What it does
BP 07 01 is the contractor class endorsement of the BOP. It removes tools and equipment from the base Covered Property and gives them back under its own coverages, each activated by a Schedule entry:
- Coverage 1 – Contractors' Installation: property at each covered job site, an all-job-sites aggregate (three times the each-site limit in the 01 10 Schedule), property in transit and property at a temporary storage location.
- Coverage 2 – Contractors' Tools and Equipment: a blanket limit with a per-item sub-limit option, or scheduled items.
- Coverage 3 – Non-owned Tools and Equipment and Coverage 4 – Employees' Tools, with per-tool and per-employee caps.
Who needs it
Plumbers, electricians, HVAC, carpenters, painters and other trades written on a BOP. ISO limits BOP contractor eligibility (annual payroll not over $300,000, no exterior work above three stories, subcontracted work no more than 10% of sales, no equipment rental to others).
Quoting and selling notes
- Get a tool schedule or a realistic blanket value and note the largest single item; per-item sub-limits apply under blanket coverage.
- Ask whether the contractor installs materials it owns until acceptance; installation coverage protects that property before it becomes part of the owner's building.
- Older listings showed BP 07 01 as an outdoor signs form; outdoor signs coverage is actually an Optional Coverage inside BP 00 03.
Related forms
BP 00 03; contractor AI endorsements BP 04 50, BP 04 51, BP 14 02.
