Which of the following is automatically covered under the Businessowners Policy?

The correct answer is that signs attached to the building, with a limit of $1,000, are automatically covered under a Businessowners Policy (BOP). This coverage is specifically included as part of the additional property coverage that a BOP typically offers. The policy provides a streamlined form of insurance for small to medium-sized businesses, which includes various coverage options that are advantageous for business owners.

The inclusion of signs protects business operations from losses or damages that may occur due to a variety of risks such as vandalism, severe weather, or accidents. The specified limit of $1,000 indicates that while there is coverage, it is capped to encourage proper risk management and to limit exposure for the insurer.

In contrast, inventory of merchandise is usually covered under the general property coverage of a BOP, but it is not considered "automatically" specified in the same way as signs. Business vehicles are typically insured under a different policy known as a Business Auto Policy rather than a BOP. Additionally, personal property of employees is not covered under a BOP as this type of insurance is mainly focused on the business's own properties and exposures. Thus, understanding these distinctions clarifies why signs attached to the building fit the criteria for automatic coverage under a Businessowners