Which of the following is NOT a feature of a typical Business Owners Policy?

A typical Business Owners Policy (BOP) is designed to offer a comprehensive package of insurance coverage for small to medium-sized businesses. Among its features, it includes business income coverage, which helps cover lost income during a period of restoration following a covered loss, liability coverage that protects against claims for bodily injury and property damage, and property coverage that safeguards the business’s physical assets.

However, the common characteristic of a BOP is that it typically uses Replacement Cost Valuation rather than Actual Cost Valuation. Replacement Cost Valuation means that in the event of a loss, the insurer will pay the cost to replace the damaged or lost property without deducting for depreciation. This feature is critical for business owners as it ensures they can repair or replace their assets to restore their business fully. Actual Cost Valuation, on the other hand, deducts depreciation and may result in lower payouts, which is less favorable for business owners seeking to recover fully from a loss. Consequently, citing Actual Cost Valuation as a feature of a standard BOP is not accurate.