BP 04 02 08 24 Additional Insured – Managers or Lessors of Premises

This endorsement allows for scheduling as additional insureds managers or lessors of premises in connection with the insured’s occupancy or operations. If shown in the endorsement schedule, BP 04 02 includes as additional insureds designated persons or organizations for their liability arising out of the ownership, maintenance, or use of that part of the premises leased to the insured and shown in the schedule.

The following additional exclusions are included in this endorsement:

• The insurance does not apply to any occurrence at the insured location after the named insured ceases to be a tenant in the premises described in the schedule.
• The insurance does not apply to any structural alterations, new construction, or demolition operations performed by the persons or organizations designated in the schedule.

ISO added language to the additional insured endorsements in the 2013 revision in response to states enacting anti-indemnification laws, which prohibit provisions in construction contracts that require a party to indemnify another party against liability for such other party's own fault or negligence. The endorsements now state that insurance is provided only to the extent permitted by law. The endorsements also state that if coverage provided to the additional insured is required by agreement or contract, the insurance provided will not be broader than what is required by the agreement or contract. The most the insurer will pay is the amount required by the agreement or contract or the policy limits, whichever is less.
The 08 24 edition of the endorsement eliminates the “arising out of” language and replaces it with language that specifically provides the additional insured with coverage for vicarious or contributory negligence only, in design to prevent alleged coverage for sole negligence of the additional insured. The additional insured will only have coverage for the bodily injury, property damage or personal and advertising injury that is caused, in whole or in part, by either the named insured or those acting on behalf of the named insured.

The revised wording is generally designed to prevent any alleged coverage for the additional insured's sole negligence. This could be considered a reduction in coverage in those states in which named insureds are permitted to contractually hold harmless an additional insured for their sole negligence, and where courts have enabled such coverage.

The endorsement will not increase the applicable limits of insurance in the Declarations.

BP 04 04 01 10 – Hired Auto and Non-Owned Auto Liability

This endorsement is used to add coverage for hired auto liability and/or non-owned auto liability to the businessowners policy. The endorsement applies to bodily injury or property damage arising out of the maintenance or use of a hired auto by the insured or the insured's employees in the course of business. The insurance also applies to bodily injury or property damage arising out of the use of a nonowned auto in the insured's business by any person. A specific premium charge must be shown in the Declarations for this coverage to apply.

The following are insureds under BP 04 04: the insured, any other person using a hired auto with the insured's permission, and any other person or organization for their liability because of acts omissions of an insured. For nonowned auto coverage, any partner or executive officer of the insured's or any of the insured's employees are insureds, but only while such nonowned auto is being used in the insured's business.

Definitions are provided for "auto business," "hired auto," and "nonowned auto."

BP 04 06 08 24 – Additional Insured – Controlling Interest

BP 04 06 adds persons or organizations, listed in the schedule, only for their liability arising out of their financial control of the named insured or premises they own, maintain, or control while the named insured occupies or leases those premises. The insurance does not apply to structural alterations, new construction, and demolition operations performed by or for that person or organization.

ISO added language to the additional insured endorsements in the 2013 revision in response to states enacting anti-indemnification laws, which prohibit provisions in construction contracts that require a party to indemnify another party against liability for such other party's own fault or negligence. The endorsements now state that insurance is provided only to the extent permitted by law. The endorsements also state that if coverage provided to the additional insured is required by agreement or contract, the insurance provided will not be broader than what is required by the agreement or contract. The most the insurer will pay is the amount required by the agreement or contract or the policy limits, whichever is less. The endorsement will not increase the applicable limits of insurance in the Declarations.

The 08 24 edition of the form contains no changes other than a typographical correction under paragraph C. to indent the words, ‘whichever is less’ to be directly under items 1. and 2. in that paragraph.

BP 04 07 08 24 – Additional Insured – State or Governmental Agency or Subdivision or Political Subdivision – Permits or Authorizations Relating to Premises

This endorsement is used to add states or governmental organizations as additional insureds when issuing permits or authorizations to owners or lessees in connection with certain premises hazards.
BP 04 07 includes as additional insureds any state, governmental agency or subdivision, or political subdivision shown in the schedule. The insurance applies only when the state, governmental agency or subdivision, or political subdivision has issued a permit or authorization in connection with premises the name insured owns, rents, or controls and to which the insurance applies.

Only the following hazards are covered: the existence, maintenance, repair, construction, erection, or removal of advertising signs, awnings, canopies, cellar entrances, coal holes, driveways, manholes, marquees, hoistaway openings, sidewalk vaults, street banners or decoration, or similar exposures; the construction, erection, or removal of elevators; or the ownership, maintenance, or use of any elevators covered by the insurance.

ISO added language to the additional insured endorsements in the 2013 revision in response to states enacting anti-indemnification laws, which prohibit provisions in construction contracts that require a party to indemnify another party against liability for such other party's own fault or negligence. The endorsements now state that insurance is provided only to the extent permitted by law. The endorsements also state that if coverage provided to the additional insured is required by agreement or contract, the insurance provided will not be broader than what is required by the agreement or contract. The most the insurer will pay is the amount required by the agreement or contract or the policy limits, whichever is less. The endorsement will not increase the applicable limits of insurance in the Declarations.

The 08 24 edition of the form contains no changes other than a typographical correction under paragraph C. to indent the words, ‘whichever is less’ to be directly under items 1. and 2. in that paragraph.

BP 04 08 08 24 – Additional Insured – Townhouse Associations

This endorsement adds each individual townhouse owner as an insured, but only with respect to liability as a member of the townhouse association and not with respect to liability arising out of the ownership, maintenance, use, or repair of the property to which the owner has title.

