Under the Businessowners Policy, how will the policy respond if there is other insurance covering the same loss?

The correct response highlights how a Businessowners Policy (BOP) coordinates with other insurance coverage when a loss occurs. A BOP typically includes a provision known as "other insurance," which outlines how claims will be handled in the event that multiple policies provide coverage for the same risk.

When there is other insurance covering the same loss, the BOP will only pay the amount of the covered loss that exceeds what is provided by the other insurance. This means that if the other insurance policy covers a portion of the loss, the BOP will come into play only for the remaining costs that are not covered. This prevents the insured from profiting from the claim by receiving more than the total loss amount, ensuring fairness in the claims process.

In a situation where there is no coordination of benefits, it could lead to overinsurance, or situations where the insured might recover more than what they lost. The approach in option D maintains the principle that insurance is designed to restore the insured to their previous financial position, rather than to provide a windfall.