MSO BUSINESSOWNERS POLICIES TRIGGER ENDORSEMENTS

(August 2019)

INTRODUCTION

The Mutual Service Office, Inc. (MSO) has developed a unique method to modify its coverage forms. The policy is built with a number of modifications known as trigger endorsements embedded into the form. The embedded modifications are triggered only when the endorsement number associated with that modification is entered on the declarations.

Example: The following wording appears at the end of 11. Water Damage Exclusion:

“If the term BU 50 02 is listed on the Declarations as an endorsement, paragraph 11.B. of this exclusion does not apply.

If the term BU 50 03 is listed on the Declarations as an endorsement, coverage is provided as though paragraph 11.B. did not apply but only up to the limit for Water Damage–Sewer/Drain Backup on the Declarations.”

BU 50 02 is entered on the declarations when backup of sewers and drains coverage is purchased. If backup of sewers and drains coverage is purchased but is subject to a sublimit, BU 50 03 is entered on the declarations and a sublimit is also entered.

This method can prevent confusion because the coverage changes are located within the policy and remain in context. A separate endorsement is not needed.

Trigger endorsements are used selectively and vary by policy.

The following trigger endorsements apply to Businessowners Policy–BU 04 01.

Number	Location in Policy	Description
BU 50 01	Part I A–Coverage D–Money and Securities	Provides Coverage D when Coverage B is not on the policy.
BU 50 02	Part I E–11. Water Damage Exclusions	Provides back up sewer, drain and sump coverage.
BU 50 03	Part I E–11. Water Damage Exclusions	Provides sewer, drain, and sump back up coverage but only up to the limit for it on the Declarations.
BU 50 04	Part II B–3. Employer’s Liability for Non-owned Automobile Coverage	Eliminates this Supplemental Coverage.
BU 50 05	Part II B–5. Incidental Alcoholic Beverage Coverage	Broadens coverage even if a charge is made for alcohol furnished/served/given but only if incidental.
BU 50 06	Common Glossary Part II–Products/Completed Operations Hazard	Products hazard applies only after the product is off premises.
BU 50 08	Part II B–7. Incidental Fire and Explosion Legal Liability Coverage	Coverage is not limited to only fire and explosion. It instead applies to any fortuitous loss.
BU 50 10	Part I A–Coverage C	Eliminates loss of business income coverage. Rental income and extra expense coverage remains.
BU 50 12	Part I B–5. Business Property Coverages	Eliminates Consequential Loss Coverage (Spoilage).

The following trigger endorsements apply to Named Perils Businessowners Policy–BU 04 02.

Number	Location in Policy	Description
BU 50 04	Part II B–3. Employer’s Liability for Non-owned Automobile Coverage	Eliminates this Supplemental Coverage.
BU 50 05	Part II B–5. Incidental Alcoholic Beverage Coverage	Broadens coverage even if a charge is made for alcohol furnished/served/given but only if incidental.
BU 50 06	Common Glossary Part II–Products/Completed Operations Hazard	Products hazard applies only when the bodily injury or property damage occur off premises.
BU 50 08	Part II B–7. Incidental Fire and Explosion Legal Liability Coverage	Coverage is not limited to only fire and explosion. It instead applies to any fortuitous loss.
BU 50 10	Part I A–Coverage C	Eliminates loss of business income coverage. Rental income and extra expense coverage remains.
BU 50 12	Part I B–5. Business Property Coverages	Eliminates Consequential Loss Coverage (Spoilage).