Texas General Lines — Property and CasualtyCommercial LinesHard
A small restaurant owner has a Businessowners Policy (BOP). A customer slips and falls on a wet floor inside the restaurant, sustaining a minor injury. The restaurant owner wants to pay for the customer's medical expenses without admitting fault or involving a lengthy liability claim process. Which BOP coverage would allow for this immediate, no-fault payment?
- APersonal and Advertising Injury Liability
- BMedical Payments
- CBodily Injury and Property Damage Liability
- DSupplementary Payments
Show answer & explanationAnswer & explanation
Correct answer: B. Medical Payments
Medical Payments coverage under a BOP (which mirrors CGL Coverage C) allows for the payment of reasonable medical expenses for bodily injury caused by an accident on the insured's premises or operations, regardless of fault, and is designed for prompt resolution of minor injuries.
Why the other options are wrong
- A. This covers non-physical injuries like libel, slander, or false arrest, unrelated to a slip-and-fall injury.
- C. This coverage addresses legal liability for bodily injury and property damage, which typically involves determining fault and a formal claims process.
- D. Supplementary Payments are additional amounts paid for defense costs, bond premiums, etc., not a primary coverage for medical expenses.
BOP Medical Payments
Within a Businessowners Policy (BOP), Medical Payments coverage provides for the payment of reasonable medical expenses for bodily injury caused by an accident on the insured's premises or operations, regardless of fault, up to a specified limit.
- No-fault coverage
- Covers medical expenses for bodily injury
- Applies to accidents on premises or from operations
Memory trick: BOP's liability: A (Accidents), B (Bad Words), C (Care for minor injuries).