(August 2019)
This list identifies endorsements available to modify the Mutual Service
Office (MSO) Businessowners Policies. It is arranged by form number and title
and briefly describes and explains how each endorsement is used. It does not
include any terrorism forms or endorsements or state specific endorsements,
changes, or amendments.
Note: Several endorsements are being filed to
accompany the 01 19 edition change. At this writing, none of those endorsements
are available for review. All changes to the existing endorsements are meant to
align the endorsement with the 01 19 edition of the coverage form. No other
changes were anticipated.
The ten-digit numbering sequence of MSO forms and endorsements has a very specific meaning:
BU 0142–Green Update Supplemental Coverage
This endorsement is available only if the policy is written on a replacement cost basis. It broadens the valuation condition to permit upgrading non-green property to green property based on standards that defined green authorities establish. A factor in the endorsement is applied to the limit of insurance to determine the maximum amount of green upgrading available.
BU 0179–Premises Theft and Robbery Outside the Premises Crime Coverage
(Form H)
This endorsement applies to property other than money and securities. Theft coverage applies while the property is on premises. Robbery coverage applies when the property is off premises. A limit must be entered in the declarations.
Note: There is no place for this coverage on the declarations so a manuscript endorsement may be needed.
BU 0320 must be attached when this endorsement is used.
BU 0184–Fungi/Mold Limited Coverage
This endorsement covers the cost to remove fungi, pays for loss that fungi causes, and pays the costs to test for fungi. The limit must be entered in the space provided on the endorsement schedule.
BU 0185–Building Code/Law Coverage–Blanket Insurance
This endorsement restricts coverage. The only values used in developing the building code/law updates are those at the premises where the loss occurred. This is needed only when coverage is written on a blanket basis. If this endorsement is not attached, the blanket amount on the Declarations would be used to develop the amount available for building code/law updates even though only one premises sustained the loss.
BU 0186–Premises Burglary Crime Coverage (Form E)
This endorsement applies to property other than money and securities. It covers burglary and robbery of a watchperson while the property is on the premises. BU 0320 must be attached when this endorsement is used.
Note: There is no place for this coverage on the declarations so a manuscript endorsement may be needed.
BU 0231–Business Income–Off Premises Loss of Utility Service Coverage
Loss of income coverage is provided if it the result of any of the described utility services sustaining a covered direct damage loss and causing the premises scheduled on the endorsement to lose services. There is a 12-hour waiting period. There is no separate limit of insurance.
BU 0236–Loss Payee–Lenders Loss Payable
The loss payees listed on the endorsement schedule are given important policy rights that apply even when the named insured does not meet its policy obligations. However, the insurance company is not required to send the loss payee notices of cancellation or non-renewal.
BU 0242–Protective Safeguards–Hood and Duct Protection
This restrictive endorsement suspends fire coverage at the locations/buildings scheduled on the endorsement when the hood and duct protection is not in working order.
BU 0250–Loss Payee
This endorsement lists loss payees and describes the property in which they have an interest. It states that any loss payment that involves such property must include the loss payee.
BU 0251–Windstorm and Related Damage Deductible
The deductible in the endorsement schedule replaces the deductible on the Declarations. The deductible applies to both the inside and the outside of the building and business personal property.
BU 0260–Functional Replacement Condition–Coverage A
Loss payment is based on the cost to repair or rebuild a building for its functional purpose following a loss. This endorsement can reduce the limit of insurance needed for such buildings and therefore reduce the premium cost.
Related Article: Functional Property Valuations. This article is based on Insurance Services Office (ISO) forms. However, the concept is the same.
BU 0261–Functional Replacement Condition–Coverage B
Loss payment is based on the cost to repair or rebuild contents for its functional purpose following a loss. This endorsement can reduce the limit of insurance needed for such contents and therefore reduce the premium cost.
Related Article: Functional Property Valuations. This article is based on Insurance Services Office (ISO) forms. However, the concept is the same.
BU 0263–Agreed Value Condition
Property listed on this endorsement is adjusted based on the scheduled agreed value instead of replacement cost or actual cash value.
