Did you know that as many as 75% of all businesses in America are underinsured today? Startup and small business owners often don’t see the point of insurance because they can’t imagine what would happen that would lead to liability. However, because these unforeseen events can become expensive, it’s better to have insurance that you never need than to need one that you never got.
Finding the right kind of coverage to protect your business is critical. In this article, we’ll break down the difference between a business owner’s policy vs. general liability insurance. Read on to see which one your business needs.
In this article
General Liability Insurance
General liability insurance is one of the many business insurance policies you can take out for your business. It’s meant for instances where your business could be held liable under Tort Law. Examples of such liabilities include injuries that may occur on your premises or any property damage your operations may cause others.
General liability insurance doesn’t cover property damage caused by freak accidents or natural disasters. It also doesn’t cover loss of income due to interruptions. Business owners need to get separate business insurance policies to cover these risks.
Business Owner’s Policy
A business owner’s policy (BOP) is a blanket insurance policy covering all three risks mentioned above. With a BOP, you get liability cover for legal liability risks. You get property insurance for accidents (from fires to hurricanes) and theft too.
BOPs also come with insurance against loss of income. This is when a strike, accident, or theft blocks you from doing business for a while. The best part is that the bundle is cheaper than independently getting each of these policies.
You can also extend a BOP to include other types of insurance. The most important forms are data breach insurance and worker’s compensation insurance. These apply most universally and are likely to cause significant problems for the uninsured.
Business Owner’s Policy vs. General Liability Insurance
A BOP is a comprehensive cover that includes many different types of insurance in one bundle. General liability insurance is one sub-type of insurance in the bundle. However, there are also differences between a BOP and the more standard versions.
Firstly, the BOP version will never be as good as an expensive standalone general liability insurance. Furthermore, few out of every odd business fits the bill for a BOP. Only small businesses in low-risk industries can access BOPs.
Luckily, that second point still applies to most businesses today. If you want the best business insurance in Lancaster, Pa., just click the link.
Get the Best Insurance for Your Business Today
If you’re wondering which insurance type fits your business better, between a business owner’s policy vs. general liability insurance, you must weigh the pros and cons. A BOP is standardized and affordable, but its one-size-fits-all nature makes it difficult to personalize. An excellent general liability policy can fit your business needs ideally, but then you have to get every other type of insurance separately.
Making the right decision can protect your business from a lot of trouble. Strengthen your business even more by reading more of our business blog content.