake applies. It covers sprinkler leakage damage caused when earthquake and volcanic eruption coverage causes the sprinkler system to discharge.

BP 10 11-Earthquake and Volcanic Action (Sub-Limit)

This endorsement provides earthquake and volcanic eruption coverage for a sub-limit. It is similar to ISO's CP 10 45-Earthquake And Volcanic Eruption Endorsement (Sub-Limit Form).

The 07 13 changes are editorial in nature to match similar editorial changes in BP 00 03 and do not affect coverage.

Note: This endorsement broadens the unendorsed Businessowners Coverage Form but is not as broad as the coverage that BP 10 03-Earthquake provides.

BP 10 79-Flood Coverage

This optional coverage can be used to write coverage on a first-dollar basis or above the federally insured limits under the National Flood Insurance Program (NFIP). The 07 13 changes are editorial in nature to match similar editorial changes in BP 00 03 and do not affect coverage.

BP 10 80- Off-Premises Interruption of Business - Vehicles And Mobile Equipment

This option provides coverage for loss caused by the unavailability of an operation's business vehicles and mobile equipment when damaged by a covered cause of loss. The selected coverage applies to property described on the endorsement and provides both business interruption and extra expense coverage.

What Are BP 12 - General Endorsements?

The BP 12 - General Endorsements are as follows:

BP 12 01-Businessowners Policy Changes

This endorsement is used to make changes in coverage. It indicates the effective date, a description of the coverage change, the new limit of insurance, the previous premium, and the new premium. Optional coverages are listed when additional or optional coverages are purchased after policy issuance. Optional coverages available are Outdoor Signs, Burglary and Robbery, Money and Securities, Employee Dishonesty, and Equipment Breakdown.

BP 12 02-Fire Department Service Contract

This endorsement is used to require that a named insured maintain a service contract with a private fire department. The 07 13 changes are editorial in nature to match similar editorial changes in BP 00 03 and do not affect coverage.

BP 12 03-Loss Payable Provisions

This endorsement is used to list loss payees, lender's loss payees, or loss payees under contracts of sale and the property to which their interests apply.

BP 12 31-Additional Insured-Building Owner

This endorsement is used to add the owner of a building as an additional insured under Section I-Property. It is used when the insured is a tenant in the building.

What Are BP 14 - Coverage Endorsements and Exclusions?

The BP 14 - Coverage Endorsements and Exclusions are as follows:

BP 14 01-Identity Fraud Expense Coverage

This endorsement adds identity fraud expense coverage with a $25,000 aggregate limit. It also provides a separate aggregate limit of $5,000 for advertising expenses the named insured incurs to restore its reputation following an identity fraud.

BP 14 02-Additional Insured-Owners, Lessees, Or Contractors-Completed Operations

Most additional insured endorsements apply to only ongoing operations. This endorsement adds the scheduled person or organization as an insured for the product-completed operations hazard.

BP 14 03-Theft of Clients' Property Coverage

This endorsement extends Employee Dishonesty Optional Coverage to include theft of a client's property while it is at the client's location. The $5,000 limit can be increased to limits of $10,000, $15,000, or $25,000. The $250 deductible in this endorsement is the only deductible that applies.

BP 14 04-Windstorm or Hail Losses to Roof Surfacing-Actual Cash Value Loss Settlement

This restrictive endorsement changes the loss payment condition with respect to only the buildings and premises on the endorsement schedule. If a wind or hail loss damages the roof surface, any loss settlement is based on actual cash value instead of replacement cost. The 07 13 edition adds a definition for roof surfacing.

BP 14 05-Additional Insured-Grantor of Franchise

This endorsement adds as an additional insured the party on the endorsement schedule that granted the franchise to the named insured.

BP 14 06-Business Income, Extra Expense, and Related Coverages Limit Of Insurance

This endorsement restricts coverage. The named insured selects a limit of insurance instead of having unlimited 12-month business income and extra expense coverage.

BP 14 07-Business Income and Extra Expense-Revised Period of Indemnity

This endorsement provides a way to increase or decrease the 12-month consecutive time period of coverage for business income and extra expense. It gives the named insured that has unique exposures the flexibility to tailor the period of time that coverage applies to match its individual circumstances. Reducing the time period should be done very cautiously because a slight amount of premium savings could significantly reduce coverage.

BP 14 08-Exclusion-Exterior Insulation and Finish Systems

This endorsement excludes coverage for losses that arise out of, are caused by, or can be attributed to any exterior insulating and finish system. It includes a definition of Exterior Insulation and Finish System.

