Louisiana P&C Adjuster Practice Exam

Which type of business would likely qualify for a Business Owners Policy?

1. A small retail store

2. An insurance agency

3. An apartment building

4. A consulting firm

The correct answer is: An apartment building

A Business Owners Policy (BOP) is specifically designed for small to medium-sized businesses that typically have low risks and can benefit from the combination of property and liability coverage in a single policy. A small retail store fits this description well, as it generally requires coverage for both its business property (inventory, equipment) and liability protection in case of accidents or claims made by customers. In contrast, while the other options may be businesses that could benefit from various types of insurance, they usually have differing risk profiles that might not align with the BOP framework. An insurance agency typically engages in professional services that may require separate professional liability coverage. An apartment building has a different risk structure and usually requires specialized property insurance rather than a BOP. A consulting firm, while it may have some business property, often needs specialized coverage tailored to its services and potential liabilities. Thus, a small retail store is most likely to qualify for a Business Owners Policy given the characteristics and benefits of such coverage.