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PF&M at a Glance AAIS BOP program  Small businesses represent the fastest growing segment of our economy, and most of us work in these businesses where co-workers typically number in the ones or tens rather than the hundreds or thousands. But “small business” doesn’t mean small loss exposure. The variety of small businesses is staggering, and so is the potential exposure. And all need insurance coverage, which is the reason for the American Association of Insurance Services’ (AAIS) Businessowners Program (BOP). The AAIS BOP was created to handle property and liability coverage needs of smaller businesses. The BOP is well suited to protect apartment and residential condominium associations, artisan contractors, many types of restaurants, florists, small grocers/convenience stores, dry cleaners, appliance repair shops, smaller wholesale and retail operations, and even a variety of processing operations. Qualification depends primarily on an operation’s physical size and annual sales. Specifically, most retail businesses with a total floor area of less than 25,000 square feet and annual sales of $3 million (or less) per location are eligible. Offices up to 100,000 square foot floor area are also eligible. A number of operation types may not be written under an AAIS BOP regardless of size or sales, such as automobile repair or salvage operations, service stations, auto dealers, parking lots or garages, bars/grills, nonresidential condo associations, contractors, manufacturers, household personal property, amusement facilities and farms. The AAIS BOPs (available on either a standard or a special form) insure buildings and structures including their completed additions, machinery and equipment, indoor and outdoor fixtures, property owned and used for premises service and maintenance (for instance, air conditioners, fire prevention or fire-fighting equipment, outdoor furniture and floor coverings). Also included are appliances for refrigeration, ventilation, cooking, dishwashing and laundering. The BOP insures business personal property that is owned or leased by the covered business. Coverage may apply even to such property that is located in the open or in nearby vehicles. Besides building and business personal property, the AAIS BOP also provides a certain amount of coverage for loss of income or extra expenses, if the loss or expense is created by a source of loss covered by the BOP. The AAIS BOP provides liability protection against many losses that may be suffered by third parties. Naturally such losses or lawsuits must be related to the insured operations. Coverage is also available for medical payments and legal expenses connected with third-party suits. Besides insuring a business for its bodily injury and property damage liability, the BOP includes limited coverage for certain types of personal injuries. Further, the form contains limited fire legal liability coverage. The AAIS forms may be modified by any of several dozen property and liability optional coverages. For added convenience, the program also offers several forms titled Property Additional Coverage Endorsements 1-4 that offer four different packages of added coverages, including accounts receivable, valuable papers, employee dishonesty, computers, spoilage, and outdoor signs protection. Please note that this is only an overview of this coverage. A thorough discussion of this coverage form may be found in the PF&M Analysis from The Rough Notes Company. Agency OnLine subscribers, please refer to PF&M Section 193.4-2, AAIS Businessowners Coverage Form Analysis for a more in-depth discussion of this coverage part. * |
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