BP 14 09-Debris Removal Additional Insurance

This endorsement is used to increase 5. Additional Coverages 1. Debris Removal in BP 00 03 from the amount in BP 00 03 to the amount on the endorsement schedule. The 07 13 edition modifies the $25,000 limit in the 07 13 edition of BP 00 03 instead of the $10,000 in previous editions.

BP 14 10-Brands and Labels

This is an optional coverage endorsement. It allows the insured to control its labeling. If a loss occurs, the insurance company agrees to settle the claim in the usual way. The difference is what then happens with any salvage the insurance company wishes to distribute. The insured can stamp "salvage" on such property as long as doing so does not cause additional damage. The insured can even remove all labels as long as doing so does not damage the property or violate any laws. The insured is reimbursed for its expenses for stamping or removing labels. However, the expense to do so, added to the value of the property cannot exceed the limit of insurance that applies. This endorsement does not usually involve a premium charge but a higher limit of insurance is usually needed because of the potential expenses that might be involved.

BP 14 11-Abuse Or Molestation Exclusion-Specified Services

This endorsement excludes coverage for injury or damage that arises from abuse or molestation of persons in any insured's care, custody, or control at the time it provides the services specified on the endorsement schedule. This exclusion is less restrictive than BP 04 39-Abuse or Molestation Exclusion.

BP 14 12-Exclusion-Erroneous Delivery or Mixture and Resulting Failure of Seed to Germinate-Seed Merchants

This endorsement excludes property damage liability due to errors in delivering seed, in the mechanical mixture of seed, or due to seed that fails to germinate.

BP 14 13-Seed Merchants-Coverage for Erroneous Delivery or Mixture (Resulting Failure of Seed to Germinate Not Included)

This endorsement excludes property damage liability due to seed failing to germinate. It also deletes Exclusion n. Damage to Impaired Property or Property Not Physically Injured under Paragraph A.1. Business Liability Coverage with respect to property damage liability that results from errors in delivering seed or in mechanically mixing seed.

BP 14 14-Seed Merchants-Coverage for Erroneous Delivery or Mixture and Resulting Failure of Seed to Germinate

This endorsement adds property damage coverage for loss that results from erroneous delivery of seed. This includes failing to deliver seed at all, delivering the wrong seed, or delivering seed at the wrong time of the year or season. It also includes errors in the mechanical mixture of seed or seed failing to germinate if the failure is caused by delivering the wrong seed, delivering seed at the wrong time of the year or season, or errors in the mechanical mixture of seed.

BP 14 15-Limited Exclusion-Personal and Advertising Injury-Lawyers

This endorsement excludes personal and advertising injury that arises from providing or failing to provide professional services as a lawyer without affecting personal and advertising injury coverage for other activities lawyers perform that fall outside professional services. The 07 13 edition also adds wording to make it consistent with the professional liability exclusion wording change in BP 00 03.

BP 14 16-Snow Plow Products-Completed Operations Hazard Coverage

This endorsement adds products-completed operations coverage for loss or damage caused when an auto is used to remove snow or ice.

BP 14 17-Designated Location(s) General Aggregate Limit

This endorsement broadens coverage by replacing the general aggregate limit of insurance with an aggregate limit of insurance per location.

BP 14 18-Designated Construction Project(s) General Aggregate Limit

This endorsement broadens coverage by replacing the general aggregate limit of insurance with an aggregate limit of insurance per project.

BP 14 19-Exclusion-Damage to Work Performed by Subcontractors on Your Behalf

This exclusion replaces Section II-Liability B. Exclusions m. Damage to Your Work. It excludes property damage to the named insured's work that arises out of it or any part of it included in the products-completed operations hazard.

Note: This endorsement applies on a blanket basis. It excludes damage to the work by subcontractors that perform work on the named insured's behalf and is a reaction to construction defects lawsuits. The ISO CGL Coverage Form excludes damage an insured does to its own work but covers damage a subcontractor does to that work. Since this limited exception is becoming increasingly important, the loss of the exception significantly reduces coverage.

BP 14 20-Exclusion-Damage To Work Performed By Subcontractors On Your Behalf-Designated Sites or Operations

This exclusion replaces Section II-Liability B. Exclusions m. Damage to Your Work. It excludes property damage to the named insured's work that arises out of it or any part of it included in the products-completed operations hazard. However, it applies to only the sites or operations listed on the endorsement schedule. Similar to BP 14 19, it removes the exception for subcontractors that work on the named insured's behalf.

Note: This endorsement is less restrictive than BP 14 19-Exclusion-Damage to Work Performed by Subcontractors on Your Behalf because it applies to only the sites or operations listed.

