When you’re running a small business, choosing the right type of insurance can feel overwhelming. Chances are, you need one of either General Liability (GL) Insurance or a Business Owners Policy (BOP). But which is the one that you need? The answer depends on the size of your business, the industry you’re in, and the risks you face. Let’s break it down.
What Is General Liability (GL) Insurance?
General Liability Insurance protects your business against claims involving:
- Bodily injury (e.g., someone slips and falls at your office)
- Property damage (e.g., you accidentally damage a client’s property)
- Advertising injury (e.g., you’re sued for slander or copyright infringement)
This type of insurance is often the first policy a business buys because it’s foundational coverage. Many landlords, clients, and licensing boards require it before they’ll work with you.
What Is a Business Owners Policy (BOP)?
A BOP bundles General Liability Insurance with commercial property insurance, and sometimes business interruption insurance. It’s designed for small to mid-sized businesses that want broad protection at a lower cost than buying each coverage separately.
A typical BOP covers:
- Everything included in General Liability Insurance
- Damage or loss of your business property (e.g., office furniture, computers, inventory)
- Loss of income if your business is forced to temporarily shut down due to a covered event (like a fire or major storm)
So, Which One Do You Need?
Here’s a quick guide to help you decide:
TABLE
Final Thoughts
If your business interacts with the public, owns property, or has employees, then insurance isn’t optional—it’s essential. GL insurance is a great starting point for protection against common lawsuits. But if you also need coverage for your property or want more comprehensive protection, a BOP could save you money and give you peace of mind.
Always speak with a licensed insurance agent who can evaluate your specific needs and guide you toward the right policy.