Business Owners Policy vs. General Liability Insurance
As a business owner, the two main ways to cover your business are General Liability insurance and a Business Owner's policy. But which one is best for you? Find out here.
What is General Liability insurance?
The most significant risk that comes with being a small business owner is third parties bringing legal action against you. General Liability insurance is there to protect those third parties from getting hurt in the course of your business operations.
The best part of General Liability insurance, and most often utilized, is attorneys fees, defense costs, and settlement costs. Even the most careful business owner can be sued, and small businesses like yours cannot afford to pay these hefty legal expenses. With General Liability insurance, you're covered.
What is a Business Owner’s Policy?
Another policy you probably have heard about and considered is the Business Owner's policy (or BOP).
A BOP is an all-in-one package that includes:
- General Liability Insurance
- Commercial Property Insurance
A Business Owners Policy is an affordable and easy way to cover your small business against critical risks.
In addition, you can add coverage to your BOP policy for extra coverage. For example, on top of General Liability and Commercial Property insurance, you could add to your BOP Business Interruption insurance. This means that if a covered claim occurs, you can keep your business running while it is being repaired.
What do Business Owners Policy and General Liability insurance have in common?
A BOP includes General Liability insurance as part of its policy. Think of it as an umbrella covering both General Liability and Commercial Property insurance.
The greatest thing they have in common is the coverage of defense costs coverage, given that legal fees can add up quickly. So, whether you go for General Liability or the BOP, you can rest assured that you will be covered for these legal anc court expenses.
What is the difference between General Liability and Business Owners?
A General Liability insurance policy does not include Property insurance, and you can't add on protection to this policy.
A Business Owners Policy, however, can be somewhat tailored to your business. It is best to discuss your business needs with your insurance agent, and they can advise you whether a BOP will cover you, or whether you need extra protection, such as Auto insurance, Workers Compensation, or even Cyber Liability.
Together with your insurance agent, ensure you cover your business risks and needs adequately.
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