General Liability vs. Business Owners Policy (BOP) Insurance

Businesses often rely on a multitude of insurance policies to protect their financial interests and ensure legal compliance. While companies’ exact coverage needs typically vary depending on their unique circumstances, such as industry, location, size and other unique circumstances, several insurance products may transcend such specificity and hold value for many businesses. General liability insurance and business owners policies (BOPs) are particularly versatile and common coverage solutions.

What Is General Liability Insurance?

General liability insurance can live up to its name by offering a versatile financial shield that can potentially help policyholders address many common incidents and subsequent losses. Specifically, these policies focus on helping companies absorb losses and expenses arising from incidents affecting third parties, including clients, guests and members of the general public.

General liability insurance may cover the following incidents affecting others:

• Bodily injuries, such as if a customer is harmed while visiting your business
• Property damage, such as if you dispatch an employee to a client’s home or business, and they inflict damage
• Personal and advertising injuries, such as if you cause reputational harm through slander or libel

What Is BOP Insurance?

A BOP is a multifaceted insurance solution that bundles several types of coverage under a single policy. General liability insurance is typically a key component of most BOPs. What makes a BOP different is that it also can include additional types of insurance while potentially offering a cost-effective and convenient way to address multiple coverage needs.

Beyond general liability coverage, BOPs can also often include the following:

• Commercial property insurance can assist with costs to rebuild, repair, restore or replace your businesses physical assets, such as its building, electronics, equipment, furniture and inventory.
• Business interruption insurance can help your company replace lost income and manage ongoing expenses if you are forced to close or delay operations due to a covered incident.

While BOPs may offer a valuable way to address multiple coverage needs, they may be available only to small- and medium-sized businesses in low-risk industries.

We’re Here to Help

Contact Huddleston Insurance Services in Lancaster, CA, today to discuss general liability insurance and BOPs. Our team can help you find the right coverage for your business.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.