What type of coverage can Jane expect from her standard Business Owners Policy?

A standard Business Owners Policy (BOP) typically provides named peril coverage. This means that the policy specifies certain risks that are covered, such as fire, theft, or vandalism. If an event occurs that is not listed among the named perils, the policy will not cover the damage or loss associated with that event.

Named peril coverage is advantageous for businesses because it clearly delineates which specific risks are insured, allowing the business owner to understand the scope of their protection. This clarity can be beneficial when assessing risk management strategies or obtaining additional coverage for unlisted perils.

All-risk coverage, on the other hand, is a broader type of insurance that covers all perils except those explicitly stated as exclusions, which is not the standard offering in a Business Owners Policy. Extended Coverage refers to additional coverages that might be added to a policy but does not replace the need for named peril coverage in a standard BOP. Similarly, Property Damage Liability specifically pertains to liability for damages to another’s property, which is a different component of a business insurance policy and not what a BOP primarily offers.