General Liability Insurance vs BOP
Every business owner understands the importance of obtaining insurance to protect themselves and their company. However, which type of policy they need is not always clear. For liability coverage, businesses have two options available to them: General Liability Insurance or the more expansive Business Owner’s Policy (BOP). Each type of insurance has its own benefits. Which one suits a business owner’s needs depends on the type of financial protection they require.
What is General Liability Insurance?
This type of insurance offers comprehensive coverage for several common issues business owners may face such as:
- Slander, libel, etc.
- Property damage
- Bodily injuries
No matter how carefully a business owner operates his or her business, they are likely to face one or more of these types of claims. General liability insurance helps business owners pay for lawyer expenses, court costs, and settlements.
What is a BOP?
A BOP is a more robust version of a General Liability Insurance policy. It combines several types of policies into one bundle at a reduced cost. BOPs provide:
- General Liability Insurance
- Property Insurance
- Business Interruption Insurance
This means in addition to general liability coverage, a BOP provides compensation for property damaged by fire, wind, or theft. Should unforeseen events force a business owner to stop business operation for a short period of time, this policy compensates for lost income as well.
However, not everyone qualifies for a BOP. To be eligible, the individual must own a small business, work in a low-risk industry, and require a year or less of Business Interruption Insurance. To learn more about these policies and which would work best for your business, contact The Reilly Group. We can also help your business identify risks as well as implement solutions to mitigate them.