Business Owners Policy vs. General Liability Insurance

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As a small business owner, you may understand the need for insurance and protecting yourself and your business. The hard part, however, is figuring out the best insurance coverage for you. If you have done any research, you may have determined the two main ways to cover your business - General Liability insurance or a Business Owner's policy. Which one is best for you? Let's break it down.

What is General Liability insurance?

The most significant risk that comes with being a small business owner is third parties bringing a suit against you. General Liability insurance is there to provide protection against those third parties should they get hurt and develop a bodily injury. It also covers third party property damage and advertising liability, such as slander or libel. With the internet and social media, these things have a way of happening even if you don't mean for it to occur. The best part, and most often utilized, is attorneys fees, defense costs, and settlement costs. Even the most careful business owner can be sued, and small businesses cannot afford to pay these hefty legal expenses.

What is a Business Owner’s Policy?

Another policy you probably have heard about and considered is the Business Owner's policy or BOP. Essentially, a BOP is a General Liability policy on steroids. It has General Liability insurance of course, but also includes some property coverages such as building and business personal property. A BOP is an affordable and easy way to cover your small business for these critical risks. In addition, you can add coverage for business interruption, so that if a covered claim does occur, you can keep your business running while it is repaired.

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What do Business Owners and General Liability insurance have in common?

As stated above, a BOP has General Liability insurance as part of its policy. Think of it as an umbrella covering both General Liability and Commercial Property insurance. The greatest thing they have in common is the defense costs coverage. Regardless of whether you or your business is found guilty in a lawsuit, the legal fees can add up quickly. So, whether you go for General Liability or the BOP, you can rest assured that you will be covered for these expenses no matter what. Liability.

Business Insurance

Running a business is challenging enough without having to worry about lawsuits, employee injuries or property damage. Having the right insurance gives you the peace of mind to focus on what matters - running your business.

The coverage you need depends on the type of business you run. A restaurant owner needs to be covered against customers possibly getting food poisoning while an accountant needs to be covered against calculation errors. CoverWallet's intelligent assessment system will identify the insurance you need based on your specific business, get you a policy that fits your budget, and do it all in less time than you think.

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