Product Update

Businessowners Policy—Mandatory Endorsement for Contractors Discussed in Construction Risk Management


This release of Construction Risk Management contains an overview of the standard contractors installation, tools, and equipment endorsement that is mandatory for any businessowners policy (BOP) issued to a contractor.

The Insurance Services Office, Inc. (ISO), BOP is a package policy that provides property and liability insurance to small businesses. Its use is restricted to businesses that meet the BOP eligibility criteria, which includes a fairly broad spectrum of trade contractors. ISO rules stipulate that all BOPs issued to contractors are to include the Contractors' Installation, Tools and Equipment Coverage (BP 07 01) endorsement, which replaces the property coverage that would otherwise apply to tools and equipment under the businessowners coverage form. The most recent update of this endorsement included changes with regards to coverage limits for various types of property, application of the deductible, and the scope of coverage for flood and earthquake.