As a small business owner, you want to keep your expenses as simple – and as low – as possible
But you also want to make sure you have the right things in place to succeed. Insurance is a key part of that planning, and a business owners policy (BOP) seems like the solution. While in some cases it may be, don’t overlook other coverages you may need to have in place.
What is a Business Owner’s Policy?
A BOP typically provides your business with coverage for liability and property and may also provide you coverage if your business is forced to shut down because of a covered loss. So claims like lawsuits against your business; damages to property, inventory, or equipment; and business interruptions are all things you may be covered for if you have a BOP in place. But there are other potential claims you may face depending on what goods or services your business provides.
What About Cyber Coverage?
For example, let’s say you have a business that deals with customer data (as most do now). In today’s climate, you need to have cyber liability insurance to protect yourself in the event of a data breach – and your BOP may not have coverage for that. If your BOP does offer coverage for cyber liability or data breach, it may not be enough coverage. That all depends on the amount and the use of your customer data.
If you have employees, you are likely required to have workers’ compensation coverage for them. There are certainly exceptions, but it is something you’ll want to review with an agent. Your premium and level of risk for employees will be based on their job’s tasks – you can read more on how that’s determined here – and also your business’s history.
Does your business make deliveries or have vehicles? Do you work with special equipment, expensive technology, or rely heavily on suppliers? There are many factors that can impact your small business, and it is important to discuss them with an agent. Then you can determine if there are additional coverages you may not have considered.
And of course, because no one can think of everything, every business owner should consider an Excess Liability Umbrella policy.
The bottom line is, a BOP is a great start for many small businesses’ insurance – but it’s not the be-all, end-all. Make sure you understand your business’ risks and needs and purchase the appropriate coverage to protect yourself. And that’s where we come in! Let one of our agents help your business get the protection it needs.