Which statement correctly describes a limit of coverage in BOP liability?

Which statement correctly describes a limit of coverage in BOP liability?

• A. The per occurrence limit applies to bodily injury, property damage, and medical expenses, with options including $300,000; $500,000; $1,000,000; or $2,000,000.
• B. There is no per occurrence limit in BOP liability.
• C. Medical expenses have no separate limit.
• D. There is a single combined limit for all coverages.

Answer: (A)

In BOP liability, the key idea is that there is a per-occurrence limit that caps the insurer’s payments for a single incident. That same limit applies to bodily injury, property damage, and medical expenses arising from that incident. The statement that the per-occurrence limit covers bodily injury, property damage, and medical expenses—and that the limit can be set at amounts like $300,000, $500,000, $1,000,000, or $2,000,000—best describes how the coverage is structured. The other options are inconsistent with how BOP liability is typically written: there is a per-occurrence limit, medical expenses aren’t left without a limit, and liability isn't described as a single combined limit for all coverages.

In BOP liability, the key idea is that there is a per-occurrence limit that caps the insurer’s payments for a single incident. That same limit applies to bodily injury, property damage, and medical expenses arising from that incident. The statement that the per-occurrence limit covers bodily injury, property damage, and medical expenses—and that the limit can be set at amounts like $300,000, $500,000, $1,000,000, or $2,000,000—best describes how the coverage is structured.

The other options are inconsistent with how BOP liability is typically written: there is a per-occurrence limit, medical expenses aren’t left without a limit, and liability isn't described as a single combined limit for all coverages.