Georgia Property & Casualty Practice Exam

In terms of personal property coverage under a BOP, what item is not insurable?

1. Office furniture

2. Computer equipment

3. Pet animals

4. Inventory held for sale

The correct answer is: Pet animals

Under a Businessowners Policy (BOP), personal property coverage is designed to protect a variety of items used in the course of business operations. However, certain items are not insurable under this type of coverage, and pet animals fall into this category. Pet animals are typically excluded from coverage because they are considered personal property and valued more for their companionship rather than for their business utility. While businesses may utilize animals in certain operational contexts, such as a bakery with services relating to animal products or a farm, the BOP generally does not extend coverage for pets as they do not constitute business assets. On the other hand, office furniture, computer equipment, and inventory held for sale are all integral to the operation of a business and are thus covered under a BOP. Office furniture is essential for creating a workplace environment, computer equipment is critical for conducting day-to-day operations, and inventory is fundamental to the sales process. These items are considered necessary business assets and are therefore insurable. This distinction is vital for understanding what kinds of items can be claimed under a BOP and which cannot.