Business Owners Policies (BOPs) are expanding to cover new areas. Micro businesses that traditionally used a commercial package form may be able to obtain additional insurance through a BOP, such as general liability, employment practices, cyber, privacy, errors and omissions, umbrella, and other types of coverage.
The most significant change is the ability to provide a BOP policy for a larger selection of businesses and products where it has not been applied in the past. Instead of obtaining multiple insurance policies, a business owner can get one insurance policy to cover several areas.
Changes are also occurring with optional coverage and endorsements. Having one policy and one bill is an attractive feature for many business owners and agents.
Employment practices liability insurance covers a business if an employer or employee is accused of discrimination, harassment, wrongful termination, or other types of misconduct. From the 1990s until now, coverage has generally been employee to employee. However, as more businesses employ independent contractors, third-party coverage is becoming increasingly important.
Standalone cyber insurance is the norm, but some business owners policies are starting to include coverage for identity and recovery services for employees and customers, first- and third-party network security breaches, and other scenarios. Coverages that used to be separate, such as viruses and data breaches, are now being brought together into a single policy. Small business owners especially need that coverage because they most likely do not have the resources to compensate for those types of losses.