All of the following statements about the business owners policy are true EXCEPT

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All of the following statements about the business owners policy are true EXCEPT

A) Coverage for business personal property includes coverage for leased personal property which the named insured has a contractual responsibility to insure.
B) The amount of insurance on the buildings increase by a stated percentage each year.
C) Additional coverages include pollutant cleanup and removal
D) The policy must be written with a deductible of at least $2,000 for property losses

Answer: D

Commercial Property Insurance

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay? a) $0 b) $30,000 c) $32,000 d) $40,000 Answer: B

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