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15.12 Section III – Common Policy Conditions

Cancellation​

The first named insured may cancel the policy at any time by providing the insurer with advance written notice.

The insurer may cancel the policy by providing the first named insured with advance written notice, subject to the policy's required notice provisions.

The insurer may cancel the policy for reasons including, but not limited to:

  • Nonpayment of premium.
  • The building has been unoccupied or vacant for 60 or more consecutive days, unless the vacancy is seasonal or the building is under construction or renovation.
    • A building is considered unoccupied if at least 65% of its rental units or floor area is vacant or unoccupied.
    • Permanent repairs have not begun or been contracted for within 30 days after the initial loss payment.
  • The building is subject to an order to vacate, demolition order, or has been declared unsafe by a governmental authority.
  • Fixed and salvageable items have been removed and are not being replaced.
  • The insured has failed to provide heat, water, sewage, or electricity for 30 or more consecutive days.
  • The insured has failed to pay property taxes that have been overdue for more than 1 year.

Cancellation notice is sent to the first named insured's last known mailing address, and coverage ends on the cancellation date stated in the notice. If the insurer cancels the policy, any unearned premium is refunded on a pro rata basis. If the insured cancels the policy, the unearned premium is refunded on a short-rate basis.

Changes​

Only the first named insured may request policy changes, and any change is valid only with the insurer's consent and a written endorsement issued by the insurer.

Concealment, Misrepresentation, and Fraud​

The policy is void if the insured commits fraud related to the policy or if any insured intentionally conceals or misrepresents a material fact about the policy, their insurable interest in the property, or a claim.

Examination of Your Books and Records​

The insurer may examine and audit the insured's books and records related to the policy during the policy period and for up to 3 years after it ends.

Inspections and Surveys​

The insurer has the right, but not the obligation, to inspect the property, conduct surveys, provide reports, and recommend changes. These inspections are performed only to determine insurability and premium and are not health or safety inspections. They do not guarantee that the property is safe, healthful, or in compliance with applicable laws.

Insurance Under Two or More Coverages​

If two or more coverages apply to the same loss, the insurer will pay no more than the actual amount of the loss or damage.

Liberalization​

If the insurer adopts a policy revision that broadens coverage without an additional premium within 45 days before or during the policy period, the broadened coverage is automatically added to the insured's policy.

Other Insurance​

If other insurance covers the same property or business liability loss, the Businessowners Policy (BOP) provides coverage on an excess basis.

Example

A business has both a Businessowners Policy (BOP) and a separate Equipment Breakdown, Electronic Data Processing (EDP), or Commercial Articles Floater policy. If a covered loss occurs, the other policy pays first, and any coverage provided by the BOP applies only as excess insurance.

Premiums​

The first named insured is responsible for paying the policy premium and will receive any return premium refunded by the insurer.

At each policy renewal, the premium is recalculated using the insurer's current rates and rules. The insured may avoid this recalculation by paying a continuation premium before the policy's anniversary date.

Premium Audit​

If the policy is written with an advance premium, the insurer will perform a premium audit to determine the final premium.

Transfer of Rights of Recovery Against Others to Us​

Subrogation: If the insurer pays a claim, any rights the insured has to recover damages from another party are transferred to the insurer to the extent of the claim payment.

Transfer of Your Rights and Duties Under This Policy​

Transfer of Rights and Duties: The insured may not transfer or assign their rights or duties under the policy without the insurer's written consent. However, if the named insured dies, those rights and duties transfer to the legal representative.