How many stories can an office building under a business owners policy have?

In the context of a Business Owners Policy (BOP), the maximum number of stories that an office building can have is determined by underwriting guidelines, which typically base these limits on the construction characteristics of the buildings being insured. A BOP is designed primarily for smaller, low-risk businesses, and it often specifies eligibility criteria regarding the height of structures.

The correct answer indicates that an office building can have up to six stories under such a policy. This limit ensures that businesses are covered while also managing the insurer's risk exposure. Buildings with more than six stories usually present heightened risks that may not fit within the standard terms of a BOP, leading to potential exclusions or the necessity for more specialized (and typically more expensive) coverage options tailored to higher-risk structures.

This focus on maintaining a specific number of stories helps insurers effectively underwrite policies while offering competitive rates for small to medium-sized enterprises. Understanding these limits is crucial for anyone involved in independent adjusting or insurance underwriting, as it impacts client advice and coverage recommendations.