Which of the following is true about the BOP Special Form?

The BOP (Businessowners Policy) Special Form is designed to provide comprehensive coverage for businesses, and one of its key features is that it can be written on a replacement cost basis. This means that in the event of a covered loss, the policy will pay for the replacement value of damaged property without taking depreciation into account. This is particularly beneficial for business owners as it ensures that they can fully restore their property to its pre-loss condition without incurring additional costs due to depreciation.

The other options present limitations or inaccuracies about the BOP Special Form. For instance, while coinsurance clauses are common in property insurance, the BOP can include these clauses depending on the specific terms of the policy, but it does not inherently prohibit them. While the BOP is typically geared towards small to medium-sized businesses, it is not strictly limited to that category. Additionally, the BOP does cover liability, meaning it provides protection against claims for bodily injury and property damage claims made by third parties, rather than solely focusing on property damage. Thus, option C accurately reflects the advantages of the BOP Special Form in terms of replacement cost coverage.