BU 0265–Vacancy/Unoccupancy Extension
The property listed on this endorsement is not subject to the standard vacancy restrictions within the policy but only during the dates scheduled.
BU 0272–Forgery or Alterations Crime Coverage (Form B)
Coverage is provided for loss caused by a forgery of certain types of financial instruments. The limit is scheduled on the endorsement. BU 0320 must be attached when this endorsement is used.
BU 0281–Peak Season
The scheduled amount of insurance for business personal property at the listed location is added to the limit of insurance available but only for a loss that occurs during the scheduled time period.
Note: The amount of insurance is an additional amount and not a
replacement of the limit of insurance.
BU 0282–Employee Dishonesty
Coverage is provided for
loss caused by the dishonesty of an employee. The dishonesty can involve money,
securities and/or other property. The limit must be scheduled on the endorsement
and applies without location restriction. BU 0320 must be attached when this
endorsement is used.
BU 0283–Commercial Condominium Loss Assessment Coverage
Coverage is provided for loss assessments made against the named insured unit-owner but only if reason for the assessment is the result of a cause of loss that is covered under this policy. A limit must be scheduled but only $1,000 is available to pay toward an assessment that is due to the association’s deductible.
BU 0284–Commercial Condominium Improvements Coverage for Unit Owners
Improvements and betterments made to condominiums are considered business personal property and subject to business personal property valuation rather than to the improvements and betterments valuation.
BU 0285–Commercial Condominium Improvements and Association Property
Coverage for Unit Owners
This is the same as BU 0284 except that coverage is also extended to any items within the unit that are required by the association bylaws to be insured by the unit owner.
BU 0286–Condominium Coverage for Condominium Associations (Parts I and
II)
Coverage is enhanced to provide coverage needed by condominium associations. It covers Part I and Part II items. This should be mandatory for any condominium association.
BU 0290–Commercial Condominium Original Improvements Coverage for Unit
Owners
Improvements that were part of the unit when purchased are considered business personal property and not improvements and betterments.
BU 0320–Crime Common Provisions
This endorsement contains additional common exclusions, conditions, and definitions. It is used with crime coverage endorsements BU 0179, BU 0186, BU 0272 and BU 0282
BU 0370–Computer Coverage
Direct damage and extra expense computer coverage can be added. Coverage can apply to all data processing equipment or only specific items. Many exclusions in the BOP are eliminated for these items but the computer virus and hacking exclusion continues to apply. The deductible is eliminated and not replaced by another. This is an extension of coverage B. Any item covered by this endorsement is not covered under the BOP Coverage A or C.
BU 0380–Earthquake Coverage
This endorsement adds earthquake and volcanic activity as additional covered causes of loss for all property coverages. Coverages A and B are subject to the deductible factor on the endorsement schedule. Coverage C is subject to a 7-day deductible if the damaged building is more than five stories tall. No earthquake coverage applies unless this endorsement was on this policy or its predecessor for at least seven days prior to the earthquake.
BU 0520–Property Not Covered
Any property listed on this endorsement is not covered. When this is used, the listing must be very precise and explicit in order to prevent confusion when a loss occurs.
BU 0521–Theft Exclusion
Business personal
property and money and securities are not covered for loss due to theft.
BU 0523–Building Code/Law Supplemental Coverage Exclusion
This endorsement deletes Part I B–Supplemental Coverages 3. Building Code/Law Coverage.
BU 0526–Business Personal Property Limitation
Paragraph B under Coverage B Personal Property is eliminated. This means that coverage for property of others in the named insured’s care, custody and control is eliminated.
BU 0527–On Premises Money and Securities–Reduced Limit when Premises
Closed for Business
The money and securities coverage limit on the declarations is reduced to the scheduled limit of liability on this endorsement. The revised limit applies only when the building is closed for business and no one other than a watchperson or janitorial staff is present.
BU 1001–Protective Safeguards–Automatic Sprinkler System
This restrictive endorsement suspends fire coverage at the listed locations/building whenever the automatic sprinkler system is not in working order. The suspension applies only at the specific location and does not apply to the entire policy.
