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A business owner policy, or BOP, is a type of broad business insurance policy. It provides businesses with some of the most important types of insurance protection. This includes property insurance and general liability coverage, in most cases.

Having this coverage is important, but it may not protect against all risks. And, in other situations, you may need additional coverage to reduce risk. Poor employee performance is a key area of concern in these cases.

When an Employee Makes a Mistake

An employee is a representative of your business. That is, he or she is acting on behalf of your company. As a result, your company is responsible for the actions of these individuals. If an employee makes a mistake, your company is responsible. Often, a general liability insurance policy will cover damages created by your employee. Your BOP should provide this protection.

Here's an example. A customer comes in to buy a product. The employee improperly demonstrates how to use the product. The customer buys it, goes home, and uses it in accordance with the employee's instruction. However, the customer suffers a burn the product as a result. They might sue the employee or the business for negligence. Your BOP coverage will help cover medical bills or other losses caused by your employee's mistake. It might also help you cover legal fees associated with a lawsuit.

When an Employee Is Dishonest

Other situations can be more worrisome for business owners. Mistakes happen. However, in some cases, employees can be dishonest. They may try to take the personal information of a customer. They may intentionally cause harm to a customer. By law, your company generally remains responsible for the employee's actions in these instances.

Your BOP might offer some liability coverage to you in these scenarios. However, in a serious situation, that coverage may not be enough. You may need extra business insurance and liability coverage. It is often possible to extend your basic BOP level of protection to a higher dollar amount. You may also wish to invest in umbrella liability insurance. This extends your protections even further.

Work with a Bruening Insurance agent to learn more about the types of coverage you need. Ask about other incidents involving employees. Find out which level of liability insurance is best for your company. You may find it is easier to maintain higher levels of coverage than to face financial loss by going without it.

You cannot know when risks like this will occur. Business insurance can help you avoid the fallout associated with them. For more information, contact us today.

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