The 2013 Changes To The ISO Businessowners Policy (BOP) May 15, 2013 at 2pm ET National Webinar

Transcription

1 The 2013 Changes To The ISO Businessowners Policy (BOP) May 15, 2013 at 2pm ET National Webinar Overview Effective July 1, 2013 in most states Insurance Services Office will make: 33 major property form changes 4 major liability changes 30 endorsement changes 16 new endorsements These changes will make the BOP s coverage similar to the April 2013 revisions in their Commercial General Liability, Commercial Property Forms and various endorsements. The ADDITIONAL INSURED changes include a new blanket contractual endorsement, a new primary and noncontributory endorsement, and a limitation of coverage for additional insureds to contractual insurance requirements. In addition to these changes, we ll highlight some critically important coverage gaps and issues in the BOP program. The purpose of this webinar is to provide an overview of the major changes in order to obtain the objectives listed below. Learning Objectives At the conclusion of this webinar, you should be able to: Understand the nature and reasons for over 35 Property and Liability BOP, and endorsement changes that are effective in most states on July 1, Explain these changes to your customers if asked and caution them about some of the potential pitfalls introduced by these changes. Determine how these changes can best be risk managed by insureds and prospects. Minimize your errors and omissions exposure relative to agents and others who have not carefully reviewed these changes. The webinar will last approximately 120 minutes. Times below are average estimates. 1

2 Course Outline Introductory Comments Outlining the ISO change/filing process and the role of the Big I Technical Affairs Committee and the Mid-America Technical Conference. (2 minutes) History of the Businessowners Policy (BOP) and its relationship to the Commercial Package Policy (CPP) (2 minutes) Changes to Policy Forms The order of discussion may vary slightly. Section I - Property 1. Business Personal Property - Coverage Radius (4 minutes) 2. Vegetated Roofs (3 minutes) 3. Electronic Data In Building Equipment (2 minutes) 4. Debris Removal (8 minutes) 5. Business Income Additional Coverage - Extended Business Income (3 minutes) 6. Business Income From Dependent Properties Additional Coverage Secondary Dependent Properties (3 minutes) 7. Business Personal Property Temporarily In Portable Storage Units Coverage Extension (2 minutes) 8. Dishonesty Exclusion (3 minutes) 9. Specified Causes Of Loss Property Definition (2 minutes) 10. Limitations (2 minutes) 11. Newly Acquired Or Constructed Property Coverage Extension (2 minutes) 12. Employee Dishonesty Optional Coverage (2 minutes) 13. Business Personal Property (2 minutes) 2

3 14. Covered Causes Of Loss - Risk Of Loss (2 minutes) 15. Fire Department Service Charge Additional Coverage (2 minutes) 16. Business Income And Extra Expense Additional Coverages - Coverage Radius (2 minutes) 17. Ordinance Or Law Exclusion (2 minutes) 18. Temporary Or Leased Employees (2 minutes) 19. Business Income From Dependent Properties Additional Coverage (2 minutes) 20. Earth Movement Exclusion (1 minutes) 21. Loss Payment Property Loss Condition (1 minute) SECTION II - LIABILITY 22. Liquor Liability Exclusion (9 minutes) 23. Electronic Data Exclusion (1 minutes) 24. War Liability Exclusion (1 minute) 25. Personal And Advertising Injury Exclusion (2 minutes) SECTION III - COMMON POLICY CONDITIONS (APPLICABLE TO SECTION I - PROPERTY AND SECTION II - LIABILITY) 26. Other Insurance Condition (2 minutes) ENDORSEMENTS Approximately 1 minutes each (unless noted) BP Business Income Changes - Time Period BP Utility Services - Time Element 3

