BOP vs. General Liability: What’s the Right Fit for Your Business

Choosing the right insurance coverage is crucial for financially protecting your business from unexpected risks. Two common options are a business owners policy (BOP) and general liability insurance. While they may seem similar, they serve different purposes and suit different types of businesses.

BOP vs. General Liability Insurance

General liability insurance is a foundational policy that covers third-party claims involving bodily injury, property damage and advertising injury. It’s ideal for businesses that interact with clients in person, work on client property or advertise their services.

A business owners policy (BOP), on the other hand, bundles general liability insurance with property insurance and often includes business interruption coverage. This makes it a more well-rounded option for small to mid-sized businesses that own physical assets like buildings, equipment or inventory. A BOP is typically more cost-effective than purchasing each policy separately and is best suited for businesses with a physical location.

So, which is right for you? If your business is home-based or service-oriented with minimal physical assets, general liability insurance might be sufficient. However, if you own property, rely on equipment or want broader protection, a BOP could be the smarter choice.

Ultimately, the best fit depends on your business’s size, industry and risk exposure. Consulting with an insurance professional can help tailor coverage to your specific needs, helping to financially protect your business from all angles.

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For business insurance guidance, contact Alliance Insurance & Realty.

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.