Small business owners often need to wear many hats, especially if they’re just starting out. This may mean becoming an “expert” in many topics, from accounting to marketing. While you’d probably prefer to take it slow and carefully study these areas, you might not have enough time to get up to speed in all of them.
Insurance is one area where you may need to hit the ground running. It may be important or even necessary to protect yourself and your business with different policies—but which ones do you need? Choosing coverage can be confusing, especially with so many choices out there!
Here we’ll break down two types of coverage you might consider: a Business Owner’s Policy vs. General Liability.
What is General Liability insurance?
General Liability insurance is a primary policy type that many small business owners consider. It helps protect against third-party claims of property damage or injury, including covering your legal expenses and the cost of setting the situation right (up to the policy limits). Because it helps address two critical areas of risk, businesses in just about every industry may buy a General Liability policy.
Third-party claims can come from any member of the public who interacts with your business. This includes your customers, clients, vendors, suppliers and even delivery people. General Liability policies do not cover injury or property damage suffered by you or your employees.
General Liability insurance may also be referred to as Commercial General Liability or “slip and fall” coverage by insurers or other small business owners.
What is a Business Owner’s Policy?
A small business may have many areas of risk they want to address. It might be more affordable and convenient to get a Business Owner’s Policy—an insurance package that protects your business against many of the common risks it faces every day.
Business Owner’s Policies (often shortened to BOP) combines General Liability with other common types of coverage. Your BOP can be customized to fit the unique needs of your business. This may include insurance to protect you against unplanned business interruptions, breakdown of equipment, or client property left in your custody.
BOP vs General Liability: Do I need both?
As mentioned above, a Business Owner’s Policy includes General Liability in its insurance package. A BOP may provide suitable types of coverage if you need to address general liabilities plus protect your inventory, business equipment, building where you work and other parts of your business.
For other businesses, a General Liability policy may be all that’s needed. This will depend on how you work, the services you provide, and other factors that are unique to your business. Making a list of the risks you are likely to face could help you decide if you want a BOP vs a General Liability policy.
Insurance for your small business
Are you considering a Business Owner’s Policy vs General Liability insurance for your business? BizInsure may be able to help. Our licensed customer support agents can answer your questions about these types of coverage and get you quotes from top-rated insurers in minutes.