The California Fair Plan sent an email to registered brokers announcing that effective May 1, 2022, the maximum coverage limits for both Commercial and Businessowner (BOP) policies are being increased.
For Commercial policies, the maximum limit for building coverage will be increased from $3 million to $5.6 million, and the maximum limit for all other coverages will be increased from $1.5 million to $2.8 million. This represents a new, combined limit of $8.4 million in total insurable value at a single location for Commercial policies.
For BOP policies, the maximum limit for building coverage will be increased from $2 million to $4 million, and the maximum limit for business personal property will be increased from $1 million to $2 million. This represents a new, combined limit of $6 million in total insurable value at a single location for BOP policies.
Additionally, businessowners may now choose between two options for liability coverage on BOP: 1) the current limits of $300,000 per occurrence and $600,000 aggregate, or 2) for an additional premium, the newly introduced increased limits of $600,000 per occurrence and $1.2 million aggregate.
These higher limits will be available for all new business and renewal policies with an effective date of May 1, 2022, or later.
There are no additional underwriting requirements for these increased limits. These higher limits are being made available in response to customer requests for FAIR Plan coverage of higher value commercial properties.
For more information please contact us at 909-606-9175.