ISO BUSINESSOWNERS PROGRAM EXPOSURE ANALYSIS CHECKLIST

(September 2019)

INTRODUCTION

This checklist is designed to assist in beginning the Insurance Services Office (ISO) Businessowners Coverage Form analysis. This is only a starting point and additional risk specific questions may arise as the exposures are developed. This analysis should be combined with exposure analysis checklists for other coverages to develop a complete picture of the insured’s operations.

This checklist is designed to supplement the ACORD application.

A list of endorsements available to use with this program may be helpful as you discuss exposures with your client.

ISO Businessowners Program Endorsements Checklist

ISO Businessowners Program Available Endorsements And Their Uses

GENERAL CLIENT INFORMATION

Legal business name(s):

______________________________________________________________________________________

Mailing address:

______________________________________________________________________________________

Type of entity:

___ Individual	___ Corporation	___ Sub S. Corporation
___ Partnership	___ Joint Venture	___ Other (specify)
___ Not-For-Profit	___ Limited Liability Company

SIC Code(s): ___________________________________________________________________________

NAICS Code(s): ________________________________________________________________________

Federal Identification Number: _____________________________________________________________

When did the applicant start business operations? _____________________________________________

When did the present management assume control? ___________________________________________

How many years experience does the owner have in this type of business? __________________________

How many years experience does the manager have in this type of business? ________________________

Has the applicant ever been involved in a bankruptcy procedure? ___ Yes ___ No

If yes, explain including the type of bankruptcy, the filing date, and the resolution.______________________________________________________________________________________

______________________________________________________________________________________

Names of subsidiary companies or joint ventures that are not part of this application:

______________________________________________________________________________________

Important People	Name Of Applicant Contact	Telephone Number
Owner/Principal
Other Decision Makers
Plant/Grounds
Financial
Legal
Claims

The applicant’s primary operations are:

______________________________________________________________________________________

The applicant’s secondary and incidental operations are:

______________________________________________________________________________________

The applicant used to be involved in the following operations, but they have been discontinued:

_______________________________________________________________________________________

The hours of operations are: ________________________________________________________________

How many days per week is the applicant open? ___Is this a seasonal operation? ___ Yes ___ No

If yes, what is the season? From _____________ to _____________

Does the applicant have a safety program? ___ Yes ___ No

If yes, answer the following:

Name of safety director: ___________________________________________________________

Safety director phone number: __________________________________________________

Safety director email address: ____________________________________________________

Attach a copy of the safety program.

Does the applicant have a disaster plan? ___ Yes ___ No

If yes, answer the following:

Name of disaster coordinator: ______________________________________________________

Disaster coordinator phone number: ________________________________________________

Disaster coordinator email address: __________________________________________________

Attach a copy of the disaster plan.

BUILDING

Premises # _______ Building # _______

Location address:

_______________________________________________________________________________________

Does the applicant own the building? ___ Yes ___ No

If no, answer the following:

Who owns the building?

________________________________________________________________________________

_______________________________________________________________________________

Is the applicant contractually obligated to insure the building? ___ Yes ___ No

If yes, attach a copy of the contract.

If the building sustains a major loss, would the applicant replace it with the same type of structure? ___ Yes ___ No

If no, what would the applicant do?

_______________________________________________________________________________________

If the building sustains a major loss, what new building codes would be imposed on the applicant in order to rebuild?

_______________________________________________________________________________________

Describe any barriers that would prevent the fire department from responding to a fire at the applicant’s building in a timely manner. These could include locked gates, railroad crossings, and congested or narrow roads.

_______________________________________________________________________________________

Describe any barriers or obstacles that would prevent efficiently evacuating the building.

_______________________________________________________________________________________

How many fire extinguishers and smoke alarms are on premises?

____ Fire extinguishers ____ Smoke alarms

When was the building built? _____

When were the following systems last updated?

______Heating ______ Electrical ______ Roof ______ Plumbing

Have any additions been made to the building? ___ Yes ___ No

If yes, describe the addition and the date it was completed.

_______________________________________________________________________________________

BUSINESS PERSONAL PROPERTY

Premises # _______ Building # _______

Location address:

_______________________________________________________________________________________

Describe the business personal property.

