Business Owner’s Policy vs General Liability Insurance

Business owner’s policy (BOP) and general liability insurance are two of the most crucial insurance options for small businesses in Tennessee. It’s important to understand the differences between these coverages to help you make informed decisions about your business policy.

What Is General Liability Insurance?

General liability insurance is a foundational policy for many businesses. It may help cover claims related to:

• Third-party bodily injury
• Third-party property damage
• Personal and advertising injury, including claims of libel or slander

Many landlords, clients and contracts require this coverage. It is a smart choice for any business that interacts with the public, owns or rents space or advertises its services.

What Is a Business Owner’s Policy?

A business owner’s policy is a package policy designed for small to mid-sized businesses. It combines various coverages into one convenient policy, typically including:

• General liability insurance (as described above)
• Commercial property insurance, which may help financially protect your building, equipment and inventory from covered events like fire or theft
• Business interruption insurance, which may help replace lost income and pay for ongoing expenses if your business must temporarily close due to a covered loss

A BOP can be customized with additional options, such as cyber liability or professional liability coverage, to better meet your needs.

Which Policy Does My Business Need?

The right choice depends on the types of risks your business faces and the level of coverage you need. If your operations are relatively simple and your primary concern is potential lawsuits from customers or third parties, general liability insurance may be sufficient. However, if your business owns or leases physical assets, relies on equipment or inventory, or could be financially impacted by a temporary shutdown, a BOP may be a better fit. Many small businesses start with general liability and later transition to a BOP as they grow and their risk exposure increases.

Contact Our Team

ISG Auto Insurance can assess your situation and recommend suitable business policies. Contact us today to schedule a consultation or request a personalized quote.

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.