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  3. BP-00-03

What it does

BP 00 03 is the single coverage form of the ISO Businessowners program. It combines Section I – Property, Section II – Liability and Section III – Common Policy Conditions, and is completed by the Businessowners Policy Declarations (BP DS 01) and whatever endorsements the account needs. The current edition is 08 24; ISO introduced the August 2024 forms in a multistate revision of the coverage form, endorsements, manual rules and classification table.

Section I – Property

  • Building and business personal property on a special-perils (open perils) basis; the named-perils option is added by BP 10 09.
  • Additional Coverages include debris removal, preservation of property, fire department service charge, collapse, water damage tear-out, business income for up to 12 consecutive months and extended business income, extra expense, civil authority, pollutant clean-up, money orders and counterfeit money, forgery, increased cost of construction, business income from dependent properties, glass expenses, fire extinguisher recharge, electronic data, interruption of computer operations and limited fungi coverage.
  • Coverage Extensions for newly acquired or constructed property, personal property off premises, outdoor property, personal effects, valuable papers, accounts receivable and property in portable storage units.
  • Optional Coverages activated by a limit on the Declarations: Outdoor Signs, Money and Securities, Employee Dishonesty and Equipment Breakdown Protection.
  • Replacement cost is the general valuation basis with an 80% insurance-to-value provision; the Declarations carry an automatic building-limit increase and a business personal property seasonal increase.

Section II – Liability

Business Liability covers bodily injury, property damage and personal and advertising injury on an occurrence basis, with defense and supplementary payments outside the limits, plus medical expenses. ISO's basic limit is $300,000 per occurrence with options up to $2,000,000, a general aggregate and a separate products-completed operations aggregate each equal to twice the occurrence limit, and a damage to premises rented to you limit.

Key exclusions agents should explain

  • Professional services: the liability exclusion lists legal, accounting, design, medical, cosmetic and personal grooming, optical and hearing aid, body piercing and pharmacy services. Class endorsements such as BP 08 01, BP 08 03, BP 08 07 and BP 08 09 give back limited coverage for eligible classes.
  • Liquor liability, auto, employment-related practices, pollution and other standard GL-type exclusions apply; endorsements such as BP 04 04, BP 04 89 and BP 05 89 add coverage back where eligible.

Quoting and selling notes

  • Check eligibility first: ISO's general limits are 35,000 square feet and $6,000,000 annual gross sales per location, with class-specific rules (for example contractors' payroll, restaurant seating and alcohol share, office building stories).
  • Confirm limits for building and BPP, the business income approach, whether Optional Coverages (signs, money and securities, employee dishonesty, equipment breakdown) are activated, and the property deductible.
  • Ask about professional exposures, alcohol sales, hired or non-owned autos, employees (EPL) and contract requirements for additional insureds or waivers.

Related forms

Declarations BP DS 01; index BP IN 01; named perils BP 10 09; hired/non-owned auto BP 04 04; ordinance or law BP 04 46; spoilage BP 04 15; EPL BP 05 89; micro version BP 00 04.