As a business owner, you have many insurance options to protect your business in the event of damages, theft, lawsuits, and so on. With all these options, it becomes difficult to choose which business insurance policies to purchase vs. which to forego. Two of the many options that you have are general liability insurance and a business owners policy, both of which offer protection for your business but not quite in the same way. Read on to learn the difference between them and decide which is best for your business!
General Liability Insurance
A general liability policy is going to cover your most basic business insurance needs. Also known as business liability insurance, this policy protects you from general claims that any company could face; this includes claims regarding bodily injury, third-party medical costs, advertising injury lawsuits, and more. This coverage is typically required when entering into a contract with a third party or pulling permits in a city like Philadelphia. General liability coverage also provides legal representation and pays for covered damages caused by the business owner or an employee.
Business Owners Policy (BOP)
A business owners policy, on the other hand, typically includes general liability insurance as well as property insurance and business interruption coverage. Commercial Property insurance will compensate you in the event of damages to your business assets caused by fire, theft, or windstorms. Business Interruption insurance steps in to cover your business when it experiences and unexpected catastrophe and must close for a period of time. For example, if a tree falls on your building during a storm and forces you to close while repairs are made, business interruption insurance will help cover any lost wages while your doors are closed.
Business owners policies are great for small and mid-sized businesses as they offer a package of essential policies at a reduced cost. However, it’s important to note that a BOP does not cover professional liability, auto insurance, or worker’s compensation losses; these policies must be purchased separately as you will not receive any reimbursement for any losses that fall under such policy types.
Call Risk Averse Insurance in Media, PA to discuss your business or personal insurance.
Risk Averse Insurance is an insurance agency in Delaware County that specializes in providing high-quality insurance products at an affordable price.