BP DS 01–BUSINESSOWNERS POLICY DECLARATIONS

(June 2026)

INTRODUCTION

The advisory Insurance Services Office (ISO) Businessowners Policy Declarations summarize and integrate key policyholder details, property protections, and general liability coverages. This format is only suggested since insurance companies typically create their own declarations. Nonetheless, the listed items are necessary as they trigger or clarify coverage within the coverage form.

This analysis pertains to the 08 24 edition, with changes from the 07 13 edition highlighted in bold.

GENERAL SECTION

Identification

This section includes spaces for the following entries:

·         Insurance Company Name

·         Producer/Agent Name

·         Named Insured

·         Named Insured Mailing Address

·         Policy Period beginning at 12:01 a.m. standard time at the named insured's mailing address

NOTE: In the 08 24 edition, the policy period beginning at 12:00 p.m. in Michigan and North Carolina has been removed because exceptions are no longer required in either state.

Premises Information

This section provides spaces for the following entries:

·         Described Premises Number, Building Number, and Address

NOTE: The premises and building numbers assigned to the premises are used throughout all sections of the policy.

·         Mortgageholder name and address for each premises number and building number

Insuring Agreement

This section explains that insurance is provided to the named insured in exchange for paying the premium. The coverage provided aligns with the Businessowners Coverage Form and is subject to all its terms.

Description of Business

This section provides space for two entries.

·         The first is the form of business. The available options include:

NOTE: This section of the declarations, used in Section II–Liability C, explains who is considered an insured under the coverage form. It is not included in Section I–Property. The presence of multiple named insureds may indicate that various types of business are checked.

·         The second section describes the business operations.

SECTION I–PROPERTY

Property Coverage Limits of Insurance

This section contains space for seven entries, which are:

·         Premises Number.

·         Building Number.

·         Type of Property. This is either building, business personal property, or both.

·         Actual Cash Value option for building coverage. This is either a "yes" or "no" entry.

·         Automatic Increase Building Limit (Percentage). The automatic increase is 8% unless a different percentage is entered.

·         Business Personal Property Seasonal Increase Percentage. This is 25% unless a different percentage is entered.

·         Limit of Insurance.

Blanket Insurance

If blanket insurance coverage applies, space is provided to list or describe the property type and the applicable limit of insurance.

Deductibles

This section shows the property deductibles applicable at each location per occurrence. Each covered premises offers three different deductible options:

·         Property Deductible

·         Optional Coverage Deductible (Other than Equipment Breakdown Protection Coverage)

·         Windstorm or Hail Percentage Deductible

NOTE: It is important to list the premise number for each deductible section.

Optional Coverage–Equipment Breakdown Protection Coverage Deductibles

An entry in this section is necessary when Optional Coverage–Equipment Breakdown Protection is included. The covered location, optional deductible, or optional revised time deductible should be filled in the spaces provided.

Earthquake/Volcanic Action Percentage Deductible

(08 24 edition)

In the 08 24 edition, this section has been removed from the Declarations Page. Additionally, the endorsement name has been changed to Earthquake and Volcanic Eruption Endorsement – BP 10 03 08 24. The premise number and percentage deductible can be entered on the endorsement schedule.

Theft Limitations–Optional Higher Limits (Per Policy)

Theft coverage is limited for certain types of covered property. This section allows for an increase to the theft limits for the described property. Enter the property description, the new higher limit, and the additional premium for the increased limit in the designated fields.

Additional Coverages

Section I–Property 5. Additional Coverages provides each of these coverages. This part allows the limit of insurance to be increased, the number of days of coverage to be extended, and for exemptions or coverages to be added. The modifications entered in the designated fields overwrite the default values in the coverage form. They are not additional limits.

The coverages are as follows:

Optional Higher Limits/Extended Number of Days (Per Policy)

·         Forgery or Alteration–Increased Limit. Default limit is $2,500.

·         Business Income–Extended Number of Days for Ordinary Payroll Expenses. Default days are 60.

·         Extended Business Income–Extended Number of Days. Default days are 60.

·         Electronic Data–Increased Limit. Default limit is $10,000.

·         Interruption of Computer Operations–Increased Limit. Default limit is $10,000.

Additional Coverage–Optional Higher Limits (Per Premises)

Entries in this section enable increasing the Fire Department Service Charge limits of insurance beyond the default $2,500. Enter the premises number, the higher applicable limit, and the additional premium for this increased limit in the designated spaces.

Additional Coverage–Business Income–Ordinary Payroll Additional Exemptions

Entries in this section categorize listed job classifications and/or employees in the same category as officers, executives, etc., so they are not subject to the ordinary payroll 60-day limitation under business income coverage.