_______________________________________________________________________________________

Do the applicant’s business personal property values fluctuate? ___ Yes ___ No

If yes, is the fluctuation ___Monthly ____Seasonal (from_________ to _________)

Is the business personal property:

Highly flammable: ___ Yes ___ No

Susceptible to severe damage from: ___Smoke ___ Heat ___ Water ___ Temperature

Do any other occupancies in this building present a significant exposure hazard to the applicant? Examples are explosion, fire or chemical hazards but are not limited to just them. ___ Yes ___ No

If yes, describe. _______________________________________________________________________________________

_______________________________________________________________________________________

Would the applicant’s business personal property be damaged if the off premises supplied heat, light or power failed? ___ Yes ___ No

If yes, answer the following:

Describe what would be damaged and how quickly.

_________________________________________________________________________________

How is the heat, light or power transmitted to the applicant?

_________________________________________________________________________________

Will alarms sound or other notification be made if power fails or shuts off? ___ Yes ___ No

Are backup generators available? ___ Yes ___ No

Are detailed records kept of all of the applicant’s inventory, machinery, fixtures, or equipment, including their purchase date and price? ___ Yes ___ No

Does the applicant label and assign inventory numbers to all items? ___ Yes ___ No

BURGLAR ALARMS

Describe any burglary exposures beyond what is usual to the applicant’s type of business.

_______________________________________________________________________________________

Describe any special features of the applicant’s burglar alarm or safe or vault alarm systems not noted elsewhere.

_______________________________________________________________________________________

IMPROVEMENTS AND BETTERMENTS

Is the applicant a tenant? ___ Yes ___ No

If yes, answer the following:

Describe all improvements or betterments that have been added by or for the applicant but that will remain with the building when the applicant leaves. ________________________________________________________________________________

________________________________________________________________________________

What is the term of the applicant’s lease? _______________________________________________

What is the applicant’s lease renewal option term? ________________________________________

BUSINESS INCOME

Premises # _______ Building # _______

Location address:

_______________________________________________________________________________________

What expenses of the applicant would continue during any business suspension?

$______________ preceding 12 months $______________ current year

How many days does the applicant need to resume operations? _________________________

Will the applicant’s net income equal pre-loss levels as soon as the operations resume? ___ Yes ___ No

If no, how many days will the applicant need before the income returns to its pre-loss level?

___ 30	___ 60	___ 90	___ 120	___ 150	___ 180
___ 210	___ 240	___ 270	___ 310	___ 340	___ 370

Describe a piece of equipment or type of operation that might force the applicant to suspend operations until it was replaced, repaired, or resumed.

_______________________________________________________________________________________

EXTRA EXPENSE

Premises # _______ Building # _______

Location address:

_______________________________________________________________________________________

Would it be necessary for the applicant to resume operations immediately following a direct damage loss regardless of the cost? ___ Yes ___ No

Develop an estimate of the extra expense exposure using the following formula:

$ _____________ Estimated daily expenses in excess of normal (rent, employees, utilities, etc.)

X _____________ Estimated number of days the extra expenses may have to be incurred

= $_____________ Total exposure for daily expenses

+$______________ Anticipated onetime expenses (equipment, generators, transport costs, advertising, etc.)

= $ _____________ Total extra expense exposure

Attach a copy of the current emergency plan to guarantee that services will be continued.

COMMERCIAL GENERAL LIABILITY

ON-PREMISES EXPOSURES

Describe the applicant’s on-premises operations.

_______________________________________________________________________________________

Describe how the applicant disposes of waste.

_______________________________________________________________________________________

Does the facility comply with the National Fire Protection Association's (NFPA) Life Safety Code concerning the number, size, and arrangement of exits? ___ Yes ___ No

If no, explain.

_______________________________________________________________________________________

Are employees instructed in proper evacuation procedures? ___ Yes ___ No

Does management conduct regular fire drills? ___ Yes ___ No

Are large panes of glass, both inside and outside, properly marked or etched to prevent accidental contact?
___ Yes ___ No

Does the applicant own, jointly own, hire or lease any watercraft or aircraft? ___ Yes ___ No

Does the applicant provide any type of child or adult care on premises? ___ Yes ___ No

Is food handled on premises? ___ Yes ___ No

If yes, answer the following:

Are food handlers required to use proper hygiene? ___ Yes ___ No

Has the Board of Health cited the establishment? ___ Yes ___ No

If yes, explain:

_________________________________________________________________________________

Does the applicant store cleaning materials in a separate area at a distance from the food storage area?
___ Yes ___ No

PARKING LOTS AND SIDEWALKS EXPOSURES

Does the applicant own or rent parking facilities that are available for clients, customers, employees, and/or the general public? ___ Yes ___ No

If yes, answer the following:

Does the applicant charge a fee? ___ Yes ___ No

If yes, consider completing the garagekeepers questionnaire.

