BOP Endorsem*nts and Additional Coverages
Your average BOP includes the package of general liability, property, and business interruption insurance. However, businesses can also add to and customize their existing BOPs to meet their individual business needs. Here are some examples of potential add-ons for a business owner’s policy:
Professional Liability Insurance
Professional liability insurance, not to be confused with general liability insurance, is an important add-on to consider for your BOP. General liability covers your business against lawsuits and legal issues, while professional liability insurance protects you from the financial burdens of professional mistakes.
For example, professional liability insurance for accounting firms is extremely important. If an employee makes a major mistake on a client’s tax return that causes them to be fined by the IRS, professional liability insurance can protect you.
Workers Compensation Insurance
If your business has employees, you’ll likely be required to have Worker’s Comp Insurance. In fact, the only state that doesn’t require businesses to have this coverage is Texas. This BOP add-on ensures that your company is able to compensate your employees in the case of a work-related injury or illness.
Commercial Auto Insurance
If your business owns or leases company vehicles, it is incredibly important to include commercial auto insurance in your BOP. Commercial auto insurance covers the cost of a vehicular accident when someone in your company is at fault.
Cyber Liability Insurance
Cyber attacks and data breaches have unfortunately only become more and more common in recent years, so the need for increased cyber security and insurance has also increased. A data breach or cyber insurance covers your company for many different possible costs that you may accrue when recovering from a cyber attack. This can include legal services, remediation, and issuing refunds.
Employee Theft
While certainly one of the last things you may expect someone within your company to do, employee theft is a harsh reality for many businesses. If an employee steals company property commercial crime insurance will cover any financial losses.
Spoilage
Spoilage insurance covers the cost of replacing perishable inventory that has gone bad due to a malfunction or issue with utilities, such as a power outage.
These are just a few examples of endorsem*nts (or riders) that you can add to your BOP, depending on business needs. Keep in mind that the price of your BOP increases with every additional endorsem*nt.
Inland Marine Insurance
If your business frequently ships and transports products by land (trucks, vans, or trains), you should consider inland marine insurance, which covers losses from cargo, equipment, and materials in land transport-related issues.
