What is the limit for accounts receivable coverage under BOP extensions?

Accounts receivable coverage under Businessowners Policy (BOP) extensions typically provides protection for the loss of accounts receivable due to various factors such as theft or damage to records. The limit for this coverage is commonly set at $10,000. This amount is significant because it offers a balance between providing adequate coverage for small to medium-sized businesses that may have outstanding receivables while also being manageable for insurance providers. The limit allows businesses to recover some of the financial impact if they experience a loss of records that leads to an inability to collect payments from customers. Understanding this coverage limit is crucial for businesses to ensure they have sufficient protection for their financial interests, as accounts receivable can be a significant part of cash flow for many operations.