BP 14 21-Exclusion-Designated Work

This endorsement excludes coverage for bodily injury or property damage included in the products-completed operations hazard that arises out of the named insured's work listed on the endorsement schedule.

BP 14 22-Exclusion-Products-Completed Operations Hazard

This endorsement excludes bodily injury and property damage included in the products-completed operations hazard.

BP 14 23-Exclusion-Designated Products

This endorsement excludes coverage for bodily injury or property damage included in the products-completed operations hazard that arises out of any of the named insured's products listed on the endorsement schedule.

BP 14 30-Discretionary Payroll Expense

This endorsement gives the named insured the option to change the maximum number of days of payroll expense covered during the period of restoration from 60 days to the number of days on the endorsement schedule. It applies to only the specific employees or job description indicated. It does not affect any other employees or job descriptions. The payroll expense does not have to be necessary for the named insured to resume operations.

BP 14 75-Increased Cost of Loss and Related Expenses for Green Upgrades

This endorsement covers the costs of loss and related expenses for green upgrades to buildings with respect to the locations, covered property, and number of days on the endorsement schedule.

BP 14 78-Exclusion of Loss Due to By-Products of Production or Processing Operations (Rental Properties)

A tenant's operations may produce vapor, gas, smoke, or other substances as a regular part of production. In that case, the property owner's coverage form excludes any damage those releases cause. This applies to meth-house situations, grease residue, and other substances. This applies to the buildings and locations on the endorsement schedule.

BP 14 79-Specified Business Personal Property Temporarily Away from Premises

This endorsement is not used with salespersons or their samples. The property temporarily off premises must be described and a limit for it entered on the endorsement schedule. Temporarily is not defined. The named insured or an employee authorized to have the property must have care, custody, or control of it. Property is covered at exhibitions, trade shows, in transit, and other locations within the coverage territory but not while in the air or on the water.

BP 14 80-Higher Limits

This endorsement can be used to increase the limits of insurance for certain coverages instead of using the declarations to do so.

BP 14 81-Limitations on Coverage for Roof Surfacing

This endorsement restricts coverage. It contains two potential limitations. The first changes valuation on roofs from replacement cost to actual cash value. The second excludes loss or damage by wind or hail to the roof that is considered only superficial or cosmetic. The premises must be scheduled along with the limitation selection(s).

BP 14 82-Increase in Rebuilding Expenses following Disaster (Additional Expense Coverage on Annual Aggregate Basis)

The cost to repair a house damaged during a disaster is often much more than if the same damage occurred in normal time. This endorsement permits an insured to schedule a higher limit for such expenses in anticipation of such a need.

BP 14 83-Employee Dishonesty-Named Employee(s)

The actions of any employee listed on this schedule are covered under the employee dishonesty optional coverage even if they had committed theft or other dishonest acts before this policy's inception date.

BP 14 84-Windstorm or Hail Exclusion

This endorsement excludes direct or indirect loss or damage by windstorm or hail.

BP 14 86-Communicable Disease Exclusion

This endorsement excludes bodily injury, property damage, or personal and advertising injury that arises out of alleged or actual transmission of communicable diseases. It applies to both alleged and actual transmission.

BP 14 87-Additional Insured-Owners, Lessees, or Contractors-with Additional Insured Requirement for Other Parties in Construction Contract

This endorsement is identical to BP 04 51 except that it adds an additional group as automatic additional insureds. This group is any party the named insured is required to make additional insureds based on a construction contract with another party. The named insured is not required to have a contract with the others. However, when the construction contract expires, all automatic additional insureds that were part of that contract are no longer additional insureds.

BP 14 88-Primary and Noncontributory-Other Insurance Condition

This endorsement states that coverage for additional insureds is on a primary and non-contributory basis but only when required by a contract. The non-contributory agreement applies to only policies where the additional insured is a named insured.

BP 14 89-Liquor Liability Coverage-Bring Your Own Alcohol Establishments

This endorsement is used in place of the BP 04 89-Liquor Liability Coverage to provide liability coverage that arises from an insured selling, serving, or furnishing alcoholic beverages to any person who brings alcoholic beverages on the insured's premises.

BP 14 91-Amendment of Personal and Advertising Injury Definition

This endorsement deletes from the definition of Personal and Advertising Injury offenses that involve any oral or written publication of material that violates a person's right to privacy.

What Are BP 15 - Limited Data Liability Coverage Endorsements?

