Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Commercial LinesMedium
A Florida-based architect's firm operates from a rented office space. They are considering a Businessowners Policy (BOP) to cover their property and liability exposures. During a review of the policy, the agent explains that certain professional services rendered by the firm are excluded. Which type of liability is typically excluded from a standard Businessowners Policy and would require a separate policy?
- AAdvertising Injury Liability
- BPremises Liability
- CProducts-Completed Operations Liability
- DProfessional Liability
Show answer & explanationAnswer & explanation
Correct answer: D. Professional Liability
A standard Businessowners Policy (BOP) is designed for general business risks and typically excludes professional liability, which arises from errors or omissions in rendering professional services. Professionals like architects, doctors, and lawyers need a separate Professional Liability (Errors & Omissions) policy.
Why the other options are wrong
- A. Advertising Injury Liability covers claims arising from libel, slander, or copyright infringement in advertising, and is generally included in a BOP's liability section.
- B. Premises Liability covers injuries to visitors on the insured's property and is included in a standard BOP.
- C. Products-Completed Operations Liability covers bodily injury or property damage arising out of the insured's products or completed work, and is typically included in a BOP.
BOP Exclusions: Professional Liability
A standard Businessowners Policy (BOP) excludes coverage for claims arising from errors, omissions, or negligence in the rendering of professional services. This type of coverage requires a separate Professional Liability (Errors & Omissions) policy.
- BOP excludes professional services.
- Applies to architects, doctors, lawyers, consultants.
- Requires separate Professional Liability (E&O) policy.
Memory trick: BOP: 'NOT' for your professional 'MISTAKES'.