Additional Coverage–Optional Higher limits (Per Policy)

(08 24 edition)

This section has been revised to apply per policy rather than by classification. The class code section has been removed. Entries in this section increase the limit of insurance from $5,000 for Business Income from Dependent Properties to the scheduled limit. Entries required are the higher limit of insurance and the additional premium.

Additional Coverage–Business Income from Dependent Properties 

The insured can opt to include or exclude Business Income coverage for Secondary Dependent Properties by selecting the Yes or No box.

Coverage Extensions–Optional Higher Limits (Per Premise)

(08 24 edition)

This section previously applied Per Classification but now applies Per Premise in the 08 24 edition.

Section I Property – A.6. – Coverage Extensions details each of these coverages.

·         Accounts Receivable. The default limit is $10,000 per location.

·         Valuable Papers and Records. The default limit is $10,000 per location.

·         Outdoor Property. The default limit is $2,500 per premises.

·         Business Personal Property Temporarily in Portable Storage Units. The default limit is $10,000.

·         Other (Specify).

NOTE: The column formerly labeled 'Class Code’ has been renamed to 'Premises Number' in the 08 24 edition to reflect the per premise change.

Coverage Extensions – Optional Higher Limits (Per Policy)

(08 24 edition)

In the 08 24 edition, this section is new and has been added for Optional Higher Limits regarding the Personal Property Off-premises Coverage Extension. While the default limit remains $10,000, insureds can now increase this amount with this new option. The additional premium and the insurance limit must be entered.

Optional Coverages

NOTE: Optional coverages must be selected by location. A supplemental endorsement is required if more than two locations are involved.

Select coverages by marking an “X” in the corresponding box. Coverage only applies if the box is marked. You must specify the location where the coverage applies and the limit of insurance. If "Other" is selected, provide a description of that coverage.

The available coverages that require an entry are as follows:

·         Outdoor Signs – per occurrence limit.

·         Money and Securities.

·         Employee Dishonesty – per occurrence limit.

·         Equipment Breakdown Protection Coverage. Entering a limit is not required.

·         When the Named Perils endorsement is attached, Money and Securities is not available. The only money option available is Burglary and Robbery optional coverage. Limits must be entered for the following:

·         Other (Specify).

Endorsements

You can add endorsements specific to the property section here. The required types and details for these endorsements are as follows:

·         Endorsements Applicable Per Policy

·         Endorsements Applicable Per Classification             

·         Endorsements Applicable Per Premises.

·         Endorsements Applicable Per Specific Building.

SECTION II–LIABILITY AND MEDICAL EXPENSES

Limits

The liability section starts by specifying the covered location and includes spaces for up to five insurance limits.

·         Liability and Medical Expenses (Per Occurrence)

·         Other than Products/Completed Operations Aggregate (Limit of Insurance)

·         Products/Completed Operations Aggregate (Limit of Insurance)

Optional Coverages

(8 24 edition)

There are four optional coverages. Coverage only applies if the box next to a coverage option is marked with an “X.” The available coverages and their limits that can be entered include:

·         BP 04 55–Broadened Coverage for Damage to Premises Rented to You (Per Occurrence)

·         Self-Storage Facilities–Customer Goods Legal Liability (Optional Increased Limits) (Per Occurrence)

·         Hotels, Motels, and Inns – Liability for Guests' Property (Optional Limits) (Per Occurrence and Per Guest)

·         Hotels, Motels, and Inns –Liability for Guests’ Property in Safe Deposit Boxes (Per Occurrence)

NOTE: Hotels and Inns are added in the 08 24 edition.

Deductible

The appropriate box must be marked if the Optional Property Damage Liability Deductible should apply. The available deductibles are:

·         BP 07 03–Business Liability Coverage–Property Damage Liability Deductible (Per Claim Basis)

·         BP 07 04–Business Liability Coverage–Property Damage Liability Deductible (Per Occurrence Basis)

Endorsements Applicable

Endorsements specific to the liability section of the policy are listed here. The required entries and types of endorsements are as follows:

·         Endorsements Applicable Per Policy

·         Endorsements Applicable Per Classification

·         Endorsements Applicable Per Premises

·         Endorsements Applicable Per Specific Building

PREMIUM

This section shows the total annual premium and the premium payment plan applicable for the annual term and at each anniversary for policies written for more than one year.

The Advance (Deposit) Premium (if applicable) is shown in the field provided.

The audit period and frequency for policies subject to audit are also displayed. The options for the audit period include Annually, Semi-annually, Quarterly, or Monthly.

COUNTERSIGNATURE OF AUTHORIZED REPRESENTATIVE

Spaces are designated for the authorized representative’s signature, including fields for their name, title, and signature. The date of countersignature must also be entered.

The remaining space can be utilized for the insurance company officers' facsimile signatures, if they are not located elsewhere.