4 BP Electronic Data Liability - Limited Coverage BP Flood Coverage BP Specified Business Personal Property Temporarily Away From Premises BP Increase In Rebuilding Expenses Following Disaster (Additional Expense Coverage On Annual Aggregate Basis) BP Employee Dishonesty - Named Employee(s) BP Additional Insured - Owners, Lessees Or Contractors - With Additional Insured Requirement For Other Parties In Construction Contract BP Liquor Liability Coverage - Bring Your Own Alcohol Establishments BP Condominium Association Coverage BP Condominium Commercial Unit-owners Coverage BP Condominium Commercial Unit-owners Optional Coverages BP Amendment - Liquor Liability Exclusion - Exception For Scheduled Premises Or Activities BP Limitations On Coverage For Roof Surfacing BP Communicable Disease Exclusion BP Amendment Of Personal And Advertising Injury Definition BP Amendment - Liquor Liability Exclusion - Exception For Scheduled Premises Or Activities BP Protective Safeguards BP Food Contamination BP Water Back-up And Sump Overflow 4

5 BP Utility Services - Direct Damage BP Utility Services - Time Element BP Functional Building Valuation BP Electronic Data Liability - Limited Coverage BP Electronic Data Liability - Broad Coverage BP Extended Reporting Period For Electronic Data Liability - Broad Coverage BP Amendment Of Insured Contract Definition BP Windstorm Or Hail Losses To Roof Surfacing - Actual Cash Value Loss Settlement BP Debris Removal Additional Insurance BP Increased Cost Of Loss And Related Expenses For Green Upgrades BP Exclusion Of Loss Due To By-products Of Production Or Processing Operations (Rental Properties) BP Higher Limits BP Primary And Noncontributory - Other Insurance Condition BP Condominium Association Coverage BP Condominium Commercial Unit-owners Coverage BP Additional Insured - Managers Or Lessors Of Premises BP Additional Insured - Controlling Interest BP Additional Insured - State Or Governmental Agency Or Subdivision Or Political Subdivision 5

6 - Permits Or Authorizations Relating To Premises BP Additional Insured - Mortgagee, Assignee Or Receiver BP Additional Insured - Owners Or Other Interests From Whom Land Has Been Leased BP Additional Insured - Co-owner Of Insured Premises BP Additional Insured - Engineers, Architects Or Surveyors BP Additional Insured - Lessor Of Leased Equipment BP Additional Insured - Vendors BP Additional Insured - Designated Person Or Organization BP Additional Insured - Engineers, Architects Or Surveyors Not Engaged By The Named Insured BP Additional Insured - Owners, Lessees Or Contractors - Scheduled Person Or Organization BP Additional Insured - Owners, Lessees Or Contractors - With Additional Insured Requirement In Construction Contract BP Additional Insured - State Or Governmental Agency Or Subdivision Or Political Subdivision - Permits Or Authorizations BP Additional Insured - Owners, Lessees Or Contractors - Completed Operations BP Additional Insured - Grantor Of Franchise BP Additional Insured - State Or Governmental Agency Or Subdivision Or Political Subdivision - Permits Or Authorizations Relating To Premises BP Additional Insured - State Or Governmental Agency Or Subdivision Or Political Subdivision - Permits Or Authorizations BP Additional Insured - Engineers, Architects Or Surveyors BP Additional Insured - Engineers, Architects Or Surveyors Not Engaged By The Named Insured BP Additional Insured - Owners, Lessees Or Contractors - With Additional Insured Requirement In Construction Contract BP Food Contamination BP Contractors' Installation, Tools And Equipment Coverage BP Apartment Buildings BP Apartment Buildings - Loss Or Damage To Tenants' Autos (Legal LiabilityCoverage) BP Restaurants 6

7 BP Restaurants - Loss Or Damage To Customers' Autos (Legal Liability Coverage) BP Residential Cleaning Services BP Named Perils BP Barber Shops And Hair Salons Professional Liability BP Optical And Hearing Aid Establishments BP Pharmacists BP Beauty Salons Professional Liability BP Limited Exclusion - Personal And Advertising Injury - Lawyers Sign Off 7