What qualifications must processing and service businesses meet to be eligible for a Business Owner's Policy?

For a Business Owner's Policy (BOP), one of the key eligibility requirements is related to the scale of the business, which includes criteria for annual sales and the nature of its operations. The correct answer focuses on stipulating that the business must have annual sales under $3 million, which helps ensure that the policy is tailored for smaller businesses that are considered low-risk for insurance providers.

Additionally, stating that no more than 25% of sales can occur off-premises emphasizes the importance of stability and control over the business operations. Businesses that primarily operate from a fixed location, with limited off-premises activities, are generally seen as more manageable and less risky for insurers. This constraint fundamentally aligns with the intent of BOPs, which are designed to cover small to medium-sized businesses that maintain a certain level of risk exposure.

The other choices do not accurately represent the eligibility criteria for a BOP. For example, the specifications about floor space or the number of stories may not directly relate to the criteria that define a business's eligibility for a BOP as sharply as the financial metrics and sales structure that option C presents. Therefore, option C aligns thoroughly with the guidelines set forth for BOP eligibility, making it the correct answer.