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May 10, 2023

Major Differences between Businessowners’ Policy and General Liability

No matter what your business is, it’s important to have protection from perils. But we get it--understanding which type of coverage is best can be confusing!

Many businesses need protection from property and liability claims. The easiest way to obtain this coverage is by purchasing a Businessowners’ Policy (BOP). A Businessowners’ Policy bundles property and business income coverage with general liability coverage into one. BOP insurance can help cover your business from claims resulting from things like fire, theft or other covered disasters as well as claims of bodily injury, property damage, and personal and advertising injury. Some examples include:

  • An electrical fire causes your second floor to sustain damage.
  • Loss of income while you rebuild your business after the fire.
  • Robbers break open your business door and steal computers and merchandise.
  • A client sues your business for faulty appliance installation.

If you are not a business that owns their own building, you may be wondering: “Why would I get a BOP then if I could get general liability coverage?” General Liability insurance can cover damage and injuries your business causes to a third party. Some examples include:

  • A customer trips over a misplaced box in your store and sprains their ankle.
  • A lawnmower driven by your landscaper kicking up a rock that breaks a customer’s window.
  • Your employee uses artwork in an advertisement without correct permissions.

General Liability coverage has a purpose and fulfills a need - some people don't need property coverage, and that's okay.  But if you don't work exclusively out of your living room for yourself, you may have stuff that you aren't considering as needing to have covered. The benefit of a BOP is that property and liability are built into it, so you don't have to purchase those coverages separately.  

Getting the right coverage is all about you–the small business owner– and your tangible investments into your business.  It's there for when your stock has smoke damage or when that hurricane rips your roof off. It's there when the local authorities have closed off traffic around your business because of a situation at the place next door. Your job is to tell us how much all of your stuff costs, and our job is to protect you when the chips don't fall in your favor.  It's important to tell us how much all of your stuff costs though, because we need to make sure that budget is available for when that rainy day does happen. Your agent’s job is to help lead you to the best option for your business and your budget so you can be there for your community for a long time to come!

*While Attune can’t advise on a case by case basis, we hope this overview will provide some useful info. This blog is intended for educational purposes only.  This is not an indication or confirmation of coverage. Any claims would need to be reviewed at the time of reporting.