BOP vs General Liability: Which Do You Need?

Understanding the difference between a Business Owner's Policy (BOP) and standalone General Liability insurance helps you make smarter coverage decisions. General liability covers third-party claims for bodily injury, property damage, and advertising injury. A BOP bundles general liability with commercial property insurance and often business interruption coverage—typically at a lower price than buying each policy separately.

What General Liability Covers

General liability insurance is essential for any business that interacts with customers, clients, or the public. It protects you when someone gets hurt at your location, when you accidentally damage client property, or when you're accused of slander or copyright infringement. However, GL insurance does NOT cover your own business property, equipment, or inventory.

What a BOP Includes

A Business Owner's Policy makes sense if you have physical assets to protect. If you own equipment, inventory, furniture, or lease an office space, the property coverage in a BOP protects these assets from fire, theft, vandalism, and other covered events. The business interruption component helps replace lost income if you can't operate due to a covered property loss.

The Value of Bundling

For many small businesses, a BOP offers better value than separate policies. Insurance companies bundle these coverages because businesses that need liability protection often need property coverage too. The bundled price is typically 15-25% less than purchasing general liability and commercial property insurance individually. It's convenience and savings in one package.

Which Is Right for You?

So which do you need? If you're a home-based consultant with no equipment or inventory, standalone general liability may be sufficient. If you have a storefront, office, or valuable equipment, a BOP is usually the smarter choice. SmartInsured can help you compare options and find the right fit. Get your personalized quote in minutes.