BU 1002–Protective Safeguards–Automatic Fire Alarm
This restrictive
endorsement suspends fire coverage at the listed locations/building whenever
the automatic fire alarm is not in working order. The suspension applies only
at the specific location and does not apply to the entire policy.
BU 1003–Protective Safeguards–Premises Burglar Alarm
This restrictive
endorsement suspends burglary coverage at the listed locations/building
whenever the burglar alarm that protects the premises is not in working order.
The suspension applies only at the specific location and does not apply to the
entire policy.
BU 1009–Protective Safeguards
This restrictive endorsement suspends coverage at only the listed premises and for only for the cause of loss on the endorsement schedule when the listed protective safeguard is not in proper working condition.
Note: This single endorsement can be used in place of BU 1001, BU
1002, BU 1003, and BU 0242.
BU 0120–Vacant Land
This endorsement extends liability coverage to vacant scheduled on the endorsement.
BU 0140–Hired/Non-Owned Automobile Liability
This endorsement replaces Part II B–Supplemental Coverages 3. Employers Liability for Nonowned Automobile Coverage. It extends liability coverage to also apply to hired autos. It redefines insured, adds a definition of hired automobile and removes, adds and restates exclusions that apply.
BU 0143–Data Breach Exclusion (01 19 withdrawn)
This exclusion has been withdrawn because the wording was added to the policy.
BU 0178–Exterior Insulation and Finish System Exclusion
This restrictive endorsement excludes any injury or occurrence that arises from any aspect of exterior insulation and finish systems (EIFS).
BU 0180–Real Estate Agents/Brokers
This endorsement restricts liability coverage under this policy to only the real estate agents/brokers general office premises and the premises of listed property. The listed property premises are covered only if they are being sold or rented. They cannot be owned, managed or in the care, custody or control of the named insured.
BU 0181–Sexual Abuse or Sexual Misconduct Exclusion
This restrictive endorsement excludes all coverage for actual or threatened sexual abuse. It excludes coverage for the perpetrator as well as for all failures in administration or supervision that could have prevented the occurrence.
BU 0182–Sexual Abuse or Sexual Misconduct Limited Liability
This restrictive endorsement uses the wording in BU 0181 above but then provides limited coverage for the vicarious liability of an insured that could have intervened to prevent or stop such abuse. It is subject to the sublimits for each person and general aggregate/total limit on the endorsement schedule.
BU 0188–Aggregate/Total Limit–Per Project
This endorsement broadens coverage by applying the aggregate/total limit per project instead of over the entire policy. This means that if the named insured has 12 projects per year, it has 12 separate aggregates. Without the endorsement, there is only one aggregate over all projects.
BU 0189–Aggregate/Total Limit–Per Location
This endorsement broadens coverage by applying the aggregate/total limit per location instead of over the entire policy. This means that if the named insured has 12 location, it has 12 separate aggregates. Without the endorsement, there is only one aggregate over all locations.
BU 0191–Incidental Professional Liability
This endorsement provides unspecified professional coverage. Any professional liability that is connected to the named insured’s business is covered. It should be used only if a more specific professional liability endorsement is available.
BU 0192–Optical/Hearing Aid Services Professional Liability
This endorsement provides unspecified professional coverage. Any professional liability that is connected to the named insured’s business is covered. It should be used only if a more specific professional liability endorsement is available.
BU 0193–Barber or Beauty Shop Professional Liability
This endorsement extends liability coverage to apply to the professional liability of barber shops and beauty shops. It includes the liability for individuals (and their employees) who rent booth space from the named insured. There is no coverage for various types of spa treatments. Some examples are plastic surgery, massage, tanning, face lifts, and electrolysis.
BU 0194–Druggists’ Professional Liability
Professional coverage related to the named insured retail drug store is provided. This is broad coverage with very few exceptions.
BU 0195–Funeral Directors’ Professional Liability
This endorsement extends liability coverage to apply to the professional liability of funeral directors. It covers property damage as it relates to the deceased’s body, possessions, and other property in the funeral directors’ care, custody, and control. It also broadens the definition of bodily injury to include mental anguish even when not accompanied by bodily injury.
