General Liability vs. Business Owners Policy

General Liability (GL) Insurance

General Liability is a basic form of business insurance that protects your business from common third-party claims, such as:

• Bodily injury — e.g., a customer slips at your premises.

• Third-party property damage — e.g., you accidentally damage a client’s property while doing work.

• Personal or advertising injury — e.g., claims of libel, slander, false advertising or copyright infringement.

• Legal defense and settlement costs if you get sued.

GL is often the minimum coverage many businesses need — especially service- or client-facing businesses. 

Business Owner’s Policy (BOP)

A BOP bundles several protections into a single package, combining:

• General liability coverage (all the protections from GL), plus

• Commercial property insurance — protection for your business property: building, equipment, inventory, supplies.

• Business interruption / income protection — so if a covered event (fire, theft, damage) forces your business to pause, BOP may compensate for lost income. 

In short: a BOP gives you liability and “first-party” protection — for your own assets and operations — not just protection against claims from others.

GL vs BOP — Key Differences & When to Use Which

If your business is mostly service-based, doesn’t own property or equipment, and interacts occasionally with clients — GL is often enough.
If you run a store, a workshop, a warehouse, a café, or anything with physical assets, inventory, or potential business interruptions — a BOP is usually the smarter option.

Why Many Small Businesses Prefer a BOP

• A BOP bundles multiple coverages — liability, property, business interruption — into one policy, often at a lower combined cost than buying each separately. 

• It gives broader protection: not just for third-party claims, but also for your own assets and revenues.

• It simplifies insurance management — one policy instead of many; easier renewals and less paperwork.

However, BOPs have eligibility conditions (often for small-to-mid-sized businesses, with certain size/industry criteria), and premiums tend to be higher compared to a bare-bones GL. 

When You Might Need Only GL — and When You Should Upgrade to BOP

GL-only may suffice if:

• You provide services without owning significant equipment or inventory.

• You work mostly offsite, travel to clients, or operate from a home office.

• Your operations don’t involve storing goods, using heavy equipment, or running a physical store/facility.

BOP is better when:

• You have a storefront, office, warehouse, workshop, or any physical location.

• You own inventory, equipment, tools, or expensive materials.

• Your business income would suffer heavily if operations stop due to property damage.

• You want broader protection for both liability risks and business-asset risks.

FAQ — Quick Answers for Business Owners

Q: Can I use both GL and BOP at once?
A: Generally not — a BOP already includes GL coverage. Buying both separately is redundant. 

Q: Is BOP always more expensive than GL?
A: Yes, but considering what you get — liability, property, and interruption protection — it often offers better value for businesses with assets. 

Q: Does BOP protect inventory or equipment theft/damage?
A: Yes — commercial property coverage in BOP protects business assets from fire, theft, vandalism, and other covered perils. 

Q: If I’m a freelancer or consultant working from home — do I need BOP?
A: Probably not. A standalone GL usually suffices, unless you also store equipment, inventory, or have clients visit your home office.

Q: What about employees or business cars — are those covered?
A: No. GL and BOP do not cover employee injuries (that’s workers’ compensation) or business vehicles (that’s commercial auto insurance). 

✅ Conclusion — Choose Based on Your Business Needs

GL Insurance is the foundation — minimal but essential protection against liability claims.
BOP is an expansion — combining liability protection with asset and income protection. For many small to mid-sized businesses with physical presence or assets, BOP offers more complete safety and peace of mind.

If you’re uncertain — think about what could hit you hardest: a customer lawsuit? A break-in or fire? A forced temporary closure? Match your biggest risks with the policy that covers them.

Ready to Protect Your Business? Get a Quote Tailored to You

Whether you need simple liability protection or full business coverage — we can help.
Fill out the form below to receive a custom quote and find out which policy fits your business best: a clean General Liability plan or a full Business Owner’s Policy.