Endorsements and Riders for Your BOP

Business owners need insurance coverage, that’s a fact. Many enroll in a business owners policy (BOP), which comes with several types of protection. However, BOPs don’t contain all the coverage that business owners might need. What are some of the ways you can expand your coverage? 

You often have the opportunity to add riders or endorsements to your BOP. This will extend more coverage to critical elements of your business. So, ask your insurance agent if you have the option to expand your coverage in this way. 

How You Can Benefit from BOP Endorsements 

Insurance policies come with set terms. When you enroll in coverage, the policy will state what it will and will not cover. So, if something happens to an asset not covered by your insurance, the policy won’t pay. Even so, you might still need assistance even if your policy does not automatically offer it. 

With an endorsement, or rider, you can extend coverage to items not covered by a standard policy. Therefore, it’s added protection that can more securely protect the business. 

Common BOP Endorsements 

When you enroll in a BOP, it will likely contain three elements of coverage. 

• Property and structure coverage insures your building and contents inside it.
• Liability insurance covers the harm you might cause others. If someone slips and falls in your business, you can use this coverage to settle the damage costs with them.
• Business interruption coverage provides funding in case you must close temporarily for repairs. In other words, it helps you pay the bills during a temporary closure. 

While these elements of coverage provide invaluable protection, they might not cover every damaging risk the business faces. Business owners might need to ask for endorsements based on their specific needs. Some of those available can include: 

• Cyber liability coverage: Insures data losses and identity theft caused by breaches of your computer systems.
• E&O insurance: Errors and omissions coverage protects you against professional mistakes. For example, if you cause financial loss to a customer, this coverage can help you repay the losses.
• EPLI insurance: Your hiring and retention process must remain transparent and fair. However, if allegations of misconduct, like discrimination or harassment, arise, this coverage might help you reach settlements with affected parties. 

Depending on your insurer, you might be able to find other endorsements to add to your policy. Still, keep in mind, not all policies will offer all types of endorsements. Therefore, talk to your insurance agent about your specific operation. They can help tailor your coverage to your specifications.