Georgia Property & Casualty Practice Exam

What is the coverage limit for loss of valuable papers and records under a business owners policy?

1. $500

2. $1,000

3. $5,000

4. $10,000

The correct answer is: $10,000

The coverage limit for loss of valuable papers and records under a business owner's policy is set at $10,000. This coverage is designed to assist businesses in recovering the costs associated with lost or damaged documents, including important business records and papers that are difficult or impossible to replace. The $10,000 limit reflects a balance between providing a meaningful level of coverage while acknowledging the typical scale of potential losses that a small to medium-sized business might face when dealing with important documentation and records. Having this level of coverage ensures that businesses can mitigate some of the financial impacts that might arise from such a loss. This is particularly important since valuable papers may include legal documents, contracts, or other critical information that are essential for the ongoing operation of the business.