What Type of Liability Insurance Do I Need for a BOP?

Business owners policies are designed to protect your business by combining a variety of coverages, including liability insurance. Liability insurance concerns claims filed against your business that could result in an expensive lawsuit. man turning open sign

A business owners policy (BOP) automatically includes general liability. General liability insurance covers claims against your business concerning bodily injury, property damage and personal or advertising injury. If someone is injured on your business’ property, for example, general liability insurance can help cover the victim’s related medical bills and simultaneously protect your business in case of a claim.

General liability is only the first basic liability insurance coverage, however. Depending on your business’ industry and other factors, you may need to add liability insurance to your BOP such as:

Professional Liability: While general liability covers non-professional negligent acts, professional liability covers professional negligent acts. This insurance provides coverage if a claim is filed due to an act of professional negligence that results in monetary loss for their client. This insurance is important for lawyers, medical professionals, accountants, financial advisers and more.
Data Breach Coverage: If a data breach occurs, data breach insurance can help cover the cost of hiring a public relations consultant, legal fees that arise from claims due to the breach, and extortion payments.
Crime Coverage: Most insurance excludes criminal acts, so crime insurance provides coverage if an employee or partner steals money from the company.
Cyber Liability: Cyber liability helps in instances where personal client information is lost or stolen due to a cyber attack or other incident. This insurance is crucial for a lot of businesses, since most information is held online now.
Inland Marine Insurance: A commercial auto insurance policy won’t always cover expensive equipment while it’s being transported. Inland marine insurance provides coverage for loss or damage that occurs to equipment in transit.

Liquor Liability Insurance: Liquor liability insurance covers damages and injuries caused by someone who recently purchased alcohol at your business. If you own a gas station and someone purchases beer, for example, and later that night gets into a drunken brawl with another person outside and causes injuries, liquor liability insurance can help cover responsibility your business may face.
Umbrella Insurance: This insurance covers gaps left over by your other liability insurance policies.
Directors and Officers Liability: Directors and officers liability insurance covers the key employees of your business in case of a claim regarding their activity under your employment. This can often include EPLI coverage, or Employment Practices Liability Insurance. EPLI covers claims against directors or officers regarding discrimination, sexual harassment, wrongful firing or hiring, failure to promote and more.

Does Liability Insurance Cover Lawsuits?
Part of liability insurance helps cover the cost of a lawsuit. If someone is injured on your business’ property and decides to sue, general liability insurance can help pay for the related expenses such as court fees, defense costs, settlement expenses and more. This applies to nearly every liability insurance policy.

For example, say that you run a hospital and one of your top surgeons is accused of making a mistake during surgery, causing the victim to undergo another expensive surgery to correct the issue. The victim decides to sue your surgeon and the hospital for their pain and financial loss. This incident would be covered under professional liability insurance, known in this case as medical malpractice insurance. It can help with the settlement to cover the victim’s medical bills and financial loss as well as protecting your surgeon and hospital for the expensive lawsuit.

How Much Liability Insurance Should I Have on My BOP?
Every business is different, which is why different limits of liability are available. It is important to speak with your insurance agent about the level of risk facing your business. The more risk you face, the higher you will want to set your liability insurance limits. BOPs are flexible to allow you to tailor the policy specifically for your business’ needs, but they are still only designed for small businesses in low risk industries. If you have a large business or believe you operate in a high risk industry, speak to your insurance agent about a commercial package policy (CPP) that may cover your needs.

Connect with an insurance agent about protecting your business with the liability you need.

What Type of Liability Insurance Do I Need for a BOP?

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