Form BP 10 03: Businessowners Special Property Perils Form
1. What the Form Is
Form BP 10 03, often titled "Businessowners Special Property Perils Form" or a similar variation, is an endorsement used with a Businessowners Policy (BOP). Its primary function is to define or modify the covered causes of loss for direct physical damage to the insured's covered property. This form typically establishes property coverage on a "special perils" or "open perils" basis. This means the policy covers losses from all perils unless the peril is specifically excluded or limited within the policy language. This provides broader protection compared to a "named perils" form (like the BP 10 09), which only covers losses from perils explicitly listed in the policy. While the standard Businessowners Coverage Form (BP 00 03) itself generally provides special perils coverage , the BP 10 03 endorsement might be used to explicitly state, clarify, or modify the terms of this special perils coverage, particularly in older policy editions or specific carrier programs.
2. Classes of Business It Applies To
The Businessowners Policy, and consequently an endorsement like BP 10 03, is designed for a wide array of small to medium-sized "Main Street" businesses. The special perils coverage afforded by this endorsement would be beneficial for businesses seeking comprehensive protection for their buildings and business personal property. Examples include:
- Retail Stores: Such as boutiques, bookstores, or hardware stores, protecting inventory, fixtures, and the building if owned.
- Offices: Including professional services like accountants, lawyers, or insurance agencies, covering office furniture, equipment, and tenant improvements.
- Service Businesses: For example, barber shops, dry cleaners (those meeting eligibility), or print shops.
- Apartment Buildings and Condominium Associations: Covering residential buildings and common areas.
- Limited Cooking Restaurants: Protecting kitchen equipment, dining furniture, and the structure.
- Wholesale Businesses: For those that meet BOP eligibility requirements regarding size and operations.
- Self-Storage Facilities: Covering the buildings that house storage units.
Real-world example: A local bakery, eligible for a BOP, would benefit from the BP 10 03 endorsement (or the inherent special perils coverage in BP 00 03) to cover its ovens, mixers, display cases, and building from a wide range of potential damages, such as accidental damage from a burst water pipe (subject to policy terms) or vandalism, which might not be covered under a more restrictive named perils form.
3. Special Considerations
While "special perils" coverage is broad, it is not "all-risk
