Your business owners policy (BOP) helps protect the basics of your business: property damage, business interruption, and general liability. That’s a good starting point but it’s not enough for most companies.
Here are things your BOP doesn’t cover and what coverage you need to protect your business.
Driving for Business Purposes
Any driving you do for the business isn’t covered under your BOP. It’s also not covered under your personal auto insurance. Buying supplies, traveling to meetings, or making deliveries – you’re driving more than you realize for your company. If you get into an auto accident during these times, the only protection you can count on is a commercial auto insurance policy.
You were hired for your experience and knowledge but no one is perfect. Mistakes can be costly for your clients. In service-based businesses, it’s important to understand the damage that an “oops!” moment can cause. A client could sue you for damages if the error costs them money or their reputation. You need professional liability insurance to protect yourself and your business.
Nearly every business operates on the internet in some way. Maybe you take orders and payment information online. Maybe clients or patients share their personal information using a form on your website. The computers you use internally house all kinds of information about customers, vendors, patients, and employees. All of this data is your responsibility and it can easily be stolen. When it happens, as the owner, you’re responsible for damages. The best protection you can purchase is a cyber liability insurance policy.
The moment you hire your first employee, you’re required by law to provide certain protections. If your employee gets hurt or becomes ill on the job or the worst happens, and they die, you’re responsible for the medical expenses and any death benefits owed to the family. Workers’ compensation is not something you can ignore. But it’s also not part of your BOP, so be ready to purchase a policy when you hire that first person.
Want to offer health or life insurance for your employees – or just yourself? Your business owners’ policy can’t help you. You’ll need to purchase health and life insurance outside of your BOP. And yes, your independent insurance agent can help you with this type of coverage as easily as they can help you with commercial auto or workers’ comp coverage. You don’t need to find a separate agent or do it all yourself.
Big Liability Claims
When you purchase insurance coverage, through your BOP or some other coverage, you choose a policy limit that makes sense for your business. But what happens when you have a once-in-a-lifetime accident or liability claim? The kind that exceeds your policy? The only way to avoid paying out of pocket is to make sure you have a commercial umbrella policy. It’s designed to give you extra protection when you need it most.
A business owner’s policy is an important first step to protect your company. But it’s not enough to cover everything you might face as a business owner. That’s why it’s important to build a policy that offers protection for the unique needs of your business.
Here at Charlotte Insurance we can help you figure out the kind of insurance coverage your business needs and help you find policies to fit your budget. Contact us today to learn more.