Lex owns a small fast food restaurant. It has seating for 40 people and is open seven days a week. Most of the loss exposures for the restaurant are…

A Businessowners Policy (BOP) packages property and liability coverage but contains specific exclusions for certain exposures that require separate policies. Workers compensation is a primary example. State laws mandate that employers provide workers compensation benefits for employees who are injured on the job. This coverage is always provided by a separate Workers Compensation and Employers Liability policy and is explicitly excluded from the BOP. Other common exclusions requiring separate policies include auto liability and professional liability.

A. Damage to the building from a fire is a fundamental property loss covered by the BOP's property section.

C. Liability for a customer who slips and falls is a premises liability exposure covered under the Commercial General Liability section of the BOP.

D. Loss of income due to a covered cause of loss like a fire is covered under the Business Income and Extra Expense coverage, which is standard in a BOP.

1. The Institutes. (2022). CPCU 500: Managing Evolving Risks (1st ed.). Chapter 6, Other Commercial Property Coverages, Section: "Businessowners Policy (BOP)," subsection on typical coverages and exclusions.

2. The Institutes. (2022). CPCU 500: Managing Evolving Risks (1st ed.). Chapter 5, Commercial General Liability Insurance, Section: "Exclusions," subsection on Workers Compensation and Employers Liability exclusions.

3. ISO Form BP 00 03 01 10, Businessowners Coverage Form, Section II - Liability, Exclusions, e. "Employer's Liability."