The 08 24 edition of the endorsement revised the title to remove the reference to ‘unit-owners’, and added a provision that restricts coverage to the unit-owner for liability arising out of maintenance, use or repair of that part of the premises reserved for the unit-owners exclusive use or occupancy. This restriction encompasses such areas as the common area, parking area, garden plot, storage closets or lockers. Other revisions are made to provide for consistency of wording with provisions of other additional insured endorsements, and to conform to ISO uniformity standards. To the extent that the prior editions of the endorsement did not contain the added restriction, the newer edition could be a reduction in coverage.

BP 04 09 08 24 – Additional Insured – Mortgagee, Assignee or Receiver

Endorsement BP 04 09 adds as additional insureds persons listed in the schedule with respect to liability as mortgagee, assignee, or receiver on policies covering owners or general lessees. Coverage is added with respect to liability arising out of the ownership, maintenance, or use of premises by the named insured, but the endorsement excludes construction and alterations.

ISO added language to the additional insured endorsements in the 2013 revision in response to states enacting anti-indemnification laws, which prohibit provisions in construction contracts that require a party to indemnify another party against liability for such other party's own fault or negligence. The endorsements now state that insurance is provided only to the extent permitted by law. The endorsements also state that if coverage provided to the additional insured is required by agreement or contract, the insurance provided will not be broader than what is required by the agreement or contract. The most the insurer will pay is the amount required by the agreement or contract or the policy limits, whichever is less. The endorsement will not increase the applicable limits of insurance in the Declarations.

The 08 24 edition of the form contains no changes other than a typographical correction under paragraph C. to indent the words, ‘whichever is less’ to be directly under items 1. and 2. in that paragraph.

BP 04 10 08 24 – Additional Insured – Owners or Other Interests From Whom Land Has Been Leased

Endorsement BP 04 10 includes as additional insureds persons or organizations listed in the schedule with respect to liability arising out of the ownership, maintenance, or use of that part of the land leased to the named insured.

The following additional exclusions apply to this coverage: the insurance does not apply to any occurrence that takes place after the named insured ceases to lease the land and to structural alterations, new construction, or demolition operations performed by the additional insureds.

ISO added language to the additional insured endorsements in the 2013 revision in response to states enacting anti-indemnification laws, which prohibit provisions in construction contracts that require a party to indemnify another party against liability for such other party's own fault or negligence. The endorsements now state that insurance is provided only to the extent permitted by law. The endorsements also state that if coverage provided to the additional insured is required by agreement or contract, the insurance provided will not be broader than what is required by the agreement or contract. The most the insurer will pay is the amount required by the agreement or contract or the policy limits, whichever is less. The endorsement will not increase the applicable limits of insurance in the Declarations.

The 08 24 edition of the form contains no changes other than a typographical correction under paragraph C. to indent the words, ‘whichever is less’ to be directly under items 1. and 2. in that paragraph.

BP 04 11 08 24 - Additional Insured – Co-Owner Of Insured Premises

This endorsement includes as additional insureds the persons or organizations shown in the schedule with respect to liability as co-owner of the premises shown in the schedule.

ISO added language to the additional insured endorsements in the 2013 revision in response to states enacting anti-indemnification laws, which prohibit provisions in construction contracts that require a party to indemnify another party against liability for such other party's own fault or negligence. The endorsements now state that insurance is provided only to the extent permitted by law. The endorsements also state that if coverage provided to the additional insured is required by agreement or contract, the insurance provided will not be broader than what is required by the agreement or contract. The most the insurer will pay is the amount required by the agreement or contract or the policy limits, whichever is less. The endorsement will not increase the applicable limits of insurance in the Declarations.

The 08 24 edition of the form contains no changes other than a typographical correction under paragraph C. to indent the words, ‘whichever is less’ to be directly under items 1. and 2. in that paragraph.

BP 04 12 04 17 – Limitation of Coverage to Designated Premises, Project or Operation

This endorsement limits liability coverage to only those premises, operations and/or projects specifically designated in the schedule.

Endorsement BP 04 12 replaces the liability coverage in the businessowners coverage form to apply onlyto bodily injury, property damage, personal and advertising injury, and medical expenses arising out of the ownership, maintenance, or use of the premises shown in the schedule and the operations necessary or incidental to the premises or the project shown in the schedule.

BP 04 13 08 24 – Additional Insured – Engineers, Architects or Surveyors

This endorsement adds as additional insureds engineers, architects or surveyors engaged by the insured for premises and operations liability, without a need to schedule these individually.

BP 04 13 adds under the who is an insured section any architect, engineer, or surveyor engaged by the named insured with respect to liability for bodily injury, property damage, or personal and advertising injury caused in whole or in part by the named insured's acts or omissions or the acts or omissions of those acting on the named insured's behalf in connection with the named insured's premises or in the performance of the named insured's ongoing operations.

ISO added language to the additional insured endorsements in the 2013 revision in response to states enacting anti-indemnification laws, which prohibit provisions in construction contracts that require a party to indemnify another party against liability for such other party's own fault or negligence. The endorsements now state that insurance is provided only to the extent permitted by law. The endorsements also state that if coverage provided to the additional insured is required by agreement or contract, the insurance provided will not be broader than what is required by the agreement or contract. The most the insurer will pay is the amount required by the agreement or contract or the policy limits, whichever is less. The endorsement will not increase the applicable limits of insurance in the Declarations.

The 08 24 edition of the form contains no changes other than a typographical correction under paragraph B. to indent the words, ‘whichever is less’ to be directly under items 1. and 2. in that paragraph.

BP 04 15 02 21 – Spoilage Coverage

This endorsement extends the property coverage under the businessowners coverage form to include coverage for spoilage of perishable stock caused by breakdown or contamination and/or power outage, as long as the insured meets the parameters described in the endorsement.

Endorsement BP 04 15 adds perishable stock as covered property if the stock is owned by the named insured and used in the named insured's business or is owned by others and is in the named insured's care, custody, or control. Property located on buildings, in the open, or in vehicles is added as property not covered. Breakdown or contamination is added as a covered cause of loss.

