Commercial Property and Casualty Coverages
Commercial property
The Building and Personal Property (BPP) form covers building, business personal property, and personal property of others. Causes of loss forms run Basic, Broad, and Special - mirroring named vs open peril logic. Coinsurance percentages (80%, 90%, 100%) work exactly as in personal lines, but commercial forms also offer agreed value (no coinsurance penalty) and blanket coverage across locations. Learn business income coverage: it pays lost net income plus continuing expenses during the period of restoration, plus extra expense to minimize downtime, and can be extended by an extended period of indemnity endorsement. Other coverages: equipment breakdown, builders risk, inland marine, crime (employee theft, computer fraud, money and securities), and the vacancy condition.
The BOP
The businessowners policy bundles property and liability for eligible small businesses. It is written on a special (open-peril) basis, includes business income for 12 months, and has built-in limits and optional endorsements. Ineligible classes (auto dealers, banks, bars) belong in a commercial package.
Commercial general liability
The CGL occurrence form has Coverage A (bodily injury and property damage), Coverage B (personal and advertising injury), and Coverage C (medical payments). Insureds include the named insured, partners, members, and employees acting within scope. Key exclusions: your product, your work, impaired property, recall, auto, workers' comp, and pollution. Watch products-completed operations aggregate versus the general aggregate.
Worked example: A contractor's employee injures a customer on the job - CGL responds. The same contractor's defective workmanship requiring repair of the project - the your work exclusion bars the claim for the cost of correcting the work itself.