Just like snowflakes, no two small businesses are exactly alike. That’s why, in the wide world of Business Owners’ Policies (BOPs), you’ll find lots of add-on options to supplement your standard BOP property and commercial general liability (CGL) coverage. Depending on where you live and the type of small business you operate, you may want to ante up the extra premium for one or more of these BOP extensions and endorsements.
Accounts Receivable Coverage
Imagine what would happen to your business if your accounts receivables were destroyed or stolen? Pretty hard to collect what you can’t remember you billed. While it’s a really good idea to keep copies of all your important documents off-premises, or in a safe that’s impervious to fire, water damage and theft, it’s not always feasible. That’s why there’s BOP optional coverage that will cover receivables (up to a limit per occurrence), as well as the cost to reconstruct your lost records and any additional collection fees incurred. Typically, this coverage doesn’t extend to the actual value of the paper, disks or tape your records were stored on. For that, you’ll need Coverage for Valuable Papers and Records, which includes electronic media, manuscripts, maps, deeds, film and drawings.
Computer and Funds Transfer Fraud
Increasingly, today’s businesses are at risk that somebody will hack into a bank account. This BOP option covers your losses from any money or securities directly caused by fraudulent transfer.
Burglary and Robbery
If you’re victimized by a stick-up or a break-in, believe it or not, your standard BOP doesn’t cover the loss of stolen goods. This option does, at least up to a certain amount.
One bad apple can nickel and dime you out of business. Theft by dishonest employees is not covered by the aforementioned burglary and robbery option. For that there’s Employee Dishonesty Insurance, which also extends to temporary and leased staff.
Cash and Securities
If a thief steals actual cash, stock certificates or securities from your place of business or from an employee or you while you’re at the bank, going to the bank or storing in your private residence, this will cover the loss.
If your blue plate special ends up poisoning your customers or someone on your wait staff turns out to be a modern day Typhoid Mary, an Endorsement for Food Contamination will cover you. Some policies include the cost of promotion to restore your spoiled reputation.
If your business depends on machinery, this option will cover the loss of income incurred while you get the equipment repaired. Note that it does not cover the actual repair costs.
This covers losses to landscaping, fencing, satellite dishes, signs connected to your building and similar outdoor items, and includes debris removal. If you have a valuable sign that isn’t attached to your building, you’ll need a separate Outdoor Signs extension for that.