General Liability vs. BOP: What Are the Main Differences?

Insurance is essential for businesses that want to maintain financial security and stability. Two common options are general liability insurance and a business owners policy (BOP). Pacelli Insurance can help business owners compare these choices and understand how each applies to their operations.

What Is General Liability Insurance?

General liability insurance may cover third-party claims of bodily injury, property damage or personal and advertising injury that result from your business activities. For example, if a client trips over equipment during a service call or if you accidentally damage a customer’s property while completing a project, general liability insurance can assist with legal costs and settlements.

Landlords, clients or contractors often require general liability insurance before letting you sign a lease, start a project or enter into a business agreement.

What Is a Business Owners Policy (BOP)?

A business owners policy (BOP) combines general liability insurance with property insurance and other types of coverage in one package. A standard BOP typically includes:

• General liability insurance
• Commercial property insurance to cover buildings, equipment and inventory
• Business interruption insurance to help replace lost income during a temporary closure caused by a covered event

Many insurers allow BOPs to be customized with additional features, such as data breach coverage or equipment breakdown insurance, depending on your business needs.

Main Differences Between BOP and General Liability Insurance

While both policies may cover various business risks, they differ in scope, cost and eligibility. Here’s how they compare:

• Scope of coverage—General liability focuses on third-party claims, while a BOP combines that with property and business interruption coverage.
• Cost—A BOP can offer savings compared to purchasing separate policies; however, it may not be necessary for businesses that do not own significant property or inventory.
• Eligibility—Not all businesses qualify for a BOP. Eligibility often depends on factors such as industry, revenue and workforce size.

We’re Here to Help

Pacelli Insurance can help you assess your risks and explore suitable insurance options for your Pennsylvania business. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.