Does the applicant hire a towing company to remove vehicles parked on the premises without permission?
___ Yes ___ No

If yes, attach a copy of the contractual agreement, if any, with the towing company.

Does the applicant require a certificate of insurance from any towing company that provides services on the premises? ___ Yes ___ No

Describe the parking facility(ies).

Length	Width	Number of stories	Number of spaces	Attendant (Y/N)	Proximity to applicant premises
______	______	________	___________	_______	_______________________________
______	______	________	___________	_______	_______________________________
______	______	________	___________	_______	_______________________________

Has the applicant planned to remove snow and ice from the parking facility(ies) and walkways?___ Yes ___ No

OFF-PREMISES EXPOSURES

Do applicant employees interact on a regular basis with customers off premises? ___ Yes ___ No

If yes, answer the following:

Describe the clientele by percentage.

___% Residential ___% Commercial ___% Institutional ___% Public

Do employees travel alone? ___ Yes ___ No

Are employees subject to criminal background checks? ___ Yes ___ No

Describe the procedure to train, monitor, and supervise all such off-premises employees.

_________________________________________________________________________________

CONTRACTUAL EXPOSURES

Does the applicant lease the premises? ___ Yes ___ No

If yes, answer the following:

Does the lease include a written waiver-of-rights provision for damage to property? ___ Yes ___ No

Does the lease include a written waiver of subrogation? ___ Yes ___ No

Does the lease include a written hold harmless agreement? ___ Yes ___ No

Does the lease clearly delineate maintenance responsibilities? ___ Yes ___ No

Indicate under which of the following agreements the applicant has assumed liability of others:

_____ Lease agreements for real estate	_____ Lease agreements for signs, refrigeration, etc.
_____ Sidetrack agreements	_____ Contracts for electric power, steam, etc.
_____ Easement agreements	_____ Elevator maintenance agreements
_____ Other contracts such as construction, installation, compliance certificates, etc.

Attach a copy of each contract and/or agreement indicated above.

Is the applicant’s insurance policy required to be primary under any of the above contracts or agreements?
___ Yes ___ No

SUBCONTRACTORS EXPOSURES

Does the applicant regularly use subcontractors? ___ Yes ___ No

If yes, answer the following:

Describe the type of work the subcontractors perform.

_________________________________________________________________________________

Describe procedures used to monitor timely receipt of certificates of insurance from subcontractors.

_________________________________________________________________________________

Does the applicant have a written contract with each subcontractor? ___ Yes ___ No

If yes, attach a copy of each contract.

If no, describe the terms and agreements between the applicant and the subcontractor.

_________________________________________________________________________________

What are the subcontractors' required insurance limits? $___________

PERSONAL AND ADVERTISING INJURY EXPOSURES

Does the applicant advertise its products, goods, or services? ___ Yes ___ No

If yes, what media does the applicant use and what is that medium’s percentage of the overall advertising budget?

___% Television	___% Direct mail	___% Radio
___% Signs	___% Newspaper	___% Yellow Pages
___% Magazine	___% Internet	___% Other

Describe other.

____________________________________________________________________________________

Does the applicant have a web page? ___ Yes ___ No

Does the applicant use an advertising firm and/or outside web designer? ___ Yes ___ No

PRODUCTS EXPOSURES

Describe all of the applicant’s products or services.

____________________________________________________________________________________

If the product is a component part, describe the items of which it might become a part.

____________________________________________________________________________________

If the product or service is defective or used improperly, describe the possible damage that could occur.

____________________________________________________________________________________

LIQUOR EXPOSURES

Does the applicant ever serve, sell, or furnish alcoholic beverages to employees, customers,
or the general public? ___ Yes ___ No

If yes, is the applicant in the business of selling, distributing, or serving liquor? ___ Yes ___ No

If no, what precautions does the applicant take to prevent guests from driving when they are intoxicated?

____________________________________________________________________________________

OTHER PROFESSIONAL SERVICES EXPOSURES

Is there any exposure for professional services performed by the applicant’s own personnel or through the use of subcontractors (i.e., beauty/barber shops, accounting, notary public, druggists, data processing, etc.)?
___ Yes ___ No