To be eligible for coverage under a businessowners policy, which limitation must an office building meet?

The eligibility for coverage under a businessowners policy (BOP) includes several specific criteria that help to define the type of risks and businesses that can be insured under this policy. One of the criteria regarding the physical characteristics of the office building is related to its height. An office building must not exceed six stories to qualify for coverage under a BOP. This limitation is in place to manage the risks associated with larger structures, as taller buildings often present more significant risks in terms of safety, structural integrity, and overall maintenance.

If the building exceeds this height limitation, it may be considered too complex or high-risk for a standard BOP, which is designed primarily for small to medium-sized businesses. Thus, restricting the coverage to buildings under six stories helps the insurer control exposure to loss and maintain a manageable risk profile.

The other considerations, such as whether the building has seasonal operations, contains apartments, or specific sales thresholds from off-premises operations, while important in determining eligibility under different circumstances, do not hold the same foundational rule concerning structural height as being under six stories does. Thus, the height limitation is a key factor in determining an office building's eligibility for a businessowners policy.