BU 0196–Veterinarians’ Coverage
This endorsement extends liability coverage to apply to the professional liability of veterinarians. It has a number of exceptions. It also provides a $1,000 limit for loss to any one household pet in the practice’s care, custody, and control.
BU 0197–Liquor Law Liability for Package Stores
Coverage is provided for the liquor law liability of a package liquor store.
BU 0205–Knowledge/Notice of an Injury or Occurrence
This endorsement changes the notice requirement in Part II D–Special Liability Conditions, Duties of Insureds. It states that an occurrence is not known until the named insured becomes aware of it. Insurance is not invalidated by any of the named insured’s employees or agents failing to notify the company of an occurrence they knew about.
BU 0300–Additional Insured–Volunteers
Volunteers are insureds while working on behalf of the named insured but only while acting within the scope of their duties.
BU 0301–Additional Insured–Charitable Institutions
This endorsement adds members of charitable institutions as insureds while they perform duties on the charitable institution’s behalf. Trustees and board members are also insured while working within the scope of their duties as such.
BU 0302–Additional Insured–Churches
This endorsement adds members of churches as insureds while they perform duties on the church’s behalf. Trustees, clergy and board members are also insureds while working within the scope of their duties as such. Volunteers are also insureds but with restrictions.
BU 0303–Additional Insured–Condominium Unit Owners
This endorsement adds individual unit-owners of the insured condominium association as insureds but only with respect to liability that arises from any aspect of parts of the premises that are not for only the unit-owners use.
BU 0304–Additional Insured–Townhouse Associations
This endorsement adds individual townhouse unit-owners of the insured townhouse association as insureds but only with respect to liability that arises from any aspect of parts of the premises that are not for only the unit-owner’s use.
BU 0309–Additional Insured–Permits
Political subdivisions listed on the endorsement are insureds but only as respects operations for which permits are issued by them.
BU 0315–Additional Insured–Concessionaires
Concessionaires listed on the endorsement are insureds but only for liability that results from them being concessionaires for the named insured.
BU 0316–Additional Insured–Vendors
Vendors listed on the endorsement are insureds but only for the liability arising from the products of the named insured described on the endorsement. This is a limited additional insured and does not extend to operations that vendor might perform with the product or changes the vendor might make to the product.
BU 0321–Additional Insured–Executors
This endorsement can be used when the named insured is an individual. The named insured’s executor becomes an insured while performing his or her duties as such.
BU 0327–Additional Insured–Appointed/Elected Officials
This additional insured endorsement also restricts coverage. Appointed and elected officials are insureds while performing duties. The restriction is that land vehicles designed for public road use are considered automobiles even if used exclusively to maintain the named insured’s street and roads.
BU 0328–Blanket Additional Insureds–Contractors/Lessees/Owners
Any contractor, lessee or owner is automatically an insured if there is a contractual obligation to add them as an insured. This applies to premises and operations but not to products or completed operations. This is excess coverage over any policy on which a person or entity considered on this endorsement as an additional insured is the named insured.
Note: This
restriction as excess coverage could contradict contractual additional insured requirements.
BU 0330–Volunteers and Donated Labor Medical Payments
When BU 0300 is attached to a policy, volunteers become insureds and because they are insured, they are not covered for Coverage F-Medical Payments. This endorsement should be used to change Coverage F so that volunteers continue to be covered.
BU 0335–Additional Insured – Contractors/Lessees/Owners – Primary and
Non-contributory Liability Basis (09/12 addition)
Any designated contractor, lessee or owner scheduled on the endorsement is an insured if there is a contractual obligation to add them as an insured. This applies to the named insured’s work for that entity but not any products or completed operations. The coverage provided is primary and non-contributory only if the contract requires that it be so. Otherwise this is excess coverage over any policy on which a person or entity considered on this endorsement as an additional insured is the named insured.
Note: Neither ISO nor AAIS use excess wording in their additional
insured endorsements.
