Question 62

Insured property can be covered anywhere in the world

A Businessowners Policy does not provide coverage for insured property located outside of the specified geographic limits, which typically confines coverage to the United States and its territories.

A) The standard deductible is $500 but can be raised to $2500

This statement is true as the standard deductible for a Businessowners Policy often begins at $500 and can indeed be adjusted to a higher amount, such as $2500, depending on the policyholder's preferences and risk management strategies.

B) Insured property can be covered anywhere in the world

This statement is false because a Businessowners Policy generally limits coverage to the property located within the United States, its territories, and sometimes Canada. Coverage outside of this area is typically excluded unless specifically endorsed.

C) Property is covered on an Open Perils basis

This statement is correct as Businessowners Policies generally provide coverage on an Open Perils basis, meaning that all risks are covered unless specifically excluded in the policy terms.

D) Completed additions to the business building are covered

This statement is also true. Completed additions to a business building are covered under a Businessowners Policy, reflecting the policy's intention to protect all aspects of the insured property as long as they are completed and properly reported.

Conclusion

The correct answer is B because it inaccurately represents the geographic limitations of coverage under a Businessowners Policy. Options A, C, and D are all true statements regarding the coverage provided, making them consistent with the standard provisions of such policies. Therefore, B is the only choice that misrepresents the nature of coverage offered.