The following exclusions are added: loss or damage caused by or resulting from the disconnection of any refrigerating, cooling, or humidity control system from the source of power; the deactivation of electrical power caused by the manipulation of any switch or other device used to control the flow of electrical power or current; the inability of an electrical utility company to provide sufficient power due to lack of power or governmental order; the inability of a power source at the described premises to provide sufficient power due to lack of generating capacity to meet demand; or breaking of any glass that is a permanent part of any refrigerating, cooling, or humidity control unit.

The deductible shown in the schedule is the only deductible that applies to this coverage. The value of perishable stock the insured has sold but not delivered is at selling price less discounts and expenses the insured otherwise would have had; other perishable stock is valued at actual cash value.

The endorsement provides an additional condition for refrigeration maintenance agreements. If breakdown or contamination is designated as a covered cause of loss and a refrigeration maintenance agreement applies, the insured must maintain a refrigeration maintenance or service agreement as described on the form.

BP 04 16 08 24 – Additional Insured – Lessor of Leased Equipment

This endorsement adds as an additional insured a designated person or organization leasing equipment to the insured, for liability that involves contributory negligence and arises out of an occurrence that takes place during the term of the lease. A separate endorsement should be attached for each such lessor named as an additional insured, including a description of the leased equipment and its location.

ISO added language to the additional insured endorsements in the 2013 revision in response to states enacting anti-indemnification laws, which prohibit provisions in construction contracts that require a party to indemnify another party against liability for such other party's own fault or negligence. The endorsements now state that insurance is provided only to the extent permitted by law. The endorsements also state that if coverage provided to the additional insured is required by agreement or contract, the insurance provided will not be broader than what is required by the agreement or contract. The most the insurer will pay is the amount required by the agreement or contract or the policy limits, whichever is less. The endorsement will not increase the applicable limits of insurance in the Declarations.

The 08 24 edition of the form contains no changes other than a typographical correction under paragraph C. to indent the words, ‘whichever is less’ to be directly under items 1. and 2. in that paragraph.

BP 04 17 01 10 – Employment-Related Practices Exclusion

This endorsement is used to add a specific exclusion for employment-practices liability under the businessowners coverage form.

Endorsement BP 04 17 adds an exclusion for bodily injury or personal or advertising injury to a person arising out of any refusal to employ that person, termination of that person's employment, or employment-related practices, policies, acts, or omissions directed at that person. The insurance also does not apply to bodily injury or personal or advertising injury to the spouse, child, parent, brother, or sister of that person as a consequence of bodily injury or personal or advertising injury to that person at whom any of the employment-related practices described is directed.

The 2010 revision added a statement that the exclusion applies whether the injury-causing event occurs before, during, or after employment of that person. The exclusion also applies whether the insured may be liable as an employer or in any other capacity and to any obligation to share damages with or repay someone else who must pay damages because of the injury.

BP 04 18 08 24 – Amendment – Liquor Liability Exclusion

This is the reintroduction and revision of a previously withdrawn endorsement, first introduced in 1989. When first introduced, the endorsement amended the businessowners liquor liability exclusion by specifying that the exclusion applied under certain circumstances, including when a charge is made for serving or furnishing alcoholic beverages, or when alcohol is served or furnished without charge if a license is required for the activity. The endorsement also removed the requirement that the insured be "in the business of" manufacturing, distributing, selling, serving or furnishing alcoholic beverages for the exclusion to apply. In a subsequent multistate filing in 2001, BP 04 18 was withdrawn as a result of the introduction of Liquor Liability Endorsement BP 04 88. However, the two endorsements can serve different purposes as BP 04 88 generally provides liquor liability coverage with no exception subject to the Liability And Medical Expenses Limit Of Insurance, whereas BP 04 18 provides liquor liability coverage but only under certain circumstances also subject to the Liability And Medical Expenses Limit Of Insurance.

In addition, the Liquor Liability Exclusion – Exception For Scheduled Premises Or Activities endorsement BP 04 19 is available and serves the same purpose of amending the liquor liability exclusion in the underlying coverage form as BP 04 18. However, BP 04 19 provides a schedule to designate premises or activities to which the exclusion will not apply.

Endorsement BP 04 18 08 24 is therefore being reintroduced with several amendments:

• For consistency with the current language in BP 04 19 08 24, to indicate that the causing or contributing to the intoxication of any person, includes causing or contributing to the intoxication of any person because alcoholic beverages were permitted to be brought on your premises, for consumption on your premises.
• For consistency with Liquor Liability exclusion contained in BP 00 03 08 24, to explicitly state that the exclusion applies even if the claims against any insured allege the negligence or other wrongdoing in:
  • The supervision, hiring, employment, training or monitoring of others by that insured; or
  • Providing or failing to provide transportation with respect to any person that may be under the influence of alcohol.

If the occurrence which caused the bodily injury or property damage involved that which is described in the exclusion.

• To indicate that the liquor liability exclusion will apply if an insured permits any person to bring any alcoholic beverages on the named insured's premises, for consumption on the named insured's premises.

The attachment of BP 04 18 08 24 generally results in a reduction of coverage.

BP 04 19 08 24 – Amendment – Liquor Liability Exclusion – Exception for Scheduled Premises or Activities

This endorsement serves the same purpose as the previously described BP 04 18 endorsement; however, BP 04 19 enables designated premises or activities to be excepted from the exclusion, as shown in the endorsement schedule.

Endorsement BP 04 19 excludes bodily injury or property damage for which any insured may be held liable by reason of causing or contributing to the intoxication of any person, including causing or contributing to the intoxication of a person when alcoholic beverages were permitted to brought and consumed on the insured's premises; when an insured furnishes alcoholic beverages to persons who are under the legal drinking age or under the influence of alcohol; or by any statute, ordinance, or regulation relating to the sale, gift, distribution, or use of alcoholic beverages.

