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What a Business Policy Covers…and Doesn’t Cover

Apr 6, 2021

A Business Owners Policy (BOP) contains many, but not all coverages a business needs.  The basic BOP provides coverage in three primary areas:

  • Business Liability- covers you if a person is injured on your premises (e.g. a slip and fall), or your product or service leads to an injury or damage to someone’s property.
  • Business Property- covers you if your property (e.g. inventory or business equipment) is damaged from a covered peril (fire, theft, smoke, water, etc…)
  • Business Income- covers you for the lost business income after a covered loss.

A basic BOP policy will not cover the following claim scenarios, unless you add additional coverage:

  • An employee sues you for wrongful termination or harassment
  • A hacker breaks into your employee or client files and steals personal information
  • An employee runs an errand for your business in their personal vehicle and severely injures someone in an accident
  • You are carrying inventory or business tools on your truck and they are damaged in an accident or stolen
  • You offer your professional advice or services and your client sues you stating they did not get the result they expected.

These are just a few of the losses that are not covered by a basic BOP.  We can review your policy with you to determine if you have the coverages you want and need.