Which type of risk is eligible for coverage under a businessowners policy?

A businessowners policy (BOP) is designed to provide coverage for small to medium-sized businesses, but not all types of properties or risks are eligible. Coverage under a BOP typically includes properties that are used for commercial purposes and that meet specific criteria outlined by insurance providers.

Among the options given, condominiums are suitable for coverage under a businessowners policy when they are used for business purposes, such as office spaces or retail units within a larger building. This is because a BOP covers various liability and property risks for businesses operating in these types of environments, as long as they do not exceed certain thresholds in terms of revenue or square footage, and the activities conducted are within acceptable limits.

In contrast, single-family homes and farm properties generally do not qualify for coverage under a BOP since they do not align with the policy's intended purpose of insuring commercial risks. Similarly, commercial garages might fall under a different type of insurance tailored specifically for automotive businesses rather than a standard BOP. Thus, condominiums used for business purposes represent the correct choice for eligibility under a businessowners policy.