What is true about the liability coverage in a businessowners policy?

What is true about the liability coverage in a businessowners policy?

• A. It offers broader coverage than a CGL
• B. It resembles the occurrence version of CGL coverage
• C. It is only for personal liability
• D. It excludes all commercial liability

Answer: (B)

The correct answer emphasizes that liability coverage in a businessowners policy (BOP) resembles the occurrence version of commercial general liability (CGL) coverage. This is significant because both types of policies provide protection for claims arising from incidents that occur during the policy period, regardless of when the claim is made. In a BOP, the liability coverage typically includes elements such as bodily injury and property damage, which are foundational to both BOP and occurrence CGL coverage. By resembling the occurrence version, a BOP provides a continuous layer of protection, allowing businesses to operate with peace of mind knowing they are covered for incidents during the period of their policy, as opposed to claims that arise after the fact. Understanding this aspect of BOP liability coverage is crucial for businesses that seek comprehensive protection, especially when evaluating their options between BOP and a standalone CGL policy.

The correct answer emphasizes that liability coverage in a businessowners policy (BOP) resembles the occurrence version of commercial general liability (CGL) coverage. This is significant because both types of policies provide protection for claims arising from incidents that occur during the policy period, regardless of when the claim is made.

In a BOP, the liability coverage typically includes elements such as bodily injury and property damage, which are foundational to both BOP and occurrence CGL coverage. By resembling the occurrence version, a BOP provides a continuous layer of protection, allowing businesses to operate with peace of mind knowing they are covered for incidents during the period of their policy, as opposed to claims that arise after the fact.

Understanding this aspect of BOP liability coverage is crucial for businesses that seek comprehensive protection, especially when evaluating their options between BOP and a standalone CGL policy.