INTRODUCTION

The Mutual Service Office, Inc. (MSO) has developed a unique method for modifying its coverage forms. The policy is built with a number of modifications, known as trigger endorsements, embedded in the main policy form, such as BU 04 01 or BU 04 03. These embedded modifications are triggered only when the endorsement number associated with that modification appears on the declarations.

Changes made from the 01 19 edition to the 05 23 edition are highlighted in bold.

Example: The following wording appears at the end of Part I E—Losses Not Insured--13. Water Damage Exclusions:

“If the term BU 50 02 is listed in the Declarations, then Exclusions 13.B. is deleted.”

“If BU 50 03 is listed in the Declarations, then Exclusion 13.B is amended in that we do cover damage caused by water or sewage which backs up through sewers or drains or overflows from a sump, up to the applicable limit shown in the Declarations Supplement.”

· BU 50 02 is entered on the declarations when backup of sewers and drains coverage is purchased.

· If backup of sewers and drains coverage is purchased but is subject to a sublimit, BU 50 03 is entered on the declarations, and a sublimit is also entered.

NOTE: In the 01 19 edition, the Water Damage Exclusion was listed under exclusion 11.

This approach avoids confusion by keeping coverage changes within the policy, maintaining context. No separate endorsement is required. Trigger endorsements are used selectively and vary by policy.

BU 04 01–BUSINESSOWNERS POLICY

The following trigger endorsements apply:

Number	Location in Policy	Description
BU 50 01	Part I A–Main Property Coverages, Coverage D–Money and Securities—Expanded Coverage Extension	Provides Coverage D – Money and Securities when Coverage B – Business Personal Property is not on the policy.
BU 50 02	Part I E – Losses Not Insured – 13. Water Damage Exclusions	Provides back-up sewer, drain, and sump coverage.
BU 50 03	Part I E – Losses Not Insured – 13. Water Damage Exclusions	Provides sewer, drain, and sump backup coverage, but only up to the limit listed in the Declarations.
BU 50 04	Part II B – Supplemental Coverages – 3. Employer’s Liability for Non-owned Automobile Coverage	Eliminates this Supplemental Coverage.
BU 50 05	Part II B – Supplemental Coverages – 5. Incidental Alcoholic Beverage Coverage	Broadens coverage even if a charge is made for alcohol furnished / served / given, but only if incidental and a minor part of the business operations.
BU 50 06	Common Glossary – Parts I and II – Part II – Products/Completed Operations Hazard	Products / completed operations hazard applies only when the bodily injury or property damage occurs off the insured premises.
BU 50 08	Part II B – Supplemental Coverages – 7. Incidental Fire and Explosion Liability Coverage	Coverage extends beyond fire and explosion to include any accidental loss occurring at a nonowned premises rented to or occupied by the named insured.
BU 50 10	Part I A–Main Property Coverages, Coverage C – Loss of Income Resulting From Direct Covered Loss	Eliminates loss of business income coverage. Rental income and extra expense coverage remain.
BU 50 12	Part I B – Supplemental Coverages – 4. Business Property Coverages	Eliminates Consequential Loss Coverage (Spoilage).

BU 04 02–NAMED PERILS BUSINESSOWNERS POLICY

The following trigger endorsements apply:

Number	Location in Policy	Description
BU 50 04	Part II B – Supplemental Coverages – 3. Employer’s Liability for Non-owned Automobile Coverage	Eliminates this Supplemental Coverage.
BU 50 05	Part II B – Supplemental Coverages – 5. Incidental Alcoholic Beverage Coverage	Broadens coverage even if a charge is made for alcohol furnished / served / given, but only if incidental and a minor part of the business operations.
BU 50 06	Common Glossary – Parts I and II – Part II – Products/Completed Operations Hazard	Products / completed operations hazard applies only when the bodily injury or property damage occurs off the insured premises.
BU 50 08	Part II B – Supplemental Coverages – 7. Incidental Fire and Explosion Liability Coverage	Coverage extends beyond fire and explosion to include any accidental loss occurring at a nonowned premises rented to or occupied by the named insured.
BU 50 10	Part I A–Main Property Coverages, Coverage C – Loss of Income Resulting From Direct Covered Loss	Eliminates loss of business income coverage. Rental income and extra expense coverage remain.
BU 50 12	Part I B – Supplemental Coverages – 4. Business Property Coverages	Eliminates Consequential Loss Coverage (Spoilage).