When comparing general liability insurance vs. a business owner’s policy (BOP), you’ll find some significant overlap in terms of what’s covered. However, there are key differences that are important for business owners to understand.
To help you make the best choice between general liability or business owner’s policy insurance policies, we’ll walk you through the differences and similarities between these types of coverage.
General liability insurance is one the most common types of insurance policies for small business owners and self-employed professionals. It helps pay for medical payments and property damage if someone other than an employee gets hurt or if your business is held responsible for damaging someone’s property.
It’s a combination of general liability and the following commercial property coverage:
Essentially, the key difference between a business owner’s policy vs. commercial general liability is a BOP helps pay for a wider variety of possible accidents and risks that a business is exposed to.
You can think of it this way: General liability insurance only covers certain liability losses. BOP covers those same liability and some losses to property that your business owns.
General Liability covers
Legal fees & defense costs
Business Owner’s Policy covers
Court & legal fees
Business income interruptions
General liability insurance covers a wide range of risks that many small business owners face every day.
Sometimes referred to as “slip and fall” insurance or commercial general liability (CGL), it can help cover some of the most common accidents that can happen at any business, like damage to someone’s property or customer injuries. It can also provide financial protection if you’re accused of slander or libel.
General liability insurance helps protect you from unexpected expenses when you’re held responsible for an accident at your business, including:
Learn more about general liability insurance coverage.
Almost every business can experience the types of accidents that general liability insurance covers. Most business owners get general liability insurance to make sure they’re covered for these basic risks.
Besides being a smart way to protect your business, general liability insurance is sometimes required to get a business license or rent commercial property. Additionally, some clients may require you to have this coverage before they agree to work with you.
The following examples show how different types of business owners can benefit from general liability coverage:
General liability can cost as little as $11 monthly or $128 annually for some businesses, but a number of factors — such as where your business is located, how many employees you have and the type of work you do — affect the exact price you’ll pay.**
At NEXT, 50% of our customers pay between $25 or less to $45 per month for general liability insurance. Businesses with a higher level of risk generally pay more than those with low-risk levels.**
A business owner’s policy (BOP) is actually a bundle that includes two types of business insurance: general liability insurance and commercial property insurance.
In addition to covering the same type of risks as general liability, like customer injuries and damage to someone’s property, it also covers events that affect equipment, inventory and the physical location of your business.
One of the key advantages of a business owner’s policy is that it saves money. Bundling two types of insurance into one package costs less than buying them separately.
With BOP coverage, you’ll get general liability and commercial property coverage to help protect your business finances.
General liability insurance can cover basic risks, like bodily injury and damage to someone else’s property. It also covers accusations of libel and slander.
Commercial property insurance can cover accidents involving business goods, gear, equipment and inventory. It can include business interruption insurance if your business is forced to close due to an event coverage by your policy .
Many businesses can benefit from having a business owner’s policy. Because it includes two types of insurance, it offers more coverage, usually with the added advantage of a lower price for bundling the policies together.
Regardless of what line of work you’re in, there’s a good chance that you could benefit from a BOP. Here are just a few examples from different professions:
NEXT customers automatically save up to 10% when choosing a BOP rather than purchasing general liability and commercial property insurance separately.
Most businesses need general liability insurance to protect against unexpected expenses involving customer injuries and damage to someone else’s property. Whether you choose a stand-alone general liability policy or a business owner’s policy, you get that coverage.
When comparing a business owner’s policy vs. general liability insurance, you can expect similar coverage for these types of risks:
While both types of insurance help cover expenses related to unforeseen accidents, a business owner’s policy offers more protection because it also includes commercial property insurance.
Similar restrictions apply with both a BOP and general liability insurance, such as:
No. Since a business owner’s policy includes general liability insurance, you won’t need both. Instead, you’ll just need to decide which option makes the most sense for your business.
General liability is recommended for most businesses. But not all businesses need a BOP.
Generally, a business owner’s policy may be a good fit for your business if you:
Read more about how to know when a business owner’s policy (BOP) is right for you.
At NEXT, we want you to be able to operate your business with confidence by knowing that you’re covered even if the unexpected were to happen.
Our small business insurance options are convenient and affordable.
We can set you up with a customized insurance package tailored to your needs. In addition to general liability insurance and business owner’s policies, we also offer workers’ compensation insurance, professional liability insurance, tools & equipment and product liability insurance to cover your business.
If you’re not sure whether general liability insurance or a BOP is right for you, we’re here to help.
Simply start a quote, answer a few questions and we’ll provide coverage recommendations. You can do everything 100% online in about 10 minutes, and you can get a certificate of insurance instantly.
Get your instant insurance quote today.
Business insurance is divided into different policies. We offer seven types so it's easy to design the coverage that fits your business.