Under the Businessowner Policy (BOP), what is the insurer's obligation after a loss when other insurance is written on the same basis?

Under the Businessowners Policy (BOP), the insurer's obligation after a loss when other insurance is written on the same basis is to pay only after the other insurance coverage is exhausted. This principle is commonly referred to as the "excess" coverage provision.

When there are multiple insurance policies that cover the same loss, insurers typically coordinate coverage to prevent overlapping payments. In the case of the BOP, if another policy that covers the same loss exists, the BOP will act as an excess insurer. This means that it will not contribute to the loss until the limits of the other insurance policy have been fully utilized.

This approach helps manage the overall risk for the insurance company and ensures that the insured does not receive more than the actual loss through overlapping coverages. Therefore, the correct answer highlights that the BOP provides coverage only after any other similar insurance policies are exhausted, reinforcing the concept of liability sharing among insurers.