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Business Owner’s Policy (BOP) is often one of the first and smartest insurance decisions a small business owner can make. It bundles essential coverages into one policy, helping protect your business from common risks like property damage, customer injuries and lost income after a covered disruption.
While a BOP is a strong foundation, it doesn’t cover every risk your business may face. Understanding potential coverage gaps can help you build more complete protection.
A standard Business Owner’s Policy (BOP) bundles three core coverages:
- Business property insurance, which helps protect your building, equipment and inventory from covered events like fire or theft
- General liability insurance, which helps cover claims if someone is injured or their property is damaged because of your business
- Business income insurance, which can help replace lost income if you temporarily close due to a covered loss
Together, these coverages address many day-to-day risks. But they don’t cover everything, and that’s where gaps can emerge.
Even well-insured businesses can face unexpected exposures if they rely only on a BOP. Here are some of the most common gaps to be aware of:
Professional Mistakes or Service-Related Claims
If your business provides professional advice, expertise or services, a BOP typically won’t cover claims tied to mistakes, missed deadlines or if a client claims your services didn’t meet expectations. Even when you’ve acted in good faith and followed industry standards, clients could claim your work caused them financial loss.
These situations can also lead to legal expenses and you could incur costs for an attorney to defend you against claims that may be baseless.
In these cases, business owners may need professional liability insurance, also known as errors and omissions insurance, to help cover claims related to professional services and help pay for legal defense costs.
Employee Injuries
If your small business has any employees, a BOP typically won’t cover injuries or illnesses that happen on the job. To help mitigate these risks, business owners may need workers’ compensation insurance, to help cover medical costs and lost wages for employees who are injured due to their job duties.
Without this coverage in place, your business could be responsible for an employee’s medical expenses and lost wages if an employee is injured on the job.
Cyber Incidents
If your business stores customer or employee information, a standard BOP typically won’t cover losses related to cyber incidents. However, insurance companies like The Hartford offer endorsements that can be added to your BOP to help cover certain cyber risks like data loss, data restoration and lost business income due to a cyberattack.
Even small businesses can be targets for cyberattacks, and the impact can go beyond lost data. For example, a hacker could gain access to your computer system and expose customer payment information. Your business could face costs to investigate the breach, notify affected customers and manage potential legal claims.
Business owners may also consider a standalone cyber insurance policy, which can help provide broader protection for data breaches, recovery efforts and other related legal obligations.
Certain Natural Disasters and Events
A BOP can help cover many types of property damage, but it typically won’t cover certain events like floods or earthquakes. Depending on where your business is located, you may need specialized coverage. For example, flood insurance may be available through the National Flood Insurance Program (NFIP).
Water-related damage is one of the most common challenges small businesses face, according to
The Hartford's 2025 claims analysis. Because flooding isn’t typically covered by a standard BOP, it’s important to understand your risks and consider additional coverage to help protect your business.
Business Vehicle Use
If your business uses vehicles for deliveries, transporting equipment or traveling between job sites, a BOP typically won’t cover auto accidents that happen on the road. Business owners may need commercial auto insurance to help cover damage to your vehicles, injuries to others and related costs if you or an employee get into an accident while driving for work.
Even when a BOP does provide coverage, the limits and scope may not fully reflect your risk.
For example, you experience a covered loss, but the cost to replace your damaged equipment exceeds your policy limits – leaving you with out-of-pocket expenses. This can be especially important for higher-cost events.
Our recent claims analysis also found that fire damage is the costliest small business claim, with an average cost of around $80,000. For business owners who own the commercial property they operate from, fire-related claims are often more than twice as costly as losses involving non-owned locations.
Closing coverage gaps doesn’t mean replacing your BOP, it means building on it. Here’s four tips on how to start building more complete protection:
1. Assess Your Risks
Consider the type of work you do, where you’re located, the services you provide and how your industry shapes your exposure. You should also think about your workplace safety policies and how you use technology and data.
2. Talk to an Insurance Professional
Take time to understand what your policy includes and what it excludes. You can also talk with your insurance agent or carrier to help confirm whether your current coverage and limits align with your business needs and identify any gaps.
3. Add Coverage Where Needed
Depending on your business, you may want to consider these additional types of coverage:
- Professional liability insurance
- Workers’ compensation insurance
- Cyber liability insurance
- Commercial auto insurance
A Business Owner’s Policy is a strong foundation, but it’s only one piece of your overall protection.
By understanding where coverage gaps can exist and taking steps to address them, you can better protect your business from risks and move forward with confidence.
If you have questions about small business insurance, you can contact our team of specialists at
877-585-0367 for guidance tailored to your business.
Certain coverages vary by state and may not be available to all businesses. All Hartford coverages and services described on this page may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Insurance Group, Inc. In Texas, Arizona, New Hampshire, Washington and California by Hartford Fire Insurance Company, Hartford Casualty Insurance Company, Hartford Accident & Indemnity Company, Hartford Underwriters Insurance Company, Twin City Fire Insurance Company, Pacific Insurance Company, Limited, Sentinel Insurance Company, LTD (CA license #8701), Hartford Lloyd's Insurance Company, Hartford Insurance Company of Illinois, Hartford Insurance Company of the Midwest, Trumbull Insurance Company, Hartford Insurance Company of the Southeast, and Property & Casualty Insurance Company of Hartford and its property and casualty insurance company affiliates, One Hartford Plaza, Hartford, CT 06155.
The Hartford Insurance Group, Inc., (NYSE: HIG) operates through its subsidiaries, including the underwriting company Hartford Fire insurance Company, under the brand name, The Hartford,® and is headquartered in Hartford, CT. For additional details, please read The Hartford’s legal notice at https://www.thehartford.com.
