Business Ownerʼs Insurance

A BOP works in most situations where a business has typical insurance needs. Besides the convenience of consolidated billing and having a single contact for claims and the coordination of benefits, a BOP eliminates the potential for coverage gaps or overlapping coverage that can occur when multiple policies are utilized. 

Two common forms of business insurance that are included in a Business Ownerʼs Policy:

General liability insurance protects a business from claims related to bodily injury, property damage or reputational harm caused to others. A general liability policy pays for:

• Medical expenses, lost wages, and other damages if a person is injured on the business premises or by the business's products or services.
• Damage to the property others caused by employees in the course of their work.
• Personal injuries such as libel, slander or other reputational harm to others caused by the business.
• Claims related to false advertising or infringing on the intellectual property of other businesses or individuals.
• Attorney's fees, courts costs, and judgments or settlements if a legal action is involved.

Commercial property insurance protects a business's physical assets such as buildings, equipment, furniture, and inventory against damage or loss due to various perils, including fire, explosions, burst pipes, severe weather, theft, and vandalism.

This form of insurance covers buildings that are owned or leased, including exterior elements such as signage or fences. It also covers operating expenses and/or loss of income if the business is forced to temporarily close due to a covered loss.

Commercial property insurance does not cover losses from:

• Wear and tear, which is damage caused by normal aging or deterioration of a property or asset.
• Earthquakes and floods unless specifically added as an endorsement to the policy.
• Acts of war, nuclear disasters, or events resulting from government actions. 

Commercial auto provides coverage for vehicles owned by the business and used in any capacity. This could include cars provided to company executives or salespeople, delivery vehicles, or vans, trucks and trailers used in the provision of services to customers. 

The coverage provides liability protection for bodily injury and damage to vehicles and property caused by an accident. The policy also includes coverage damages or injuries caused by uninsured or underinsured motorists.

Commercial auto coverage can extend to rental vehicles and the personal autos used by employees for work purposes through add-on endorsements to the policy.

A required coverage for employers in nearly all states, workers compansation insurance pays for last wages, medical bills and ongoing care when an employee suffers a work-related injury or illness.

Workers compensation laws vary by state, and there are exceptions or exclusions for certains types or sizes of employers. It's important to work with a knowledgeable insurance agent to assure your business is compliant with the laws in states where the business operates.

States with mandatory workers compensation laws often levy significant penatlies for employers who fail to obtain coverage.

A Business Owner's Policy with an additional cyber endorsement may provide limited coverage for cyber incidents, however it's generally insufficient to cover the full range of cyber risks that companies face.

Cyber endorsements to a BOP policy typically exclude or limit protecton for so-called first-party losses — the costs a business incurs from a cyber attack, data breach, or social engineering attack.

A stand-alone cyber policy with first-party and third-party coverage is recommended for any business that stores electronic records, especially if they contain customer personal, health, banking, or financial data.