The American Association of Insurance Services (AAIS) recently filed updated eligibility criteria, endorsements, loss costs, and rating procedures for its Businessowners Program (BOP). To date, the filing has been submitted in 46 states and approved in 26, with more approvals pending, according to the advisory organization.
AAIS provides policy forms, manual rules, rating information, and automation support for personal, commercial, agricultural, and inland marine insurance programs used by more than 700 carriers throughout the U.S.
The latest AAIS Businessowners filing includes, among other things:
- An update of rate levels, along with streamlined procedures for rating property and liability coverages separately, in conformance with prevailing industry practice;
- Expanded eligibility for hospitality establishments plus refined classes of office risks;
- Options for addressing wind and hail losses, including a “cosmetic damage” exclusion for roofing materials, actual cash valuation (ACV) option for roofing materials, and an optional exclusion for wind and hail losses;
- Exclusions for liability coverage for bodily injury, property damage, and/or personal and advertising injury arising from data breaches;
- Refined and expanded professional liability coverage endorsements for pharmacists, hair stylists, and other professions; and
- A new formulation of debris removal coverage to address, among other things, debris from a neighboring location.
Leslie Rippley, AAIS vice president of commercial lines, said the organization thinks the changes provide carriers writing BOPs with a “compelling” alternative.
“Small businesses are an important commercial segment, and growing with our country’s economic rebound,” Rippley said. “These changes provide carriers with a product base to grow their small business books effectively and profitably.
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