Ask Regina

Q. Our BOP carriers are adding endorsement BP 14 78 Exclusion of Loss Due to By-Products of Production or Processing (Rental Properties) to some of our BOP renewals.  What does this endorsement do?regina

A. The endorsement excludes damage to covered premises caused by or resulting from smoke, vapor, gas or any substance released in the course of production or processing operations.

The endorsement is attached to policies of owners and tenants of rental properties. It was added in the 2013 revisions of the BOP and excludes damage to the premises/rental unit, their contents and also to the entire building where the rental units are located.

It was intended to address a problem associated with rental units that were used as meth labs, but would also apply where premises are damaged by residue from commercial cooking operations that might damage a restaurant. Fire loss or explosion from the release of a by-product of the production or processing is covered.

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