Running a small business comes with challenges, and securing the right insurance coverage is crucial for protecting your venture from unforeseen risks. Many entrepreneurs opt for business owners policies (BOPs) to streamline their insurance needs, but it’s essential to understand that not everything falls under the umbrella of these policies.
What Does a BOP Exclude?
The following are some standard exclusions that small businesses should be aware of when it comes to BOPs: 
- Professional services—One of the primary exclusions in many BOPs is coverage for professional services. Businesses that provide consulting, legal, accounting or other professional services may find that their BOPs do not adequately protect them against claims arising from errors or omissions in their work. Businesses in these fields often need to consider adding professional liability insurance to their coverage portfolio to address this gap.
- Cyber risks—In the digital age, cyber threats are on the rise, and small businesses are not immune. Surprisingly, many BOPs exclude coverage for cyber risks, such as data breaches and cyberattacks. Given the increasing frequency and sophistication of cyber threats, businesses should explore standalone cyber insurance policies to safeguard their digital assets and customer information.
- Vehicles— While BOPs typically cover the business’s physical location, they often exclude vehicle coverage. Acquiring a distinct commercial auto insurance policy might be necessary if your business utilizes vehicles for its operations, such as delivery trucks or company cars. This ensures you are protected in case of accidents, damage or liability related to your business vehicles.
- Health hazards—Certain industries expose employees to health hazards, and BOPs may not provide adequate coverage for workplace injuries or illnesses. Businesses in construction, manufacturing or health care sectors must assess their risks and consider additional insurance, such as workers’ compensation or specialized liability coverage.
- Earthquakes and floods—Natural disasters like earthquakes and floods are typically excluded from standard BOPs. Depending on your business’s location, evaluating the risks associated with these events and securing separate coverage, if necessary, is essential. Earthquake and flood insurance can be critical for businesses in regions prone to these disasters.
Business Insurance in Annapolis, MD
While business owners policies offer comprehensive coverage for many aspects of small business operations, it’s vital to recognize their limitations. To ensure comprehensive protection, contact Deale & Associates Insurance Agency. Our experienced insurance advisors can tailor coverage to address the unique risks faced by your business.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.