A standard business insurance policy provides essential protection—but many business owners don’t realize how much coverage they may still be missing. Optional add-ons, also called endorsements or riders, help you customize your insurance to match your industry, operations, and risk level. The right add-ons can protect your revenue, assets, employees, and long-term stability in ways a basic policy cannot.
This guide breaks down the most valuable business insurance add-ons to consider and how each one enhances your protection.
1. Business Interruption Insurance
Business interruption insurance helps replace lost income if your business must temporarily close due to a covered event, such as fire or storm damage.
This add-on can cover:
- Lost income
- Ongoing expenses (rent, salaries, utilities)
- Relocation costs
- Temporary workspace
Ask:
- What events qualify for interruption coverage?
- How long do benefits last?
- Is there a waiting period before payments begin?
This is one of the highest-value add-ons for small and medium businesses.
2. Cyber Liability Coverage
Cyberattacks, data theft, and online fraud are major risks for modern businesses—even small ones.
Cyber coverage may include:
- Data breach response
- Customer notification costs
- Credit monitoring services
- Cyber extortion or ransomware response
- Data recovery
- Liability for compromised information
Ask:
- Does the policy cover both first-party and third-party losses?
- Are phishing and social engineering scams included?
Cyber coverage is increasingly essential for any business handling customer data.
3. Equipment Breakdown Coverage
Standard property policies often exclude mechanical and electrical failures.
Equipment breakdown coverage protects:
- HVAC systems
- Machinery
- Refrigeration units
- Boilers
- Electrical systems
- Computers and electronics
This add-on helps keep business operations running smoothly and minimizes unexpected repair costs.
4. Professional Liability (Errors & Omissions)
If your business provides advice or services, professional liability coverage protects against claims involving:
- Negligence
- Mistakes or errors
- Missed deadlines
- Misrepresentation
Ask:
- Does the policy include legal defense costs?
- Are subcontractors covered?
Service-based businesses almost always need this add-on.
5. Commercial Umbrella Coverage
An umbrella policy adds an extra layer of liability protection above your standard limits.
This helps protect your business from:
- Large lawsuits
- Severe injury claims
- High-value property damage
- Catastrophic incidents
Umbrella coverage is inexpensive and crucial for risk-heavy industries.
6. Employment Practices Liability Insurance (EPLI)
EPLI protects your business from employment-related claims such as:
- Wrongful termination
- Harassment
- Discrimination
- Retaliation
- Wage and hour disputes
Ask:
- Are defense costs included?
- Are third-party claims (such as customers) covered?
This add-on is extremely valuable for businesses with multiple employees.
7. Hired and Non-Owned Auto Coverage
If your employees use personal or rented vehicles for work purposes, your business may be liable for accidents they cause.
This add-on provides protection for:
- Employee-owned cars used for business
- Rented or leased vehicles
- Delivery or client-visit-related driving
Even businesses without company-owned vehicles often need this endorsement.
8. Inland Marine Coverage
Despite the name, inland marine coverage protects business property that moves from location to location.
It covers:
- Tools and equipment
- Contractor gear
- Mobile electronics
- Property in transit
- Off-site storage
This is essential for contractors, construction companies, tech installers, and mobile service providers.
9. Product Liability Endorsement
If your business manufactures, distributes, or sells physical products, you may need expanded product liability coverage.
This protects you from:
- Defective products
- Malfunctioning equipment
- Design issues
- Labeling or instructions errors
This add-on reduces the financial impact of product-related injury claims.
10. Spoilage or Refrigerated Goods Coverage
Businesses reliant on refrigeration—restaurants, florists, grocers, caterers—need protection against spoilage caused by:
- Power outages
- Equipment failure
- Mechanical breakdown
This add-on reimburses losses for food, flowers, medicine, or other perishable products.
11. Key Person Insurance
Key person insurance protects the business financially if an essential employee—such as an owner, founder, or top salesperson—passes away or becomes disabled.
Benefits can cover:
- Temporary staffing
- Revenue loss
- Loan repayments
- Transition planning
This add-on stabilizes the business during unexpected leadership changes.
12. Contractors’ Equipment Coverage
For construction and trades businesses, standard property coverage may not protect tools and large equipment used at job sites.
This add-on covers:
- Heavy machinery
- Power tools
- Mobile equipment
- Rented or borrowed tools
Ask about theft, vandalism, and transportation coverage.
13. Crime and Employee Dishonesty Coverage
Crime-related losses are typically excluded from basic policies.
This endorsement covers:
- Employee theft
- Fraud
- Forgery
- Burglary
- Computer fraud
- Funds transfer fraud
This is valuable for businesses handling cash, sensitive data, or financial transactions.
14. Flood or Earthquake Coverage
Standard commercial property insurance excludes earthquakes and floods.
Ask:
- Is a separate flood policy required?
- Are earthquakes offered as an endorsement or stand-alone policy?
- What are the deductibles?
This is essential in high-risk geographic regions.
15. Ordinance or Law Coverage
If your building is damaged, local codes may require costly upgrades that basic insurance will not cover.
This add-on helps pay for:
- Code-compliant repairs
- Mandatory structural upgrades
- Partial demolition and rebuild costs
Older buildings benefit greatly from this coverage.
Final Thoughts
Business insurance is not one-size-fits-all. The right add-ons strengthen your policy, fill critical gaps, and protect your business from financial risks that a basic policy might overlook. Whether you need cyber coverage, business interruption insurance, EPLI, or an umbrella policy, endorsements help create the level of protection your business truly requires.
Smart business owners don’t just buy insurance—they customize it.