What is the limit for business property in storage under BOP extensions?

Under the Businessowners Policy (BOP), there are specific extensions related to the coverage for business personal property, including property that is temporarily stored elsewhere. The correct limit for business property in storage recognizes the need for coverage when assets are moved away from the primary location but not indefinitely.

The limit of $10,000 for a duration of 90 days effectively addresses the risks associated with property that is temporarily stored. It reflects the understanding that businesses may need to store property, whether for logistical purposes, during transitions, or as part of their operational needs. This coverage also includes some flexibility, allowing for a reasonable period that acknowledges the nature of business operations without overly complicating the policy framework.

Understanding this limit is critical for insurance professionals, as many businesses may not realize the extent of their coverage when their property is not kept on-site. Being aware of this detail helps in advising clients accurately about their insurance needs and ensuring adequate protection of their assets during storage.