Hawaii Insurance License Practice Exam

Which of the following coverages is typically not automatically included in a Businessowners Policy (BOP)?

1. Employee dishonesty

2. Property damage

3. General liability

4. Business interruption

The correct answer is: Employee dishonesty

In a Businessowners Policy (BOP), employee dishonesty coverage is typically not automatically included. This coverage specifically addresses losses that occur due to dishonest acts by employees, such as theft or fraud, and usually requires an additional endorsement or rider to be added to the policy for adequate protection. In contrast, the other coverages listed—property damage, general liability, and business interruption—are generally foundational components of a BOP. Property damage provides coverage for physical loss or damage to business property. General liability offers protection against claims of bodily injury or property damage to third parties. Business interruption coverage compensates for loss of income that a business may experience during a period of restoration after a covered loss. These aspects of a BOP are designed to provide a comprehensive package of essential coverages for small to medium-sized businesses.