When it comes to protecting your business, you may be wondering if a Business Owners Policy (BOP) or general liability insurance is the right choice for you. While both types of coverage offer protection for your company, there are some key differences between them. To help you make an informed decision, let's explore the similarities and differences between BOP and general liability insurance. A BOP is essentially a general liability policy with additional property protection.
It bundles several insurance policies into one package at a reduced rate. Depending on the needs of your company, a provider may offer additional coverage components or endorsements that can be added to general liability or BOP. This helps your business pay for lost revenues and ongoing expenses when a covered event forces you to pause operations and, in general, this coverage has a monetary or temporary limit. There is also a form of BOP designed for domestic businesses that, like a traditional BOP, covers general liability and property coverage. Most insurers already included an exclusion for communicable diseases in their policies, so during the COVID-19 pandemic, many companies were denied requests for business revenues when they were forced to close. Whether you choose a standalone general liability policy or a policy for business owners, you'll get that protection.
With BOP coverage, you'll get general liability and commercial property coverage to safeguard your company's finances. It also has commercial property insurance, which is self-coverage, meaning that it covers the properties and assets of the company that are owned and used for the company. General liability insurance safeguards your company by managing financial obligations that may arise when your company's negligence causes injury or damages property. When deciding between BOP and general liability insurance, it's important to consider the size of your business and the type of risks you face. If you're a small business owner with limited resources, a BOP may be the best option as it offers comprehensive coverage at an affordable rate.
However, if you're a larger business with more complex risks, then a standalone general liability policy may be more suitable. No matter which type of coverage you choose, it's important to understand what is covered and what is excluded from each policy. Make sure to read through the policy documents carefully and ask questions if there is anything you don't understand. This will help ensure that you have the right coverage in place to protect your business.