Idaho Property Insurance Practice Test

The correct answer highlights the specific gross sales and square footage limitations set for retail stores covered under a Businessowners Policy (BOP). A BOP typically has guidelines that cater to smaller, low-risk businesses, making it a cost-effective insurance solution.

In this context, the requirement of $3,000,000 in gross sales ensures that the policy remains accessible to retail establishments that do not exceed this financial threshold, which helps contain the risk for insurers. The accompanying square footage limitation of 25,000 square feet further clarifies the types of retail operations that are eligible for this type of coverage. These thresholds are important as they align the coverage scope with the nature of small to mid-sized retail establishments, which is the primary focus of a BOP.

This answer accurately reflects the designed parameters for BOP eligibility, ensuring that insurance is appropriately tailored to the size and scale of retail operations that the policy intends to serve.