BU 0336–Blanket Additional Insureds – Contractors/Lessees/Owners –
Primary and Non-contributory Liability Basis (09/12 addition)
Any contractor, lessee or owner is automatically an insured if there is a contractual obligation to add them as an insured. This applies to the named insured’s work for that entity but not any products or completed operations. The coverage provided is primary and non-contributory only if the contract requires that it be so. Otherwise this is excess coverage over any policy on which a person or entity considered on this endorsement as an additional insured is the named insured.
Note: This is
almost identical to BU 0328 above except that the coverage is primary if
required by contract.
BU 0337–Blanket Additional Insureds – Contractors/Lessees/Owners –
Primary and Non-contributory Liability Basis including Products/Completed
Operations
Any contractor, lessee or owner is automatically an insured if there is a contractual obligation to add them as an insured. This applies to the named insured’s work and completed operations for that entity. The operations coverage provided is primary and non-contributory only if the contract requires that it be so. Otherwise the operations coverage is excess coverage over any policy on which a person or entity considered on this endorsement as an additional insured is the named insured. The completed operations coverage is always excess.
Note: This is
almost identical to BU 0336 above except that the excess coverage for completed
operations is provided.
BU 0338–Additional Insureds – Contractors/Lessees/Owners – Primary and
Non-contributory Liability Basis including Products/Completed Operations (09/12
addition)
Any designated contractor, lessee or owner scheduled on the endorsement is an insured if there is a contractual obligation to add them as an insured. This applies to the named insured’s work and completed operations for that entity. The operations coverage provided is primary and non-contributory only if the contract requires that it be so. Otherwise the operations coverage is excess coverage over any policy on which a person or entity considered on this endorsement as an additional insured is the named insured. The completed operations coverage is always excess.
Note: This is
almost identical to BU 0335 above except that the excess coverage for completed
operations is provided.
BU 0339–Additional Insureds – Landlords – Primary and Non-contributory
Liability Basis (09/12 addition)
Any designated entity scheduled on the endorsement is an insured if there is a contractual obligation to add them as an insured. This applies to the scheduled premises while the named insured is leasing it. The coverage provided is primary and non-contributory only if the contract requires that it be so. Otherwise this is excess coverage over any policy on which a person or entity considered on this endorsement as an additional insured is the named insured.
BU 0350–Additional Insured–Supplemental Declarations
This supplemental declarations is used when there is not enough room to list all additional insureds on a particular additional insured endorsement schedule. The endorsement number or designation, designated additional insureds, and any related information or additional remarks are entered in the appropriate spaces on the endorsement schedule.
BU 0422–Liquor Liability
The liquor liability exclusion in the BOP is eliminated and
coverage is provided when alcohol is sold, distributed, furnished, served or
given away from a described premises. There are added exclusions and coverage
is excess over other valid insurance.
BU 0427–Condominium Association Directors’ and Officers’ Liability
This endorsement adds claims-made directors and officers liability coverage for condominium association directors and officers while acting within the scope of their appointed duties. This coverage is excess over other valid and collectible insurance. The limits are entered on BU 0428–Condominium Association Directors’ and Officers’ Liability–Supplemental Declarations.
BU 0428–Condominium Association Directors’ and Officers’ Liability–Supplemental
Declarations
This supplemental declarations is used in conjunction with BU 0427–Condominium Association Directors’ and Officers’ Liability. It has spaces for the each claim and aggregate limits, number of units, premium, deductible, and retroactive date.
BU 0429–Unlimited Extended Reporting Period
This endorsement is used only when a claims made coverage is part of the policy. It replaces the automatic 12-month extended reporting period in the policy with an unlimited extended reporting period subject to the premium charge on the endorsement schedule.
Note: The change from 12 month to unlimited does not include any increase in the limit of insurance.
BU 0434–Printers Errors and Omissions Liability
Damages because of errors or omissions in providing printing services are covered with this endorsement. This is for printing only and does not extend to copyright infringement or any publishing activities. A limit of insurance is needed on the declarations.
BU 0435–Real Estate Property Managers
This endorsement both broadens and restricts coverage and should be attached whenever the named insured is a real estate property manager. Coverage is broadened to include the named insured’s real estate property management operations. There are two restrictions. Coverage is excess and excludes property damage to any property the named insured manages, collect rent or for which it has supervisory responsibilities. The coverage is considered excess.
