What is the maximum number of stories for an office building to qualify for a Businessowners Policy (BOP)?

The correct answer is that an office building must not exceed six stories to qualify for a Businessowners Policy (BOP). BOPs are designed for small to medium-sized businesses and come with specific eligibility requirements, including limits on the size and type of the insured property.

The limitation on the number of stories is important because as buildings increase in height, they often present higher risks related to safety, evacuation, and structural integrity, which may exceed the appetite of insurance companies for less complex policies like a BOP. Policies designed for larger commercial risks generally offer broader coverage options at a higher cost, which is why the BOP is restricted to buildings of six stories or fewer.

This policy feature ensures that BOP remains accessible and appropriately tailored for its target market, which includes smaller office buildings and establishments, thus helping mitigate risks effectively while providing competitive coverage.