Difference Between Business Owners Policy & General Liability Insurance

​Commercial General Liability (CGL) insurance differs from a Business Owners Policy (BOP) in that the former covers just liability losses while the latter covers both property and liability damages. Continue reading to learn about the difference between these policies to know which applies to you.

What Is a BOP Policy?
You may need insurance against property and liability claims to run a profitable business. That is why the vast majority of business owners purchase general liability insurance. 

A Business Owner's Policy is the simplest way to purchase general liability insurance (BOP). It combines commercial property and company income protection with general liability protection, which include:

General Liability Insurance
General liability insurance should shield you against lawsuits alleging that your company caused physical harm or property damage. It might also help you defend yourself if you are sued for advertising damage.

Commercial Property Insurance
Commercial property insurance may cover everything, whether you own or lease your business's physical premises and equipment.

Business Income Insurance
If your business is temporarily closed due to damage from a fire, business income insurance might help you restore your lost revenue. Extra expenditures incurred due to employee absences might be covered by your company income coverage.

What Is General Liability Coverage?
Unlike commercial property insurance, general liability insurance should only cover damage and injury to third parties caused by your business. It doesn't cover the damages to your company's property or employee injuries. This sort of commercial liability insurance protects you from lawsuits alleging:

Bodily Injury
Your company actions have resulted in bodily harm, including covering your clients' medical bills if they are hurt on your premises. If a consumer sues you for physical damage, general liability insurance might assist pay for your defense. The following are some instances of physical harm claims covered by general liability:

• A client hurts their ankle after tripping over a misplaced package in your business.
• Your waiter burns a customer by spilling hot coffee on them.

Property Damage
Property damage caused by your business can include an employee ruining a client's computer while working on it at their home.

Advertising Injury
Copyright infringement in your company's commercials, or something you do that hurts someone's reputation, might result in advertising injury. For example, if your employee utilizes artwork without authorization in a commercial. Also, in a press interview, if you mention something nasty about your rival.

Conclusion
Most general liability plans provide coverage for product liability, which safeguards you if your products cause property damage or bodily harm. It is critical since product liability lawsuits can cost your company tens of thousands of dollars. Certainly, general liability insurance is beneficial to all sorts of enterprises. 

At Robinsons Insurance Agency LLC, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (888) 254-7350. Get your free quote today by CLICKING HERE. The coverage discussed in this article is not guaranteed. Please call our agents, we are happy to help you learn more about your plan and make sure you have the coverage you need.