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Understanding Business Owners Policy vs General Liability

If you are a business owner, there are many things to consider when it comes to your insurance coverage. A critical component of any business’s insurance is a Business Owner’s Policy (BOP). A BOP is a type of commercial insurance that combines all the general liability, property and other risks associated with running a business. Knowing what the difference between BOP and General Liability Insurance can help you make informed decisions about your company’s coverage.

February 20th, 2023

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What Is General Liability Insurance?

General liability insurance covers claims resulting from bodily injury, property damage or personal/advertising injury caused by you or your employees while conducting business activities. The policy will generally cover legal costs associated with defending against these types of claims as well as any settlements or judgments that may be awarded. In addition, this type of policy typically covers third-party property damage and bodily injury caused by products sold or services performed by the insured party.

What Is Business Owners Policy?

A BOP is designed to provide an all-inclusive package for small businesses that combines different types of protection into one policy. Generally speaking, this type of policy includes both general liability and property coverage. It also may include protection against crime, such as employee theft or vandalism; loss of income due to interruption in operations; and cyber liability if customer data is compromised in a data breach. Additionally, depending on the size and scope of your business, you may also be able to add additional coverage such as professional liability (also known as errors & omissions), workers’ compensation, umbrella coverage, automobile coverage, etc.

An important thing to keep in mind when considering which type of insurance policy is best for your business is that each company has unique needs and risks associated with their operations. While there are similarities between general liability and a BOP policy, understanding the differences can help determine which type of coverage best meets the needs of your business. When looking for an appropriate plan for your company’s unique needs it’s important to consult with an experienced insurance agent who can help identify potential risks and find the right balance between cost and coverage for your small business

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