BROCHURE: UNDERSTANDING THE ISO BUSINESSOWNERS COVERAGE FORM

(September 2019)

You need coverage for all of your property and casualty exposures, not just some. Wouldn't it be great if you could get most or all of them in just one coverage form? Maybe you can! If you qualify, the Insurance Services Office (ISO) Businessowners Coverage Form may be exactly what you're looking for. This single package covers your buildings and business personal property, as well as liability imposed on you because of your premises, operations and products. In addition, it has numerous coverage extensions and optional coverages available.

Consult the coverage form for definitions and limitations. The terms of this brochure do not represent contract terms. The coverage form is subject to company underwriting practices.

COVERED BUILDING PROPERTY

Buildings can be more than just a single building. The structure listed and described that has a limit of insurance on the declarations is covered, along with the following:

• Completed additions
• Indoor and outdoor fixtures
• Permanently installed machinery and equipment
• Personal property you own used to service or maintain the building or premises
• Personal property you own as a landlord in furnished apartments
• Additions under construction if not covered elsewhere

COVERED BUSINESS PERSONAL PROPERTY

Business personal property is more than just the contents of a building. The following business personal property is covered when a limit of insurance appears on the declarations and when it is in the described building and within 100 feet of the premises or building while in the open or in or on a vehicle:

• Personal property you own and use in the business
• Property of others in your care, custody, or control
• The use interest in any improvements and betterments you made or acquired if you are a tenant
• Leased personal property you are contractually responsible to insure
• Exterior building glass you must cover if you are a tenant

PROPERTY NOT COVERED

The following property is excluded. In some cases, it can be covered under other coverage forms or policies.

• Aircraft and any motor vehicle subject to motor vehicle registration laws
• Money and securities
• Contraband, illegal property, or legal property in the course of illegal transportation or trade
• Land, water, growing crops, or lawns, except lawns that are part of vegetated roofs
• Certain outdoor property, such as fences, signs not attached to buildings, towers, antennas, and plantings
• Watercraft and its equipment while afloat
• Accounts, bills, currency, food stamps, evidences of debt, accounts receivable, and valuable papers and records
• Computers permanently installed in aircraft, watercraft, or vehicles subject to motor vehicle registration laws
• Electronic data
• Animals

COVERED CAUSES OF LOSS

Coverage applies to direct physical loss, unless the loss is subject to a limitation or is excluded. Exclusions and limitations can significantly affect the coverage provided and should be reviewed carefully.

ADDITIONAL COVERAGES

These additional coverages apply for specific limits of insurance and are subject to certain exclusions, exceptions, conditions, and restrictions.

• Debris removal
• Preservation of property
• Fire department service charge
• Collapse
• Water, other liquids, powder, and molten material damage
• Business income for 12 months on an actual loss sustained basis
• Extended business income for 30 days after normal operations resume
• Extra expense for 12 months on an actual loss sustained basis
• Pollutant cleanup and removal
• Civil authority
• Business income and extra expense due to acts of civil authorities
• Money orders and counterfeit money
• Forgery or alteration
• Increased cost of construction
• Business income from dependent properties
• Glass expenses
• Fire extinguisher systems recharge
• Electronic data
• Interruption of computer operations
• Limited coverage for fungi, wet rot, or dry rot

COVERAGE EXTENSIONS

These coverage extensions are for additional amounts of insurance.

• Newly acquired or constructed buildings
• Newly acquired business personal property
• Personal property off premises
• Outdoor property
• Personal effects
• Valuable papers and records
• Accounts receivable
• Business personal property temporarily in portable storage units

OPTIONAL COVERAGES

• Outdoor signs
• Money and securities
• Employee dishonesty
• Equipment breakdown protection for boilers and mechanical/electrical equipment

PROPERTY LOSS CONDITIONS

Loss Conditions explain the obligations you owe the insurance company and the ones it owes you when a covered loss occurs.

• You may not abandon damaged property to the insurance company without its consent
• Appraisal explains how disputed claim amounts are resolved
• Your duties if loss or damage occurs
• Legal action you can take against the insurance company
• How loss payments are handled
• How recovered property is handled
• Resuming operations
• How vacancy affects you

BUSINESS LIABILITY COVERAGE

• The Businessowners Coverage Form insures bodily injury and property damage liability and the legal obligations that arise from an occurrence. It also covers lawsuits and their associated costs. The limits of insurance selected should be high enough to handle serious claims. This coverage is subject to a number of exclusions.
• It also covers personal and advertising injury liability and related legal obligations arising from an offense as well as lawsuits and their related costs. The limits of insurance selected should be high enough to handle serious injuries and the injured party's loss of earnings. This coverage is also subject to a number of exclusions.
• Medical expenses coverage applies to medical expenses of individuals injured on your premises or due to your operations, without regard to fault. This coverage is subject to a number of separate exclusions.

EXCLUSIONS

Every insurance coverage form or policy has exclusions and limitations. This is because only specific types of businesses need the coverage or the exposure to loss is such that it is not considered insurable. They can significantly affect coverage and should be reviewed carefully.

ENDORSEMENTS

The Businessowners Coverage Form provides very broad coverage. Many endorsements are available to use with it that broaden, limit, or exclude coverage.

Note to subscribers:

Related Article: ISO Businessowners Program Endorsements Checklist

REPRINT PERMISSION

PF&M subscribers in any manual or electronic form are permitted to reprint any portion of this brochure for their commercial insurance customers. Other uses require permission by The Rough Notes Company, Inc.