The exclusion applies even if the claims allege negligence or other wrongdoing in the supervision, hiring, employment, training, or monitoring of others by an insured, or in providing or failing to provide transportation with respect to any person who may be under the influence of alcohol. The exclusion applies only to insureds that manufacture, sell, or distribute alcoholic beverages; serve or furnish alcoholic beverages for a charge whether such activity requires a license or is for the purpose of financial gain or livelihood; serves or furnishes alcoholic beverages without a charge if a license is required; or permits any person to bring any alcoholic beverages on your premises for consumption on the insured's premises.
To accommodate bring your own (BYO) establishments, an exception to the exclusion is made for bodily injury or property damage arising out of the selling, serving, or furnishing of alcoholic beverages at the activities described in the schedule or permitting any person to bring alcoholic beverages on the premises described in the schedule for consumption on the premises described in the schedule.
In addition to BP 04 18 and BP 04 19, ISO is introducing an optional endorsement, BP 16 32 Amendment – Liquor Liability Exclusion – Limited Exception for Bring Your Own Alcohol. This new endorsement does not exclude BYO and it also provides an exception to the exclusion to address BYO that is similar to that found in the 08 24 edition of the businessowners coverage form BP 00 03.

If the attachment of the new endorsement BP 16 32 Is a replacement of BP 04 19, it may result in a broadening of coverage. Otherwise BP 16 32 results in a reduction of coverage.

BP 04 30 08 24 – Protective Safeguards

This endorsement is used when protective services or devices are required as a condition to the insurance coverage, which requires that the company be notified if the devices or services are discontinued or out of service. The endorsement excludes coverage if, prior to the loss event, the insured failed to take certain actions concerning maintenance and notification of suspension or impairment of a protective safeguard.
This endorsement adds a general condition to the policy requiring the insured to maintain the protective devices and services listed in the schedule. Six symbols are provided to identify the protective safeguards: P-1, automatic sprinkler system; P-2, automatic fire alarm; P-3, security service; P-4, service contract; P-5 (added with the 2013 revision), automatic commercial cooking exhaust and extinguishing system; and P-9, the protective safeguard system described in the schedule.

The endorsement adds an exclusion for fire, if, before the fire, the insured knew of any suspension or impairment in any protective safeguard listed in the schedule and failed to notify the insured or failed to maintain a listed protective safeguard in complete working order.

The 08 24 endorsement contains several revisions. A new paragraph B. is added restating the failure to comply exclusions in paragraph A. This paragraph also adds language reinforcing coverage for fire under circumstances where the insured has complied with the required conditions, but an automatic fire alarm or other automatic system listed in the schedule of the endorsement fails to operate as intended due to conditions beyond the insured's control.

In paragraph A. a new condition is added requiring that an automatic fire alarm or other automatic system listed in the schedule be actively engaged and maintained in the “on” position at all times. Clearly, a protective safeguard that is not activated would not provide protection and as such does not fulfill the expectation that is integral to the insurer’s acceptance of the risk.

The additional condition added to Paragraph A. is consistent with ISO’s understanding of the traditional application of this endorsement. However, with respect to insurers that have provided coverage in situations in which protective systems were in working order but not actively engaged, the explicit requirement for active engagement represents a potential reduction in coverage.

There is no change in coverage with respect to the other changes being made to this endorsement.

BP 04 31 07 13 – Food Contamination

This endorsement provides coverage for certain expenses and Business Income losses sustained as a result of the described premises being ordered closed by the Board of Health or any other governmental authority as a result of the discovery or suspicion of food contamination. The form pays the expense to clean equipment, the cost to replace contaminated or suspected to be contaminated food, medical tests of vaccinations for potentially infected employees, the loss of business income if operations are suspended, and additional advertising expenses incurred to restore the insured's reputation.

A limit of $10,000 is provided, except for advertising expenses, which carry a $3,000 limit. Higher limits can be indicated in the schedule. Fines and penalties levied by the Board of Health or other governmental agencies are not covered. The virus or bacteria exclusion does not apply to this endorsement.
Endorsement BP 04 31 was revised in 2013 to indicate that covered expenses include necessary medical tests or vaccinations for the insured's employees who are potentially infected by food contamination.

BP 04 37 07 02 – Exclusion - Personal and Advertising Injury

This endorsement excludes personal and advertising injury from the coverages section of the liability portion of the businessowners coverage form.

BP 04 38 01 06 – Medical Expenses – Exclusion

This endorsement removes medical payments coverage from the businessowners coverage form by excluding the paragraph pertaining to medical expenses. A supplementary payments coverage extension is added for expenses incurred by the insured for first aid administered to others at the time of an accident for bodily injury to which the insurance applies.

BP 04 39 07 02 – Abuse or Molestation Exclusion

This endorsement excludes bodily injury, property damage, or personal and advertising injury arising out of the actual or threatened abuse or molestation of any person while in the insured's care, custody, or control. Bodily injury, property damage, or personal and advertising injury arising out of the negligent employment, investigation, supervision, reporting to the proper authorities or failure to report, or retention of a person for whom any insured is or ever was legally responsible is also excluded.

BP 04 40 07 02 – Coverage for Injury to Leased Workers

BP 04 40 amends the businessowners liability coverage portion with respect to the employer's liability exclusion to provide that the definition of "employee" does not include leased worker or temporary worker.

BP 04 41 07 13 – Business Income Changes – Time Period

This endorsement changes the coverage period for the civil authority additional coverage to up to four consecutive weeks. For the business income from dependent properties additional coverage, the coverage begins immediately after the time of the direct physical loss or damage at the described premises. In the 2013 revision, ISO broadened coverage by providing coverage with respect to secondary dependent properties, as well.

The definition of "period of restoration" is changed to immediately after the time of direct physical loss or damage caused by or resulting from a covered cause of loss at the described premises.

BP 04 46 08 24 – Ordinance or Law Coverage

If indicated on the declarations, this endorsement is used to add ordinance or law coverage to the policy, to extend coverage for additional loss for the time necessary to repair or replace the damaged building to conform with current building laws and ordinances.

