Business insurance coverage is sometimes a complicated subject to understand. There are many different ways to cover your business with insurance. Business insurance can vary as much as businesses vary. No one needs the same type of coverage.
Many businesses find it financially beneficial to purchase a Business Owners’ Policy (BOP) as their insurance foundation. BOPs can be thought of as similar to a bundled insurance policy. Under one policy, coverage offerings typically include property coverage, business interruption insurance and liability protection.
Having these essential services covered by one BOP plan can be beneficial as opposed to purchasing the policies separately.
However, remember that these plans don’t cover all types of risks in your business.
BOP policies may not cover things like commercial auto insurance, workers’ compensation or health care benefits. They also likely won’t cover many professional liabilities.
But wait? Don’t BOPs cover liabilities?
The answer is yes, they usually do. They just may not cover all liabilities. In many cases a professional liability and another type of liability coverage are two different things.
The liabilities covered by BOPs are those that stem from problems or harm your business might cause to other parties.
For example, if someone falls in your business and breaks this or her leg, they might sue you for medical costs. Your BOP liability coverage will usually cover you in these cases.
Professional liabilities, on the other hand, are covered by what is commonly known as errors & omissions coverage. This type of insurance covers problems that come from giving advice or offering services. They aren’t usually covered by the standard BOP.
For example, your business might advise someone on how to repair their computer network, and then their system suffers a catastrophic breakdown. The business might sue you for damages. You might not have coverage without a professional liability insurance plan.
Therefore, you should know the merits of BOP plans. However, these policies won’t cover every risk. If your business deals in high amounts of professional services or advice, then you might need to purchase errors & omissions coverage.
Make sure you know what liabilities your business owners policy covers. If you need to add additional coverage, you can explore Porter-Brandenburg’s website for more information on Dallas business insurance. Call us today at (972) 234-5588 for more information.