Alabama Property and Casualty Practice Exam

Which aspect is NOT a component of the liability coverage provided under a BOP?

1. Personal injury coverage

2. Advertising injury coverage

3. Completed operations coverage

4. Professional liability coverage

The correct answer is: Professional liability coverage

The correct response is that professional liability coverage is not a component of the liability coverage provided under a Businessowners Policy (BOP). A Businessowners Policy typically includes coverage for specific types of liability, such as personal injury coverage, which protects against claims of bodily harm and other non-physical injuries like defamation. Advertising injury coverage is also covered under a BOP, which provides protection against claims arising from advertisements, including copyright infringement and misappropriation of advertising ideas. Completed operations coverage is generally included as part of the liability coverage on a BOP, offering protection for claims arising from services provided or work completed by the business that resulted in injury or property damage after the work was finished. However, professional liability coverage, often known as errors and omissions insurance, is designed specifically for professionals who provide services or advice as part of their occupation. It protects against claims arising from the failures or mistakes related to the professional services provided. Since a BOP is intended for small to medium-sized businesses with general liability needs rather than specialized professions, it does not include professional liability coverage, making this the correct answer.