BP 04 46 requires the following two conditions to be met for coverage to be provided: (1) the ordinance or law regulates the demolition, construction, or repair of buildings or establishes zoning or land use requirements at the described premises and is in force at the time of loss; and (2) the building sustains covered direct physical damage, which, as a result, requires the insured to comply with the ordinance or law, or the building sustains covered and not covered direct physical damage, which, as a result of the damage in its entirety, requires the insured to comply with the ordinance or law. In the case of part of the damage being covered and part not being covered, only a portion of the loss will be paid. However, if damage that is not covered is the subject of the ordinance or law, there is no coverage even if the building also sustained covered damage.

The coverage applies only to the minimum requirements of the ordinance or law. Coverages must be listed in the schedule, and the building to which the coverage applies must also be identified in the schedule.
Enforcement or compliance with any ordinance or law requiring the demolition, repair, replacement, reconstruction, remodeling, or remediation of property due to contamination by pollutants or due to the presence, growth, proliferation, spread, or any activity of fungi or wet or dry rot is not covered. The enforcement or compliance of any ordinance or law requiring any insured or others to test for, monitor, clean up, remove, contain, treat, detoxify, neutralize, or in way respond to or assess the effects of pollutants, fungi, or wet or dry rot is also not covered.

Three coverages are provided: coverage for loss to the undamaged portion of the building, demolition cost coverage, and increased cost of construction. A business income and extra expense optional coverage is also available.

The 08 24 edition of the endorsement contains several revisions. First, an option is added to paragraph B. of the endorsement to include an ordinance or law that is promulgated or revised after the loss, but prior to commencement of the repair or reconstruction, provided that the ordinance or law compliance is required as a condition precedent to obtaining a building permit or certificate of occupancy. This is referred to hereafter as a post-loss ordinance or law option.

Coverage 1, which is the loss to the undamaged portion of the building, is also revised with respect to the Limit of Insurance that applies to that coverage grant and the loss payment provisions that address that coverage. The Limit of Insurance is elaborated upon to recognize that the building limit might apply in the declarations or elsewhere in the policy. The loss payment clause is revised to explicitly convey that the building limit in event of earthquake or flood loss (if such perils are added), may be lower than the limit that otherwise applies. This is to take into consideration that earthquake and flood perils may be written as a sublimit.

Paragraph G. (previously paragraph B.7. in earlier editions) relates to the business income and extra expense optional coverage. This provision is revised to align the description of an ordinance or law with the description in paragraph B., and to add a post-loss ordinance or law option. The provision is further revised for consistency with paragraph B.6., and the content has been streamlined by referring to a suspension of operations covered under the policy and the period of restoration.

BP 04 47 08 24 – Additional Insured – Vendors

Endorsement BP 04 47 adds as additional insureds any persons or organizations (vendors) shown in the schedule only with respect to bodily injury or property damage arising out of the insured's products described in the schedule that are distributed or sold in the regular course of the vendor's business.

ISO added language to the additional insured endorsements in the 2013 revision in response to states enacting anti-indemnification laws, which prohibit provisions in construction contracts that require a party to indemnify another party against liability for such other party's own fault or negligence. The endorsements now state that insurance is provided only to the extent permitted by law. The endorsements also state that if coverage provided to the additional insured is required by agreement or contract, the insurance provided will not be broader than what is required by the agreement or contract. The most the insurer will pay is the amount required by the agreement or contract or the policy limits, whichever is less. The endorsement will not increase the applicable limits of insurance in the declarations.

The insurance does not apply to the following: bodily injury or property damage for which the vendor is obligated to pay damages by reason of assumption of liability in a contract or endorsement; any express warranty not authorized by the named insured; physical or chemical changes to the product made intentionally by the vendor; repackaging unless unpacked solely for the purpose of inspection, demonstration, testing, or the substitution of parts if instructed by the manufacturer and repackaged in the original container; failure to make such inspections, adjustments, tests, or servicing as the vendor agreed to make or normally undertakes; demonstration, installation, servicing, or repair operations except operations performed at the vendor's premises in connection with the sale of the product; products that have been labeled or relabeled after distribution or sale by the named insured or that have been used as a container, part, or ingredient of any other thing or substance by of for the vendor; bodily injury or property damage arising out of the sole negligence of vendor for its own acts or omissions or those or its employees or anyone else acting on its behalf.

The 08 24 edition of the form contains no changes other than a typographical correction under paragraph C. to indent the words, ‘whichever is less’ to be directly under items 1. and 2. in that paragraph.

Of note is that ISO has introduced a new endorsement, BP 15 84 Additional Insured – Vendors – Automatic Status When Required in Agreement. This endorsement allows for adding vendors as additional insureds when required in a written agreement the same as provided under BP 04 47, without the need to schedule each vendor separately.

BP 04 48 08 24 – Additional Insured – Designated Person or Organization

This endorsement adds as additional insureds persons or organizations shown in the schedule only with respect to bodily injury, property damage, or personal and advertising injury caused in whole or in part by the named insured's acts or omission or the acts and omissions of those acting on the named insured's behalf in the performance of the insured's ongoing operations or in connection with premises the insured owns or rents.

ISO added language to the additional insured endorsements in the 2013 revision in response to states enacting anti-indemnification laws, which prohibit provisions in construction contracts that require a party to indemnify another party against liability for such other party's own fault or negligence. The endorsements now state that insurance is provided only to the extent permitted by law. The endorsements also state that if coverage provided to the additional insured is required by agreement or contract, the insurance provided will not be broader than what is required by the agreement or contract. The most the insurer will pay is the amount required by the agreement or contract or the policy limits, whichever is less. The endorsement will not increase the applicable limits of insurance in the Declarations.

The 08 24 edition of the form contains no changes other than a typographical correction under paragraph B. to indent the words, ‘whichever is less’ to be directly under items 1. and 2. in that paragraph.

