Operating a small business typically includes trying to find ways to lower your expenses. But you also have to protect your interests, and the interests of your customers and employees. Insurance is a critical piece of that planning, and a Business Owner’s Policy (BOP) seems like the easy answer. While in some cases it may be, don’t overlook other coverages you may need to have in place.
What’s a BOP, and What Does it Cover?
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.
What if I Have Employees?
If you have employees, you are likely required to have workers’ compensation coverage for them. In Tennessee, if you have five or more employees – one or more in construction – you are required to have work comp insurance. There are certainly exceptions, but it is something you’ll want to review with an agent. Your premium and level of risk for employees will be based on the work they perform – you can read more on how that’s determined here – and also your business’s history.
What About Cyber Coverage?
For example, let’s say you have a business that deals with customer data (as most do now). In today’s market, you need to have cyber liability insurance to protect your customers and your business 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. That all depends on the amount of and way you use your customer data.
Additional Risks?
Does your business deliver goods? Do you have special equipment, work with 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 all-encompassing protection. Make sure you understand your business’ risks and needs and purchase the appropriate coverage to protect your property and interests.
Contact Brandon Patterson at 865.453.1414 or email brandon@ownbyinsurance.com and let him help you determine your risks and understand your coverage options!