How is property coverage provided under the Businessowners policy?

Property coverage under the Businessowners policy is provided on an open perils basis, which means that it covers all risks of physical damage to property unless specifically excluded in the policy. This approach offers a broader level of protection compared to named perils coverage, where only specified risks are covered.

When a Businessowners policy is endorsed for named perils, it modifies the standard open perils coverage to only cover the risks that are explicitly listed in the policy. However, the primary nature of the coverage remains on an open perils basis unless explicitly stated otherwise. This allows businesses to have extensive protection against a wide variety of property risks, ensuring greater security against unforeseen events.

In summary, the Businessowners policy utilizes open perils coverage as its standard provision for property coverage, making the correct understanding crucial for individuals seeking to navigate and maximize their insurance options in a business context.