What is the coverage limit for medical payments under BOP liability?

The correct answer, which states that the coverage limit for medical payments under Businessowners Policy (BOP) liability is $5,000 per person, reflects a standard provision in such policies. Medical payments are designed to cover medical expenses that arise from injuries sustained on the business premises or due to the business operations, regardless of the fault of the insured.

This limit is established to provide a reasonable amount of coverage that addresses immediate medical needs without the lengthy process of establishing liability. The inclusion of this type of coverage enhances the policy's appeal by helping businesses manage the financial consequences of accidental injuries.

While options like $3,000, $7,500, or $10,000 may represent varying limits that could apply in different contexts or types of policies, the established and commonly accepted limit under BOP for medical payments is indeed $5,000 per person. This amount strikes a balance between providing sufficient aid for medical costs while keeping premiums manageable for business owners. Thus, understanding these coverage specifics is essential for anyone involved in handling or adjusting insurance claims within a business context.