West Virginia Property and Casualty Licensing Practice Exam

Which of the following is NOT typically covered by a Basic BOP?

1. Building Property

2. Business Personal Property

3. Liability Coverage

4. Intangible Assets

The correct answer is: Intangible Assets

The correct answer is D, Intangible Assets. A Basic Businessowner’s Policy (BOP) typically includes coverage for tangible assets associated with the business operations, such as Building Property, Business Personal Property, and Liability Coverage. Building Property refers to the physical structure owned or leased by the business and is often covered under a BOP. Business Personal Property encompasses movable assets such as machinery, equipment, and inventory located on the premises or used in the course of business operations, which are also included in a BOP. Liability Coverage protects the business from claims arising from injuries or damages for which the business may be held liable to third parties, a fundamental component of a BOP. In contrast, intangible assets, which may include things such as patents, copyrights, trademarks, or goodwill, do not have a physical presence and are therefore not covered under a Basic BOP. This distinction is crucial for understanding what kinds of assets businesses typically insure through standard property and casualty policies.