BP 04 49 08 24 – Additional Insured – Engineers, Architects or Surveyors Not Engaged by the Named Insured

This endorsement adds as additional insureds those engineers, architects, or surveyors shown in the schedule only with respect to liability for bodily injury, property damage, or personal and advertising injury caused in whole or in part by the named insured's acts or omissions or the acts or omissions of those acting on the insured's behalf in the performance of the insured's ongoing operations performed by the insured or on the insured's behalf. Also added are engineers, architects, or surveyors while not engaged by the named insured but are contractually required to be added as additional insureds to the policy.

ISO added language to the additional insured endorsements in the 2013 revision in response to states enacting anti-indemnification laws, which prohibit provisions in construction contracts that require a party to indemnify another party against liability for such other party's own fault or negligence. The endorsements now state that insurance is provided only to the extent permitted by law. The endorsements also state that if coverage provided to the additional insured is required by agreement or contract, the insurance provided will not be broader than what is required by the agreement or contract. The most the insurer will pay is the amount required by the agreement or contract or the policy limits, whichever is less. The endorsement will not increase the applicable limits of insurance in the Declarations.

The 08 24 edition of the form contains no changes other than a typographical correction under paragraph B. to indent the words, ‘whichever is less’ to be directly under items 1. and 2. in that paragraph.

BP 04 50 08 24 – Additional Insured – Owners, Lessees or Contractors – Scheduled Person or Organization

This endorsement provides additional insured liability coverage for policies covering contractors or subcontractors, but only for their ongoing operations performed for owners or lessees of buildings, or contractors by the insured contractor or subcontractor. The name and location to be covered must be shown in the schedule of the endorsement.

The 08 24 edition of the form contains no changes other than a typographical correction under paragraph C. to indent the words, ‘whichever is less’ to be directly under items 1. and 2. in that paragraph.

BP 04 51 08 24 – Additional Insured - Owners, Lessees or Contractors – Automatic Status When Required in a Written Construction Agreement With You

This endorsement includes as additional insureds owners, lessees or contractors who have signed a contract or an agreement requiring them to be added as additional insureds on a policy covering a contractor or a subcontractor with respect to liability in connection with the insured contractor's ongoing operations performed for that additional insured. The additional insured does not need to be scheduled for coverage to apply; the coverage is provided based on the contractual requirement that they be added as additional insured for the specific job.

The 08 24 edition of the form contains no changes other than a typographical correction under paragraph C. to indent the words, ‘whichever is less’ to be directly under items 1. and 2. in that paragraph.

BP 04 52 08 24 – Additional Insured – State or Governmental Agency or Subdivision or Political Subdivision – Permits or Authorizations

This endorsement provides coverage for certain premises hazards, or for state or federal governmental organizations issuing permits or authorizations to contractors, but does not apply to operations performed for such governmental organizations. The specific state or federal governmental organization issuing the permit or authorization must be shown in the schedule of the endorsement.

The 08 24 edition of the form contains no changes other than a typographical correction under paragraph B. to indent the words, ‘whichever is less’ to be directly under items 1. and 2. in that paragraph.

BP 04 53 08 24 – Water Back-Up and Sump Overflow

This endorsement adds water back-up and sump overflow as causes of loss. The coverage pays for direct physical loss or damage to covered property caused by or resulting from water or waterborne material that backs up through or overflows or is otherwise discharged from a sewer or drain or that overflows or is otherwise discharged from a sump, sump pump, or related equipment. The coverage applies even if the overflow or discharge results from mechanical breakdown of the sump pump or related equipment.
Coverage does not apply to loss or damage resulting from an insured's failure to keep the sump pump or related equipment in proper working condition or to perform routine maintenance or repair necessary to keep a sewer or drain free from obstructions. In the 2013 revision, ISO updated the form to reinforce that coverage does not apply when sump pump failure is caused by or results from power failure unless the policy is endorsed to include power failure.

The form provides an annual aggregate limit of $5,000 per location. A different limit can be indicated in the schedule.

ISO added language in the 2013 revision to indicate that the term "drain" includes a roof drain and related fixtures.

In the 08 24 edition of the endorsement, ISO added language to further reinforce that the mechanical breakdown exclusion included in the businessowners coverage form BP 00 03 is not designed to apply with respect to coverage provided by this endorsement. This change is a reinforcement of coverage intent, with no affect on coverage.

BP 04 54 01 06 – Newly Acquired Organizations

Any organization the insured newly acquires or forms—other than a partnership, joint venture, or limited liability company—and over which the insured maintains ownership or majority interest qualifies as a named insured if no other insurance is available to that organization. The coverage is available only for 90 days after the organization is required or formed, or the end of the policy period, whichever is earlier.
Business liability coverage does not apply to bodily injury or property damage that occurred before the insured acquired or formed the organization and to personal advertising injury arising out of an offense committed before the insured acquired or formed the organization.

BP 04 55 01 06 – Broadened Coverage for Damage to Premises Rented To You

This endorsement broadens coverage by stating that the listed exclusions do not apply to property damage, where in the underlying Businessowners Coverage form, the exclusions do not apply to damage by fire. The endorsement provides a schedule for indicating the limit that will apply to this coverage.

BP 04 56 07 13 – Utility Services – Direct Damage

This form promises to pay for loss or damage to covered property described in the schedule caused by the interruption of service to the premises, which must result from direct physical loss or damage by a covered cause of loss to the utility services described in the endorsement. Both the property to be covered and the utility service interruption to be covered must be indicated in the schedule with options for water supply, communication supply, or power supply. Overhead transmission lines must be shown as “included” or “not included”. Electronic data is not covered.

The wastewater removal service option was newly added with the 2013 revision, with water supply property meaning pumping stations and water mains supplying water to the described premises. The updated forms language amplifying that transmission lines include distribution lines was also added in the 2013 edition.

