Key Differences Between General Liability Insurance and Business Owners Policies

Business owners have to juggle multiple responsibilities while operating their business. Every business is exposed to risks depending on the industry that they are involved in. Luckily, there are multiple insurance options for you to consider that allow you to protect your business during emergencies. Here’s a look at some of the differences between general liability insurance and BOP.

  • What Exactly Is General Liability Insurance Coverage?

    General liability insurance covers you if your business causes property damage or accidentally injures a third party. The policy also covers potential advertising injury claims. General liability insurance covers a customer’s medical treatment if they are injured on your property. The policy also covers your legal defense costs if the injured party opts to sue you. General liability insurance handles property damage liability claims as well.

    Perhaps you are responsible for accidentally damaging your customer’s phone or putting a dent in their car. The policy will cover you in those situations. General liability insurance also covers advertising injuries. Advertising disputes may occur if a rival alleges a copyright violation or they believe your marketing campaign was designed to cause their business harm. Purchasing general liability insurance is often mandatory if you’re looking to secure financing or you’re trying to secure a professional contract. Be aware, though, that general liability insurance does not cover injuries in the workplace.

  • What Do You Mean by a Business Owners Policy?

    While you may choose to purchase general liability insurance as a stand-alone policy, you can also add the coverage by purchasing a Business Owners Policy. A BOP combines general liability insurance with business interruption insurance and commercial property insurance under one rate. Commercial property insurance covers the physical location of your business and your equipment against potential damages. Any equipment that you are renting is also covered. Business interruption insurance helps replenish lost income if your business is forced to shut down due to an emergency such as an accidental fire.

  • Key Differences

    General liability insurance policies provide protection if your business is held liable for causing property damage or injuring someone. These are the primary coverage benefits. A BOP differs in that you will receive general liability coverage, as well as protection for the physical building that you operate out of and your equipment. Your business is also protected if an emergency arises and you have to shut down operations for a period of time.

  • Policy Costs

    A BOP provides the same layer of liability coverage as a general liability insurance policy. You won’t miss out on key coverage if you opt to purchase general liability insurance through a BOP. In most cases, purchasing a BOP instead of general liability insurance as a stand-alone policy can help you save money on insurance costs.

  • Things to Consider

    Be aware that Business Owners Policies are not available to every business. Insurers look at multiple variables to help determine if a business qualifies for a BOP. They will assess your revenue, the industry you are working in, the size of your location, the building’s safety features, and the financial strength of your business.

Consult With Pittman Insurance Group, LLC

As a business owner, you are aware that you could be sued at any moment. Adding general liability coverage helps alleviate stress if an issue arises. If you are operating a small business, purchasing a BOP is an efficient option. If you have any questions, contact the team here at Pittman Insurance Group, LLC.

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