The BP 15 - Limited Data Liability Coverage Endorsements are as follows:

BP 15 04–Exclusion-Access or Disclosure of Confidential or Personal Information & Data-Related Liability-With Limited Bodily Injury Exception

This mandatory endorsement replaces the B.1.q. Electronic Data policy exclusion. It adds wording to the exclusion so that liability, except personal and advertising injury, involving business data breach is excluded. Electronic data is defined in the endorsement. Bodily injury is an exception to the exclusion except for the data breach.

BP 15 05–Exclusion-Access or Disclosure of Confidential or Personal Information & Data-Related Liability-Limited Bodily Injury Exception Not Included

This optional form is more restrictive than BP 15 04 because it eliminates the bodily injury exception. It can be used in place of BP 15 04.

BP 15 06–Exclusion-Access or Disclosure of Confidential or Personal Information (Personal & Advertising Injury Only)

This optional form can be used with BP 15 04 because it eliminates coverage for personal and advertising injury due to data breach.

BP 15 07–Information Security Protection Endorsement

This form amends the ISO BOP to provide coverage for both first party expenses as well as third party liability for damage and injury caused to others as a result of certain data breaches.

BP 15 08–Payment Card Industry (PCI)-Provide Coverage for Defense Expenses & Fines or Penalties

This form can be attached only when BP 15 07 is on the policy. It expands coverage to include defense costs, fines and penalties that an insured company may face due to credit card damage claims, alleging noncompliance with credit card agreements.

BP 15 10–Provide Coverage for Dishonest, Malicious or Fraudulent Acts Committed by Employees

This form can be attached only when BP 15 07 is on the policy because it expands the exception within exclusion r. on the BP 15 07 to apply to all Insuring Agreements.

BP 15 11–Exclusion – Unmanned Aircraft

his endorsement amends the Aircraft, Auto or Watercraft exclusion to specifically exclude unmanned aircraft for bodily injury and property damage. It also introduces a personal and advertising exclusion for unmanned aircraft ownership, maintenance, entrustment or use.

The term unmanned aircraft is defined.

The schedule in the endorsement is available to limit to the exclusion to apply to only bodily injury and property damage or to only personal and advertising injury.

BP 15 12–Limited Coverage for Designated Unmanned Aircraft

This endorsement is identical to BP 15 11 except that any scheduled unmanned aircraft and the project for which it is used are excepted from the exclusion. The exception is subject to the Unmanned Aircraft Liability Aggregate Limit scheduled on the endorsement. This limit is not additional limits but instead is subject to the policy occurrence and the general aggregate limits.

BP 15 30–Cannabis Property Exclusion

This endorsement could be considered to be maintaining the status quo and clarifying the intended position of the insurance industry.

BP 15 31–Cannabis Property Exclusion with Hemp Exception

This endorsement is identical to BP 15 30 except for the addition of paragraphs under Item A. and B. which remove certain types of cannabis products from the exclusion.

BP 15 32–Cannabis Liability Exclusion

There is no specific exclusion that is applied to cannabis-related operations in the BP 00 03. However, coverage has been avoided by carriers declining to write such operations. If a loss should occur and investigation reveals such an operation is taking place, coverage is denied because of the Concealment, Misrepresentation or Fraud condition in the policy that voids policy because of fraud, concealing or or misrepresentations.

However, because cannabis use is spreading, ISO has developed an exclusion that is specific to it.

Attaching this endorsement could be considered a clarification of the status quo. However, because the endorsement eliminates some of the fuzziness regarding cannabis coverage the addition of this exclusion should be considered a reduction in coverage. Coverage fuzziness leads to ambiguities which normally result in decisions for the policyholders and against the insurance company.

This endorsement applies to both BP 00 03–Businessowners Coverage Form and BP 05 96– Electronic Data Liability – Broad Coverage Endorsement.

BP 15 33–Cannabis Liability Exclusion with Hemp Exception

BP 15 34–Cannabis Liability Exclusion with Hemp and Lessors Risk Exemptions

This endorsement is identical to BP 15 33 except for one item added to the Paragraph B.

Item 3. is added stating that bodily injury, property damage or personal and advertising injury that arise from the named insured owning, maintaining or using a premises that is is leased to others is not subject to Exclusion A. Note: This could be a very important exception for any named insured that owns property because there are NO limitations. Owners of multiple properties are not always aware of all of the activities, legal and illegal, taking place at its premises. Because of the lack of limitations in this exception the landlord will have much more protection than in the unendorsed BP.

What Are BP 17 - Condominium Coverage Endorsements?

The BP 17 - Condominium Coverage Endorsements are as follows:

BP 17 01-Condominium Association Coverage

This endorsement amends coverage to apply to condominium associations. If a unit owner has other insurance that covers the same property that this insurance covers, it makes this insurance primary and non-contributory with the unit owner's insurance. Coverage applies to listed real and personal property. The 07 13 edition is revised to be consistent with changes made to Business Personal Property in the 07 13 edition of BP 00 03-Businessowners Coverage Form.

