Texas General Lines — Property and CasualtyCommercial LinesMedium
A small medical practice has a Businessowners Policy (BOP). An employee accidentally leaves a window open, and during a storm, rain damages several patient files and an expensive diagnostic machine. Under a standard BOP, which of the following coverages would apply to the damaged diagnostic machine?
- AMedical Payments
- BBusiness Personal Property
- CProfessional Liability
- DBuilding
Show answer & explanationAnswer & explanation
Correct answer: B. Business Personal Property
Under a standard BOP, the diagnostic machine, being movable property used in the business, would be covered under the 'Business Personal Property' section. The BOP combines property and liability coverages into a single policy.
Why the other options are wrong
- A. Medical Payments is a liability coverage for injuries to others, not property damage to the insured's own equipment.
- C. Professional Liability (E&O) covers financial losses due to errors or omissions in professional services, not physical damage to property.
- D. The 'Building' coverage would apply to the structure itself, not movable equipment.
BOP Business Personal Property
The Business Personal Property coverage within a Businessowners Policy (BOP) protects movable property owned by the business, such as furniture, fixtures, equipment, and stock.
- Covers movable business assets
- Includes furniture, equipment, stock
- Part of the property coverage section of a BOP
Memory trick: BOP's property: Building is fixed, Personal is portable.