Major Changes to the 2025 ISO Businessowners Program

Major Coverage Form Changes

The new businessowners coverage form incorporates changes that were previously made in monoline programs such as commercial property, commercial general liability, and commercial crime portfolio. While some changes are minor, others have a significant impact on coverage. Here are some of the most notable changes.

Motor vehicle registration no longer a determinant of motor vehicle or mobile equipment definition. The exception for mobile equipment has been broadened to include vehicles that are not subject to motor vehicle insurance law but are subject to motor vehicle registration, such as an ATV, snowmobile, or other off-road use vehicle.
Coverage radius increased. For a variety of property coverage provisions, the coverage radius has been increased from 100 feet to 1,000 feet from the described premises.
Contractual liability. The definition of "insured contract" now excludes agreements where the insured assumes tort liability of another party in jurisdictions where it is prohibited by law, such as an anti-indemnity statute.
Ransomware loss excluded. The additional coverages for electronic data and interruption of computer operations now exclude loss arising from ransomware.

Key New and Revised Endorsements

The program introduces 59 brand new and 55 updated endorsements to address a wide range of emerging risks.

Noteworthy New Endorsements

Limited coverage for unmanned aircraft. This endorsement adds property coverage for direct physical loss of or damage to unmanned aircraft (drones).
Cannabis property coverage. This endorsement provides specific coverage for cannabis stock and business income related to cannabis operations.
Additional insured—automatic status. Several new endorsements automatically grant additional insured status to another party if a written contract or agreement with the named insured requires it.
Exclusion—all hazards in connection with an electronic smoking device. This endorsement precludes coverage for bodily injury, property damage, or personal and advertising injury related to electronic smoking devices and their components.
Auto service risks. This endorsement expands coverage to better address the unique exposures of auto service businesses.

Noteworthy Revised Endorsements

Protective safeguards. New conditions in this endorsement require the insured to maintain the protective safeguards in complete working order, notify the insurer of any suspension, and ensure any automatic systems are activated.
Ordinance or law coverage. This endorsement now includes a postloss ordinance or law option, which means coverage can apply even if the relevant ordinance or law is put into effect after a loss but before reconstruction begins.
Exclusion—volunteer workers as insureds. This endorsement was revised with a new exclusion for volunteer workers operating aircraft, autos, and watercraft, as they do not qualify as "insureds" under this endorsement.
Waiver of transfer of rights of recovery against others to us (waiver of subrogation). The language in this endorsement was broadened to accommodate a wider variety of situations where the insured has agreed to waive subrogation.

Revised Classifications

The update to the businessowners program also includes a major restructuring of several business classifications.

Auto service risks. This is a new category that includes businesses like auto body shops, car washes, tire dealers, and quick lube shops.
Contractors. The contractor classification has been expanded to include new types of services such as cleaning services, handypersons, and swimming pool cleaning or maintenance.
Restaurants. The restaurant classification was restructured to account for different categories of restaurant types: full service (previously casual dining), quick service (previously fast food), and a new category for specialty restaurants.