Business owners policies (BOPs) meet the insurance needs of most small businesses, but they aren’t sufficient for all small businesses. Whether your Massachusetts business needs coverages beyond what a BOP provides depends on the potential risks that your business is exposed to.

Will a Business Owners Policy Provide All of the Coverages My Massachusetts Business Needs?

BOPs Provide Coverages Many Businesses Need

BOPs are designed to meet the most common insurance needs that small businesses have. To this end, policies provide multiple important coverages.

As is the case with any type of package policy, the exact coverages included in a specific business owners policy may vary. In general, however, business owners policies offer the following as standard coverages:

• Real Property Coverage, which is typically used to insure commercial buildings

• Business Personal Property Coverage, which may insure supplies, inventory, furniture, equipment, and similar items that a business owns

• Equipment Off Premises Coverage, which might cover equipment when it’s taken off a business’ property

• General Liability Coverage, which normally offers protection from a number of liability claims

• Medical Payments Coverage, which might cover medical treatments of injuries that other people sustain and a business is responsible for

• Business Interruption Coverage, which may provide payments if a covered incident causes a decrease in revenue

In addition to these coverages, many business owners policies also provide optional protections, such as:

• Hired and Non-Owned Auto Coverage, which may cover vehicles that employees use for work

• Loss of Money and Securities Coverage, which might protect cash and other securities a business keeps on its property

• Loss of Electronic Data Coverage, which may help recover computer data that was lost

• Employment Practices Liability Coverage, which might protect a business from employment-related liability suits

A Business Owners Policy Won’t Include Every Coverage That’s Available

While the above list contains many protections, business owners policies don’t include all of the commercial coverages that insurers offer (or that businesses may want). For instance, most business owners policies don’t offer the following protections as either standard or optional coverages:

• Tank Leakage Coverage, which is frequently used in the beer industry

• Pollution Liability Coverage, which businesses that work with chemicals often should have

• Inland Marine Coverage, which sometimes is needed to insure equipment that’s transported between sites

• Supply Chain Risk Coverage, which manufacturers sometimes want

• Farm or Ranching Loss Coverage, which is typically used in the agricultural sector

Selecting the Right Policy for Your Massachusetts Business

If your Massachusetts business is fairly small and has only common insurance needs, BOPs may provide all of the protections your business needs. For many businesses, it’s the most affordable option and offers plenty of coverages.

If your business is larger or faces less common risks, however, it may need more protections than business owners policies offer.

A business that needs just one or two additional coverages might be able to supplement a business owners policy with a couple stand-alone policies. For example, a local store in Framingham, MA that has employees might only need a BOP and a workers compensation insurance policy.

A business that has multiple insurance needs which business owners policies can’t meet may need a commercial package policy. Commercial package policies are similar to business owners policies, but they offer additional coverage options. They can include highly specialized coverages and more robust protections.

Have an Agent Help You Select the Right Type of Commercial Insurance

For help determining whether a business owners policy is right for your Massachusetts business, contact an independent insurance agent. An agent who specializes in commercial insurance will be able to assess your business’ risk exposure, and help you decide whether BOP insurance is sufficient or more coverages are needed.