(August 2022)
The 01 19 edition of the Mutual Services Office (MSO) Businessowners Policy was filed in most states with a June 2019 effective date. This edition has a number of significant changes. The following summary highlights the changes.
Related Article: BU 04 01–MSO Businessowners Policies Analysis
Coverage A–Buildings
Related structures are garages and storage or similar outdoor structures. Previously related structures were garages, storage and similar outdoor structures.
Coverage B–Business Personal Property
When no Coverage A building glass coverage is
provided but only when the named insured is responsible to others for the
damage. The responsibility must be due to law or contract.
Coverage D–Money and Securities
The off premises coverage is expanded to include loss when with temporary or leased employees.
The deductible can be changed on the Declarations.
1. Accounts
Receivable Coverage
The inability of the named insured to collect on digital or cryptocurrency because of covered loss to records of such accounts is added.
2. Automatic Increase in Policy Limits
The prior edition limited the increase to 2%, but the current one requires a percentage to be entered on the Declarations.
4. Building Glass
Eliminated because building glass coverage is part of Coverage A and, when required by contract or law, under Coverage B.
5. Business Personal Property Extensions - C. Off Premises Coverage
Is modified to provide coverage while property is off premises in a rented storage unit.
6. Credit Card/Forgery/Counterfeit Money coverage
Two expansions of coverage:
8. Electronic Data Coverage
Coverage is limited to only electronic data owned by the named insured.
10. Employee Dishonesty Coverage
Introduces a condition that coverage for an employee who committed a dishonest/fraudulent act prior to the policy going into effect is not covered if the named insured, a director, officer, partner or trustee knew of such acts.
12. Fraudulent Transfer of Funds
This is a new supplemental coverage.
13. Lock Replacement Coverage
This is a new supplemental coverage.
15. Loss of Income from Interruption of Computer Operations
The prior version applied when business operations were interrupted while this edition applies when computer operations are interrupted.
19. Trees, Shrubs and Plants Coverage
Coverage is expanded to include vegetated roofs.
20. Valuable Papers and Records Coverage
Electronic and magnetic media are no longer considered valuable papers and records.
3. Descriptions of Causes of Loss - A. Aircraft
Is changed to specifically include direct damage to covered property caused by a drone and/or its parts.
B. Building glass
was removed for this listing, but outdoor signs and satellite dishes remain as not
covered except as modified.
E. Electronic Data adds an exception for prepackaged software but
only if it is the named insured’s stock.
I. Vehicles is changed by adding drones to its list of vehicles not
covered.
3. Electrical Damage Exclusion adds computer hardware, computer components and computer equipment as property not covered for damage due to artificially generated electrical currents.
7. Intentional Loss Exclusion adds an exception when loss occurs because reasonable force is being used to protect people or property.
3. Contractual Coverage is modified to specifically not apply to contracts related to drones.
5. Incidental Alcoholic Beverages Coverage specifically provides coverage when others are permitted to bring and use alcoholic beverages on the premises.
9. Incidental Mobile Equipment Coverage is changed to move the definition from this item to the Glossary section. The wording is not changed.
11. Personal Injury/Advertising Injury Coverages expands to include such injury taking place through electronic means without a territory limitation. In addition, the word electronically is added in the coverage. The exclusion for electronic bulletin board is made more restrictive by adding social media, chat room and blockchain to the exclusion. Making social media pages that are misleading is also excluded.
1. Alcoholic Beverage Exclusion is further restricted by eliminating coverage for claims due to training, hiring, etc., and also for providing or not providing transportation to any person considered under the influence of alcohol.
3. Business Activities/Business Risk Exclusions is further restricted by listing a number of activities that are considered recall of a product that is not covered.
5. Data Breach Exclusion is added.
6. Electronic Aggression Exclusion is added.
8. Endangerment or Harm Exclusion is modified to provide an exception for actions taken to protect persons or property.
15. Unmanned Aerial Vehicles/Drones Exclusion is added.
2. Fracking Exclusion is added.
2. Fracking Exclusion is added.
First Named Insured is added.
Fracking is added.
Unmanned Aerial Vehicle is added.
Fraudulent Instruction is added.
Data Breach is added.
Electronic Aggression is added.
Mobile Equipment is moved from the Incidental Mobile Equipment Supplemental Coverage to this section with no change in definition.