THURSDAY, JULY 15, 2021
Adding a business owners policy (BOP) to protect your business is an important choice that can safeguard your assets against several losses. However, most basic BOPs have common exclusions when it comes to coverage, which is why it is important to ask about additional coverage options. 
BOPs usually come with three standard types of coverage.
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Property Insurance covers the business’ physical property in case of an accident due to fire, wind, hail, lightning, smoke, theft and more.
Yet, standard BOPs often don’t contain other elements of protection. So, don’t think of your BOP as comprehensive right off the bat. You’ll probably need additional coverage to properly insure your business.
Adding Coverage to the BOP
Some BOPs come with the option to add protection. This is different from increasing your coverage limits. It means adding additional elements of protection to your policy. Some coverages you may consider adding include:
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Cyber Liability Insurance. This protection can help you in the event a data breach or cyber theft exposes customer data. You can use coverage to help customers fight potential problems, like identity theft. It might also help you pay certain legal fees.
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Professional Liability Insurance. Also called Errors & Omissions protection, this coverage helps if your professional mistakes cause financial harm to customers. These customers will likely hold you responsible for bad professional advice. If that happens, your policy can kick in to help you.
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Directors and Officers Liability Insurance. Directors and Officers liability insurance covers claims against your business’ key managers and employees regarding their activity under your employment.
Other protection options you might be able to add include Employment Practices Liability Insurance, Inland Marine Insurance or Mechanical Breakdown Coverage. Still, there is no guarantee that you can receive these coverage elements by adding them to your BOP. At times, you might have to get separate insurance policies.
Some policies may have to be purchased separately such as a workers compensation policy or commercial auto insurance. Every business is different, so be sure to speak with an insurance agent about protecting your business with additional coverage suited for your business’ location, industry, size and more. Also ask about ways your business owners policy can save you money even when you add protection.
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