The limit of insurance that applies to utility services in the endorsement schedule is included in the limit that applies to the covered property, and is not an additional limit of insurance.

BP 04 57 07 13 – Utility Services – Time Element

This endorsement adds time element coverage applicable to utility services interruption as indicated in the endorsement schedule. BP 04 57 promises to pay for loss of business income or extra expense at the described premises in the schedule caused by the interruption of service to the premises, which must result from direct physical loss or damage by a covered cause of loss to the utility services described in the endorsement. The property to be covered and the type(s) of utility service must be indicated in the schedule. Electronic data is not covered.

The wastewater removal service option was newly added with the 2013 revision, with water supply property meaning pumping stations and water mains supplying water to the described premises. Overhead transmission lines must also be shown as “included” or “not included”, if applicable. Electronic data is not covered. The updated forms language amplifying that transmission lines include distribution lines was also added in the 2013 edition.

The limit of insurance that applies to covered property is replaced by the limit of insurance shown in this endorsement schedule.

BP 04 58 01 06 – Business Income and Extra Expenses Coverage for Year 2000 Computer-Related and Other Electronic Problems

This endorsement provides a method for writing coverage for loss of business income and extra expense caused by computer-related or other electronic problems due to the Year 2000 and beyond. Such coverage has an annual aggregate limit of $25,000 in any one policy year, regardless of the number of computers or the number of instances involving computer failure.

BP 04 64 01 06 – Year 2000 Computer-Related and Other Electronic Problems – Limited Coverage Options

This endorsement provides optional coverage for liability arising gout of computer-related problems due to the year 2000. Insurers and insureds must agree on the type of coverage to be provided and this must be shown by checking the appropriate box(es) in the endorsement schedule.

BP 04 71 08 24 – Exclusion – Volunteer Workers as Insureds

Previous to the 08 24 edition, the endorsement title was Exclusion – Volunteer Workers. Initially the endorsement was made available to provide an option for removing volunteer workers as insureds from the businessowners coverage form, BP 00 03. However, when volunteer workers are not insureds, the employer could potentially have non-ownership liability coverage for aircraft, auto and watercraft operated by volunteer workers under the policy. This is because the exclusion for aircraft, auto or watercraft would no longer be applicable to autos not otherwise excluded, when operated by a volunteer worker of the insured. This type of exposure is more appropriately covered by a commercial auto or other specialty coverage, and as such is contrary to the intent of the exclusion. Further, more recent endorsements have been introduced addressing certain liability exposures related to unmanned aircraft.

Due to these circumstances, the endorsement BP 04 71 has been revised in title, and by adding a paragraph to the endorsement so that it can be used when an unmanned aircraft endorsement is also added to the policy. Specifically, a new paragraph A provides that if either BP 15 11 or BP 15 12 is attached to the policy, an exclusion is added with respect to bodily injury or property damage arising out of the ownership, maintenance, use or entrustment to others of any aircraft (other than unmanned aircraft), auto or watercraft operated by any volunteer worker. The exception that applies to this exclusion dealing with parking autos on insured premises is amended to reference autos not owned by or rented or loaned to volunteer workers of the insured.

Paragraph B states that if paragraph A doesn’t apply, exclusion g. will be replaced as described. Specifically, paragraph B addresses the aircraft, auto or watercraft exclusion to indicate that liability arising out of the ownership, maintenance or entrustment to others of such operated by volunteer workers of the insured is excluded. Other editorial changes were made for consistency.

To the extent this newly revised endorsement is attached to a policy where the insured risk included volunteers who operated aircraft, autos or watercraft not owned, rented, or loaned to any insured, this could result in a reduction of coverage. However as previously stated, this type of exposure is more appropriately covered under a commercial auto policy, and this is true regardless of whether or not volunteer workers are insureds.

BP 04 83 01 10 – Removal of Insurance-to-Value Provision

This endorsement deletes requirements that the covered property be maintained at insurance to value with respect to the loss payment condition.If this endorsement is attached to the policy, no insurance-to-value requirements apply to Covered Property.

BP 04 84 08 24 – Functional Building Valuation

The limit of insurance shown in the schedule of BP 04 84 is the only limit of insurance applicable to the building listed in the schedule. If the insured contracts for repair or replacement of the loss or damage to restore the building shown in the schedule for the same occupancy and use, the form pays the smallest of the following: the limit of insurance shown in the schedule; in the event of a total loss, the cost to replace the damaged building on the same site with a less costly building that is functionally equivalent (or on a different site if required by ordinance or law); in the event of a partial loss, the cost to repair or replace the damaged portion of the building with less costly material in the architectural style that existed, if available, and the amount actually spent to demolish and clear the site of the undamaged portions of the building; or the amount actually spent that is necessary to repair or replace the lost or damaged building with less costly material, if available, and to demolish and clear the site of undamaged parts of the building.

The contract for repair or replacement must be made within 180 days of the damage unless the insured and insurer agree otherwise. If claim is not made within 180 days or the agreed upon timeframe, the insurer will pay the smallest of the limit of insurance, the market value of the damaged building, exclusive of land value, or the amount it would have cost to repair or replace the building with less costly material in the architectural style that existed, less allowance for depreciation or physical deterioration.

The endorsement includes the following three coverages under ordinance or law: coverage for loss to the undamaged portion of the building, demolition cost coverage, and cost to reconstruct in compliance with an ordinance or law.

Business income and extra expense optional coverage may be added via the schedule.

BP 04 85 01 10 – Functional Business Personal Property Valuation

This endorsement provides coverage for specifically scheduled item(s) of business personal property which can be replaced with similar property that performs the same function as the property's current use. Coverage is provided on a functional replacement cost basis when repair or replacement is contracted for within 180 days of the loss or damage; or if beyond the 180 days coverage will be based on its market value.

On a market value basis if repair or replacement is not contracted for within 180 days of the loss or damage.

