A business owner's policy is unique in that
A) it contains automatic replacement protection.
B) the business owner cannot be the designated beneficiary.
C) property insured by the policy must have an after-loss residual value.
D) it cannot exclude named perils.

Question

Quizplus · Accepted Answer

A business owner's policy typically includes automatic replacement protection, which means that if covered property is completely destroyed, the insurer will pay to replace it without deducting for depreciation. This is a unique feature that is not found in all types of commercial insurance policies. The other answer choices are incorrect: B is false because the business owner can be a designated beneficiary; C is false because there is no requirement for property to have an after-loss residual value under a BOP; and D is false because a BOP can exclude named perils if desired.

A Business Owner's Policy Is Unique in That