As a small business owner, you want to keep your expenses as efficient – and frankly, as low – as possible. But you also want to make sure you have the right planning for your future. Insurance is a key part of that planning, and a business owners policy (BOP) seems like an easy solution. There are cases where it may be the best option, but don't overlook other coverages you may need for additional risks.

What is Typically Covered by a BOP? A BOP typically provides your business with coverage for liability and property and may also provide you coverage if your business is forced to shutdown 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.

1. Cyber Liability Exposures For example, let's say you have a business that deals with customer data (as almost all businesses do now). In today's world, 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 to actually help you if an incident occurs. That all depends on the amount and the use of your customer data.

2. Protecting Your Employees If your business has employees, you are likely required by law to have workers' compensation insurance. This policy can help cover medical expenses and lost wages for employees who are injured or become ill due to their job. While a BOP provides general liability coverage, it does not include workers' compensation. Failing to have this mandatory coverage can result in hefty fines and legal repercussions.

3. Professional Liability Concerns If your business provides professional services or advice, you may be at risk for claims of negligence, errors, or omissions. Professional liability insurance, also known as errors and omissions (E&O) insurance, protects your business from legal claims arising from professional mistakes or failures to deliver services as promised.

4. Commercial Auto Risks Does your business make deliveries or have vehicles? You don’t need to have a “fleet” of vehicles to have commercial auto risks. If you and/or your employees use your vehicles for business tasks, there may be risks that aren’t covered by a BOP. It is best to explain the vehicle uses of your business to your agent and determine what might be needed.

5. Risks Specific to Your Business 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.

A BOP is a great start for many small businesses’ insurance – but it's not the all-covering policy that some may believe. Make sure you understand your business's risks and needs and purchase the appropriate coverage to protect yourself. Let one of our agents help your business understand the risks and help you get the protection you may need.