What every Connecticut small business gets wrong about a BOP
A Business Owners Policy, or BOP, is the most common starter package we write for small businesses across the 11+ states we serve. It bundles three things you almost certainly need: general liability, commercial property, and business interruption coverage.
The problem is that "starter package" gets sold like a finished package. A BOP is a foundation. Most small businesses I work with have at least one expensive gap on top of it. Sometimes three.
Here are the gaps I see most often.
1. Cyber liability is almost never included
A standard BOP will not pay for a data breach, a phishing wire transfer, or a ransomware attack. If you take credit cards, store customer addresses, or send invoices over email, that is a real exposure. Cyber endorsements are usually a few hundred dollars a year for a small business. That number does not move much. The cost of NOT having it can run into six figures fast.
2. Professional liability is excluded by default
If your business gives advice, designs something, or provides a service that could cause financial harm if it goes wrong, your BOP does not cover that. Accountants, designers, consultants, IT shops, marketing agencies, real estate brokers, all of these need a separate Errors and Omissions policy. The BOP handles physical injury and property damage. It does not handle "you gave me bad advice and it cost me money."
3. Sub-limits on stolen or damaged equipment
Read the property section of your BOP carefully. Almost every carrier puts sub-limits on specific categories. Stolen laptops outside your premises. Damaged inventory off-site. Tools left in a vehicle overnight. If you have a small fleet of laptops or expensive specialized equipment, the default sub-limit is usually nowhere near replacement cost.
4. Business interruption that does not actually cover the interruption
Business interruption pays you when a covered loss shuts you down. The catch is the word "covered." If your building loses power for 48 hours because of a winter storm, that is usually not covered unless utility services interruption is specifically endorsed. We see this one bite restaurants and food retailers all the time.
5. Hired and non-owned auto
If you or any employee ever drives a personal car for a business errand (delivery, client visit, picking up supplies), and an accident happens, your personal auto policy may not cover the business use. Hired and non-owned auto is a small endorsement that fills this gap. Skipping it is a common, very expensive mistake.
What to do about it
If you are not sure whether your BOP has these gaps, send me your declarations page and a one-line description of what your business does. I will mark up exactly where the holes are and what it would cost to close them. No charge, no obligation, and I will tell you if your current policy is actually fine the way it is.