Business Owner Policy (BOP) | Return to Underwriting Guidelines

The BOP manual provides property & liability coverages for eligible property as described under programs. The BOP Policy is designed to insure the average-to above-average commercial risk. In order to maintain our competitive premiums, please adhere to our underwriting guidelines for the BOP policy. The following guidelines are designed to assist the agent in determining risk acceptability.

ELIGIBILITY:

OWNERS ? Building(s) and Business Property.

APARTMENT ? Building(s) ?

1) Not over 6 stories in height

2) Containing 5 to 60 units

3) Does not have mercantile occupancy

OFFICE ? Building(s) ?

1) Primarily used for office purposes

2) Not over 3 stories in height

3) Does not exceed 10,000 sq. ft. per floor

4) Does not have mercantile occupancy

SERVICE ? Building(s) ?

1) Primarily used for service businesses shown in the classification list

2) Not over 3 stories in height

3) Does not exceed 10,000 sq. ft. per floor

MERCANTILE ? Building(s) ?

1) Principal occupancy is buying and

selling of merchandise

2) Does not exceed 10,000 sq. ft. per floor

3) Not over 3 stories in height.

CHURCHES ? Building (s) ?

1) Principal occupancy is for religious purposes

2) Does not exceed 10,000 sq. ft. per floor.

TENANTS ?

OFFICES ? Does not occupy more than 10,000 sq. ft. in any one building

SERVICE ? Does not occupy more than 10,000 sq. ft. in any one building

MERCANTILE ?

2) Does not exceed 10,000 sq. ft. in any one building.

* NOTE: When occupancy contains only offices and apartments, use the highest rated classification.

OTHER GUIDELINES:

1. The agent has no binding authority on risks with Property or Liability claims over $2,500. each within the last three years. The Application must be submitted to your underwriter for approval. Please submit loss information from the prior carrier.

2. The agent has no binding authority on risks cancelled by another company for underwriting reasons, claims frequency or non-payment of premium. Please contact your underwriter prior to submitting application.

3. Student housing is unacceptable due to higher VMM exposure.

4. Row houses are generally not accepted.

5. Seasonal risks are generally not acceptable.

6. Rehabilitation Projects are not acceptable, until work is completed. It may be written on a Commercial Fire policy with limited coverages with acceptable supporting business. Please submit to your underwriter for approval.

7. When requested by underwriter, proof of lease with security deposit for each tenant or proof of tenant's HO?4 policy.

8. BUILDING MAINTENANCE: The building must be kept up to date. Plumbing, heating, and electrical installations must be up to code. There must be no water stains or loose plaster on ceilings or walls; floor coverings must not be ripped; light fixtures must be installed properly; hallways must be well lit; sidewalks must be even and free of ice and snow when applicable; porches & steps ? must have railings; steps must be even; no holes in floorboards.

9. BUILDING HOUSEKEEPING: Dwelling and surrounding areas must be kept free of debris, trash and other attractive nuisances.

10. ELECTRICAL: All units must have proper electrical systems. If a fused system, proper amperage fuses must be used. Electrical services must be approved by a licensed electrician or building (code enforcer) inspector.

11. Central heat is required. The following are not acceptable central heating sources?WOODBURNING STOVES, FIREPLACES, KEROSENE HEATERS or any type of portable heater as the main heating source. Portable kerosene heaters are forbidden, even as a supplemental heat source. Chimneys utilized for solid fuel (wood, coal) systems must be lined.

12. ROOFS: The roof should be in good condition. Please note any areas in poor condition.

13. SMOKE DETECTORS: They must be operational in all units and hallways. Batteries should be checked and replaced periodically. Fire extinguishers are recommended.

14. There must be two exits for every unit above the ground floor.

15. SF?3 FORM CRITERIA: Below?average dwellings are not acceptable. Dwellings under renovation are not acceptable. Interior and exterior must show no signs of deterioration or lack of maintenance.The plumbing, heating, electrical installation, water heater, roof and chimney must have been updated within the last twenty years.All apartments must be occupied. The Company reserves the right to deny SF-3 coverage based on information received from the photos, application or inspection report.