BU 0504–Premises Limitation As Described in Declarations
This restrictive endorsement limits coverage to only the
premises described on the declarations. Operations that are off premises but
directly related to the premises are also covered.
BU 0505–Premises Limitation as Described in Schedule
This restrictive endorsement limits coverage to only the
premises scheduled on the endorsement. Operations that are off premises but
directly related to the premises are also covered.
BU 0506–Premises Exclusion
This restrictive endorsement excludes the premises and
related operations on the endorsement schedule. Operations (including those
within the products/completed operation hazard) that are off premises but
directly related to the premises are also excluded.
BU 0507–Operations/Coverage Exclusion
This restrictive endorsement can be used to exclude products/completed operations from all or just some of the locations. It can also be used to exclude coverage for personal injury/advertising injury. There is also a third item for a free form description of operations or coverages to be excluded. If the third item is used, entries must be very precise in order to prevent confusion.
Note: Entries in this endorsement must be very precise in order to avoid ambiguity or confusion.
BU 0528–Building Glass Limited Coverage for Vandalism (01 19 addition),
The latest version of the policy form removed the glass breakage
coverage limitations. If the limitation is needed, this endorsement can be
attached.
BU 0601–Additional Insureds
The scheduled person or organization is an additional insured. This is excess coverage over any policy on which a person listed on this endorsement as an additional insured is the named insured.
Note: This
restriction as excess coverage could contradict contractual additional insured
requirements.
BU 0602–Additional Insureds–Architects/Engineers/Surveyors
Any architect, engineer or surveyor working for the named
insured is an additional insured. This is excess coverage over any policy on
which a person considered on this endorsement as an additional insured is the
named insured.
Note: This
restriction as excess coverage could contradict contractual additional insured
requirements.
BU 0603–Additional Insureds–Assignee/Mortgagee/Receiver
The scheduled assignee, mortgagee or receiver is an insured for only the premises scheduled on the endorsement. Coverage is limited to only the named insured’s ownership, maintenance of use of the premises. There is no coverage if the additional insured is involved in demolition, new construction or structural alterations at the premises.
BU 0604–Additional Insured–Controlling Interest
The scheduled entity is an insured only because of financial control of the named insured or premises of the named insured. There is no coverage if the additional insured is involved in demolition, new construction or structural alterations.
BU 0605–Additional Insured–Co-Owner of Premises
The scheduled entity is an insured for only the premises
scheduled on the endorsement in which the entity and the named insured are
co-owners.
BU 0606–Additional Insured–Lessor of Equipment
The scheduled person or organization is an additional insured but only as it relates to equipment leased to the named insured by that entity. This is excess coverage over any policy on which an entity considered on this endorsement as an additional insured is the named insured.
Note: This
restriction as excess coverage could contradict contractual additional insured
requirements.
BU 0607–Additional Insured–Manager or Lessors of Premises
The scheduled person or organization is an additional insured but only for the part of the scheduled premises leased to the named insured. There is no coverage if the additional insured is involved in demolition, new construction or structural alterations or after the named insured is no longer a tenant.
BU 0608–Additional Insured–Owners of Leased Land
The scheduled person or organization is an additional
insured but only for the part of the scheduled land leased to the named insured.
There is no coverage if the additional insured is involved in demolition, new
construction or structural alterations or after the named insured is no longer
leasing the land.
BU 0609–Additional Insured–Premises Permits
Political subdivisions listed on the endorsement are insureds but only as respects a premises controlled by the named insured and only for the types of operations described in the endorsement for which permits are issued by the political subdivision.
BU 0610–Additional Insured–Grantor of Franchise
The scheduled entity is an insured for only the operations
for which it has granted the named insured a franchise.
BU 0616–Additional Insured/Loss Payee–Equipment
This is both a Part I and a Part II endorsement. Under Part I it is agreed that any loss to the scheduled covered property will be paid jointly to the scheduled entity and the named insured. Under Part II the scheduled entity is an additional insured but only for equipment leased, sold or rented to the named insured by the scheduled entity.