If you’re a business owner, then you know that insurance is a necessary evil. No one ever wants to have to file a claim, but it’s essential to be prepared in case something happens. There are many types of insurance policies available, and it can be difficult to decide which ones you need. This post will discuss the difference between a business owners policy and general liability insurance. We’ll help you figure out which best business insurance is right for you!
What Is Business Owners Policy?
A business owners policy, also known as a BOP, is a bundled insurance package that includes property and liability coverage. This type of policy is typically for small to medium-sized businesses and can be customized to meet the specific needs of each individual company. It covers things like buildings, equipment, and inventory. BOP also provides protection against certain lawsuits, such as bodily injury or property damage claims. Some common coverages included in a BOP are property damage, business interruption, crime and theft, and equipment breakdown.
What Is General Liability Insurance?
On the other hand, general liability insurance is a standalone policy that provides protection against claims of bodily injury or property damage caused by the business’s operations, products, or services. This type of insurance does not include coverage for the business’s own property or equipment.
So, What’s the Difference?
While both policies provide coverage for certain types of lawsuits, a BOP is more comprehensive in its coverage and often includes additional protections such as business interruption insurance. Additionally, a BOP may be less expensive than purchasing separate property and liability policies. On the other hand, a BOP may not have enough coverage for larger businesses with unique insurance needs.
When Should I Buy A BOP?
Purchase a BOP if you want property and equipment coverage in addition to GL insurance. Even if your company doesn’t have a lot of property, you should still safeguard it. You can purchase a company owner’s coverage instead of 2 distinct policies. It provides all the benefits of general liability insurance, while also covering your property, equipment, and company. You also have the option to buy additional coverage for things like equipment malfunction, data loss, or wire transfer theft if necessary.
When Should I Buy General Liability Insurance?
- If you run a store and a client slips and falls, your business receives a lot of foot traffic. Their medical expenditures can be covered by a general liability policy. If they decide to sue you, it will also assist cover your legal fees.
- You visit clients; what if you accidentally damage a client’s property while on the job? General liability insurance can cover repairs or replacement, as well as legal expenses and compensation.
- If you need to rent or lease space for your business, your landlord may mandate that you carry general liability insurance. It is to ensure that they are not held accountable for any incidents that occur on the premises.
As always, it’s important to thoroughly assess your individual needs and potential risks before choosing an insurance policy. By understanding the difference between a BOP and general liability insurance, you can make informed decisions about the best insurance coverage for your business.