16. REPLACEMENT COST RATING: The Company reserves the right to deny Replacement Cost Rating, based on information received from the photos, application or inspection report.

17. REPLACEMENT COST PROVISIONS CRITERIA: Below?average buildings are not acceptable. Buildings under renovation are not acceptable. Interior and exterior must show no signs of deterioration or lack of maintenance. Plumbing, heating and electrical installation must have been updated in accordance with Company guidelines.Any apartment must be occupied.

18. Any risk currently on our Prohibited List.

19. Risks with unusual recreational activities involving horses or recreational vehicles are generally not acceptable.

20. Any risk with a prior claim involving a dangerous or uncontrolled animal will not be accepted.

21. Risks with aggressive animals are not acceptable whether the animal belongs to the insured, tenant or temporary resident.

COMMERCIAL ? BUSINESSOWNERS PROHIBITED LIST

Unacceptable Classes:

Amusement Resorts or Parks Tire Recapping

Auto Body Shops M & C Exposures

Auto Garages BF?CGL

Boat Yards or Marinas Athletic Parks

Bowling Alleys Car Washes

Dancehalls Recreational Facilities

Pool halls Tanning Salon Liability

Junkyards, scrap yards Auction Houses

Vacant or Unoccupied Risks Boats, Canoes, Rowboats for Hire

Student Housing Ski Lodges or Resorts

Night Clubs Daycare Services

Taverns Campsites

Resort Motels Trailer Parks

Skating Rinks Hospitals, Nursing Homes

Spray Painting Adult Homes

Golf Course Liability Health/Fitness Center Liability

Machine Shops Tanneries, Skin Mills

Furniture Manufacturers (M & C) Gas Dealers/Distributors

Furniture Upholsterers Restaurants without Auto-Extinguishing Units

IN SOME OF THE ABOVE CASES, PROPERTY COVERAGES MAY BE AVAILABLE. PLEASE CONTACT YOUR UNDERWRITER FOR POSSIBLE PROPERTY COVERAGES AVAILABILITY.

Eligible Classes for Businessowners Retail Classifications

This is only a partial listing of products available.Please contact your agent for additional assistance.

Auto Parts

Bakeries

Barber Shop

Beauty Shop

Beverage Store

Bicycle Shop

Book Store
Camera and Photographic Supply Store

Candy Store

Card Store

Carpet Store

Clothing Store
Craft Store

Curtain/Drapery Store

Department Store

Drug Store

Fabric Store

Fish, Meat, Poultry Store

Florist
Furniture Store

Hobby Shop

Garden and Lawn Store

General Store

Gift Shop

Glass, Paint, Wallpaper Store
Grocery Store

Hardware Store

Health Food Store

Household Appliance Store

Ice Cream Store

Kitchen Accessories Store

Leather Goods Store
Liquor Store

Music, Tape, Record Store

Office Machines Store

Optical Goods

Pet Store
Radio and Television Store

Retail, NOC

Sewing Machine Store

Shoe Repair Store

Shoe Store

Sporting Goods Store

Tailor Shop

Tobacco Store

Upholstery Goods Store

Vacuum Cleaner Sales & Service Store

Variety Store

Wholesale, NOC

Eligible Classes For Businessowners’ Service Classification

This is only a partial listing of products available.Please contact your agent for additional assistance.

Appliance Repair

Clothing Alteration

Clothing Rental

Dental Labs

Diaper Service

Dry Cleaning Plants

Electrotyping

Funeral Directors

Laundry, Dry Cleaning Pick up Stations

Letter Service

Linen Supply

Linotyping

Lithographing

Photocopying and Blueprinting

Photoengraving

Photofinishing Lab

Photographic Studios

Printing – Commercial and Related Services

Radio and TV Repair

Shoe Repair

Tailors

Tuxedo Rental

Valet Service

Watch, Clock and Jewelry Repair

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