BP 17 02-Condominium Commercial Unit-Owners Coverage

This endorsement amends personal property coverage to apply to the special needs of condominium commercial unit owners. The 07 13 edition is revised to be consistent with changes made to Business Personal Property in the 07 13 edition of BP 00 03-Businessowners Coverage Form. It also adds to Business Personal Property leased personal property that the named insured is contractually required to insure.

BP 17 03-Condominium Commercial Unit-Owners Optional Coverages

This endorsement provides loss assessment and miscellaneous real property coverages for condominium commercial unit owners listed on the endorsement schedule.

BP 17 24-Condominiums, Co-Ops, Associations-Directors and Officers Liability Endorsement

This endorsement adds Directors and Officers (D & O) Liability Coverage for condominiums, co-ops, and community associations eligible for coverage under the ISO Businessowners Program. It provides Management Liability, Association Reimbursement, and Association Liability coverages.

What Are Businessowners Policy Insurance Endorsements? - The Bottom Line

What are businessowners policy insurance endorsements? An endorsement alters the BOP and becomes part of your commercial insurance agreement, and it remains in force until the contract term expires.

The only exception to the above rule is if the businessowners endorsement has a specific or limited term to which the endorsement is valid. It may renew under the same terms and conditions of the rest of your policy.

Additional Commercial Insurance Endorsements Information

Learn about small business commercial endorsements that add, remove, or change your policy's coverage by altering the standardized coverage form.


Commercial Insurance Endorsements

So commercial insurance endorsements allow you to customize your policy to better fit your business insurance needs without having to buy a new policy.

So business insurance endorsements can either modify the basic policy by removing coverages that you don’t need, or remove one or more exclusions, adding those coverages back into the policy.

There are many types of commercial insurance endorsements - and while some favor the insurer (by excluding coverage) and some benefit the insured (by adding coverage), below is a list of some of the most common uses for business insurance endorsements:


  • Additional Insured: This is one of the most common endorsements that adds someone other than you to your insurance policy. It is typically required by some sort of contract. Common additional insureds are landlords, general contractors, vendors or customers.
  • Administrative Changes: Newly issued policies can include mistypes, misspellings, or missing words altogether. To correct these errors, the insurer would add an endorsement, rather then having to cancel and issue a new policy. If a policyholder changes their name, an endorsement would reflect that too.
  • Changing Or Adding Addresses: This endorsement covers any change to the insured's property like moving your office to a new location, or expanding to a another location.
  • Deductible Changes: This endorsement manages who can change your deductible as well as when and how much it can be changed.
  • Increased Limits: Occasionally companies need to add endorsements to increase the limits of insurance. For example, you'd use an endorsement to extend workers' compensation benefits not covered by state law. Or, to get a contract you need higher limits on your general liability policy.

Making a policy change usually affects your insurance premium. Anytime coverage is altered there is likely a cost associated with how the policy premium is calculated. Adding coverage usually makes the premium increase, while excluding coverage can reduce the premium you pay.


Types Of Small Business Insurance - Requirements & Regulations

Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.

Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.

Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.

Small Business Information

Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.

Small Business Insurance Information

In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.

The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.

According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.

Types Of Small Business Insurance

Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:

  • What type of business am I running?
  • What are common risks associated with this industry?
  • Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
  • Does my state require me to carry this type of insurance?
  • Does my lender or do any of my investors require me to carry this type of policy?

A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:

Business Insurance Policy Type What Is Covered?
General Liability InsuranceWhat is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.
Workers Compensation InsuranceWhat is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.
Product Liability InsuranceWhat is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.
Commercial Property InsuranceWhat is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.
Business Owners Policy (BOP)What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.
Commercial Auto InsuranceWhat is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.
Commercial Umbrella PoliciesWhat is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.
Liquor Liability InsuranceWhat is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.
Professional Liability (Errors & Omissions)What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.
Surety BondWhat is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).


Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.

Business Insurance Required by Law
Small Business Commercial Insurance

If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.

Your insurance agent can help you check applicable state laws so you can bring your business into compliance.

Other Types Of Small Business Insurance

There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:

  • Business Interruption Insurance
  • Commercial Flood Insurance
  • Contractor's Insurance
  • Cyber Liability
  • Data Breach
  • Directors and Officers
  • Employment Practices Liability
  • Environmental or Pollution Liability
  • Management Liability
  • Sexual Misconduct Liability

Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.

Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.

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