We recently talked about the magic that is a business owner’s policy (aka BOP) and how they make insurance wonderfully convenient for businesses. But it’s important to note that there are some things that simply aren’t covered in a business owner’s policy. BOPs (catchy nickname, right?) typically cover general liability, commercial property, and business interruption insurance. However, the risks covered by the three types of insurance bundled into a BOP may not be enough to fully cover your business. There are lots of other disasters out there. To help you ensure that your business is fully insured, we’re going to go over some coverages and losses that aren’t bundled into a BOP.
Coverages that can be purchased as separate policies:
There are some coverages that you would purchase as separate policies for your business. Here are some coverages that you might want (or need) to get for your business.
Workers’ compensation:
Workers’ comp insurance is essential for businesses. It protects your employees if they get hurt or get sick because of their jobs. It can provide them with medical payments so that they can get back on their feet. It also reimburses them for a portion of the wages that they lost while they weren’t able to work if they’re medically approved to take time off. Depending on your business and state, you might be required to carry workers’ comp insurance.
Group health insurance and disability insurance:
These coverages can be procured separately if you want your employees to be able to get health insurance through their jobs.
Professional liability:
Professional liability can help you if you’re in a business where you offer advice and then politely ask for money. If a customer accuses you of negligence, giving bad advice, or not acting in good faith, they might sue you, professional liability insurance can help you cover the costs of the lawsuit.
Coverages that you can add to your BOP:
BOPs can bundle more than general liability, property, and business interruption insurance. There are other types of insurance that can be added to a BOP policy if you so choose. Some of those coverages are…
Crime coverage:
Crime coverage includes protection for a variety of theft that your business could face, including employee theft and commercial burglaries. Usually, you can add between $1,000 and $5,000 of coverage to your policy.
Data breach coverage:
With how dependent businesses are on technology and computers, data breaches are a very real risk. That’s why it’s important to protect your business from cyber risks. Adding data breach coverage to your BOP will help your business with the costs of…
- Telling people who have had their information stolen from your company that their information has been stolen from your company.
- Hiring consultants who can help you sort out the ensuing chaos.
- Defense and settlement costs from potential lawsuits.
- Replacing income that you lost due to the breach.
- Extortion/ransom (Believe it or not, holding computer files or systems hostage and demanding money for their release has become a favorite of hackers, as far-fetched as it may seem. It’s a real thing.)
It’s important to make sure that you understand exactly what your BOP will and won’t cover. If there are any areas of risk that are not included in your BOP, you need to fill your coverage gaps. Disasters have a nasty habit of striking those areas that aren’t protected by insurance. Don’t underestimate the power of Murphy’s Law – whatever can go wrong, will go wrong. You don’t want to fall prey to a loss that isn’t covered, so review your insurance carefully and bolster any areas that are missing coverage.
Do you need to get some business insurance? We’d love to help you out with that! We can help you identify the risks that your business faces and build an insurance plan to protect you from them. We can get you some business insurance quotes for free. All you have to do to get started on your quotes is fill out our online quote form or give us a call today.