For which type of losses would an insured under a Business Owners Policy likely need to purchase additional coverage?

A Business Owners Policy (BOP) typically provides a range of coverage for small to medium-sized businesses, including property damage, liability protection, and certain business interruptions. However, it often has limitations when it comes to certain risks, particularly business interruption due to specific events.

Business interruption coverage is essential for ensuring that a business can continue to operate and recover lost income during the time it is unable to conduct normal operations. While some BOPs may include limited business interruption coverage, the policy may not cover all situations or provide sufficient limits. As such, a business might find that the standard amount of coverage is not adequate for their particular risk profile or needs, especially in more complex or expensive operations. Therefore, obtaining additional coverage specific to business interruption can help protect against a broader range of potential income losses that could arise from covered perils.

Natural disasters, employee theft, and client property damage typically have certain levels of coverage included in BOPs, depending on the specifics of the situation and the endorsements of the policy. However, business interruption often requires careful assessment and potentially additional endorsement or a separate policy to ensure comprehensive protection. This makes the need for additional coverage in this area more pronounced compared to the other options.