BP 04 86 01 06 – Vacancy Changes

When a policy is issued to the owner or general lessee of a building, the building is deemed vacant unless at least 31 percent of its total square footage is either rented or leased and used to conduct customary operations; and/or it is being used by the owner to conduct customary operations. By attaching this endorsement, the 31% requirement can be reduced to as low as 10%.

BP 04 87 08 24 – Vacancy Permit

This endorsement can be used to extend the vacancy limitations of the standard BOP form for locations described in the endorsement schedule, for the period of the permit shown in the schedule:

The property loss condition for vacancy can be amended to allow coverage for vandalism, sprinkler leakage, building glass breakage, water damage, and theft or attempted theft, for a period permitted beyond the 60 days in the form;

For all other causes of loss, a 15% loss payment penalty will apply for such periods of vacancy that are beyond the 60 days of the permit.

The endorsement is revised in the 08 24 edition to remove reference to condominium commercial unit-owners coverage form, as that coverage form is not available in the ISO businessowners forms portfolio. There is no impact to coverage with this change.

BP 04 88 07 02 – Liquor Liability

This endorsement removes the exclusion for liquor liability under the businessowners coverage form, thus allowing for coverage.

BP 04 89 01 10 – Liquor Liability Coverage

This endorsement adds liquor liability coverage to the businessowners coverage form, at a limit of insurance shown in the schedule for each common cause and an aggregate limit.

Endorsement BP 04 89 applies to all bodily injury or property damage arising out of the selling, serving, or furnishing of alcoholic beverages. Exclusions are added for bodily injury or property damage arising out of any alcoholic beverage sold, served, or furnished while any required license is not in effect; bodily injury or property damage arising out of "your product"; bodily injury or property damage with respect to which other insurance is afforded, or would be afforded but for the limits being exhausted.

The liquor liability/aggregate endorsement is the most that will be paid for all bodily injury and property damage as the result of the selling, serving, or furnishing of alcoholic beverages.

BP 04 90 01 06 – Pollution Exclusion – Limited Exception for a Short-Term Pollution Event

This endorsement provides limited liability coverage arising out of the release of pollutants, from an insured's premises or at a contractor's job site. The event must begin and end within 48 hours.

BP 04 91 01 06 – Pollution Exclusion – Limited Excerption for Designated Pollutant(s)

This endorsement provides limited pollution liability coverage arising out of the release of a specific pollutant as shown in the schedule. Such pollutant must be one that is used either as a part of the insured's operations, or from an insured's premises, or at a contractor's job site.

BP 04 92 07 02 – Total Pollution Exclusion

This endorsement excludes all pollution exposures of any type without exception.

BP 04 93 01 06 – Total Pollution Exclusion With a Building Heating Equipment Exception and a Hostile Fire Exception

This endorsement replaces the pollution exclusion with a total pollution exclusion, but contains two exceptions for coverage. The first is an exception providing coverage for bodily injury arising out of smoke, fumes, vapor or soot from equipment used to heat that building; and the second exception provides coverage for liability arising out of heat, smoke or fumes from a hostile fire.

BP 04 94 01 06 – Limited Pollution Liability Extension

This endorsement provides limited pollution coverage at a separate aggregate limit as shown in the schedule of the endorsement.

BP 04 97 08 24 – Waiver of Transfer of Rights of Recovery Against Others To Us (Waiver of Subrogation)

This endorsement, commonly referred to as a waiver of subrogation, provides that the company's right to subrogation against persons or organizations as shown in the schedule may be waived under certain circumstances, prior to a loss.

ISO has been made aware that named insureds often enter into contracts wherein the named insured agrees to waive its right of recovery against other parties, usually "upstream" parties, for example property owners, lessors, or managers, suppliers or vendors. In some instances the named insured may not have a written contract with the other party against whom the named insured is waiving its right of recovery. The 08 24 edition of the endorsement has been revised in several aspects to provide increased flexibility to address these situations.

The provisions expressly addressing the named insured’s ongoing operations or work done under contract has been removed to accommodate various situations where the insured has agreed to waive its right of recovery. A provision has been added that restricts the waived right of recovery only to the extent that the insured’s waiver occurred prior to loss. This is a reinforcement of the first paragraph of the Transfer of Rights of Recovery Against Others To Us Condition applicable to the businessowners liability coverage. The title has been amended to add the words, “Waiver of Subrogation”. Other changes are editorial in nature. There is no coverage impact to the changes.

BP 04 98 07 13 – Employee Benefits Liability Coverage

This endorsement adds coverage for employee benefits liability. Endorsement BP 04 98 will pay sums the insured becomes legally obligated to pay as damaged because of any act, error, or omission of the insured or any other person for whose acts the insured is legally liable. The insurance applies only if the act, error, or omission is negligently committed in the administration of the insured's employee benefit program, did not take place before the retroactive date or end of the policy period, and a claim for damages is first made against the insured during the policy period or extended policy period.

The insurance does not apply to the following: dishonest, fraudulent, criminal, or malicious acts; bodily injury, property damage, or personal and advertising injury; failure to perform a contract; insufficiency of funds; inadequacy of performance of investment/advice given with respect to participation; failure to comply with workers compensation and similar laws; damages because of liability imposed by ERISA; claims to available benefits; taxes, fines, or penalties; and damages arising out of employment-related practices.

BP 04 99 07 13 –Extended Reporting Period for Employee Benefits Liability Coverage

This endorsement may be added to provide an extended reporting period for employee benefits liability coverage provided by BP 04 98. Endorsement BP 04 99 provides an extended reporting period with an applicable extended reporting period aggregate limit. For employee benefits liability coverage, the aggregate limit is the most that will be paid for all damages because of acts, errors, or omissions negligently committed in the administration of the insured's employee benefits program. The aggregate limit does not apply to claims first received and recorded during the extending reporting period. The employee benefits liability insurance is excess over any other insurance whose policy period begins or continues after the extended reporting period takes effect.

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