Debris removal coverage in BOP is limited to what percentage of direct damage loss plus deductible?

Debris removal coverage in BOP is limited to what percentage of direct damage loss plus deductible?

• A. 25%
• B. 10%
• C. 50%
• D. 5%

Answer: (A)

Debris removal coverage in a BOP is set as a percentage of the direct physical loss, and the deductible is added to that amount. The standard limit used is 25%, so you can recover up to 25% of the direct damage loss for debris removal, plus the deductible amount. For example, if direct damage is $80,000 and the deductible is $2,000, the debris removal limit would be $20,000 (25% of $80,000) plus $2,000, totaling $22,000. The other percentages (10%, 50%, or 5%) aren’t the standard debris removal limit in a BOP.

Debris removal coverage in a BOP is set as a percentage of the direct physical loss, and the deductible is added to that amount. The standard limit used is 25%, so you can recover up to 25% of the direct damage loss for debris removal, plus the deductible amount. For example, if direct damage is $80,000 and the deductible is $2,000, the debris removal limit would be $20,000 (25% of $80,000) plus $2,000, totaling $22,000. The other percentages (10%, 50%, or 5%) aren’t the standard debris removal limit in a BOP.