By Amanda Moss | Licensed Agent at Learnandserve.org | Powered by A Plus Insurance
When it comes to your business, having the right insurance coverage is important, however it can be overwhelming when trying to decipher which is the right coverage for you. Notice what general liability vs. business owners policy includes or excludes.
What Is General Liability Insurance?
General liability insurance is a type of business insurance that provides coverage for claims involving bodily injury, property damage, and personal or advertising injury caused by the business’s operations, products, or services. It helps protect businesses from financial loss due to legal claims or lawsuits.
General liability insurance (GLI) protects businesses from claims related to accidents, injuries, and negligence. This includes:
- Bodily Injury: Coverage for injuries sustained by third parties (e.g., customers, clients) due to business operations.
- Property Damage: Coverage for damage to others’ property caused by the business.
- Personal and Advertising Injury: Covers non-physical harm such as libel, slander, or copyright infringement.
Key Components of General Liability Insurance:
| Component | What It Covers | Example Scenario |
|---|---|---|
| Bodily Injury | Medical costs, legal fees for third-party injuries | A customer slips and falls in your store. |
| Property Damage | Damage caused to others’ property | You accidentally damage a client’s property. |
| Personal Injury | Non-physical harm (e.g., defamation) | A competitor claims you defamed them in an ad. |
| Advertising Injury | Infringement in marketing/advertising | You unintentionally use copyrighted content. |
Types of Businesses That Need General Liability Insurance:
| Business Type | Reason for Needing Coverage |
|---|---|
| Retail Stores | High customer traffic increases injury risks. |
| Contractors | Potential for accidental property damage. |
| Restaurants | Risk of slips, falls, or food-related injuries. |
| Consulting Firms | Protection against personal/advertising injury. |
General Liability Insurance: Coverage Components
Risk Factors by Business Type
Now interactive! (Beta)
The first chart shows a breakdown of the different components of general liability insurance coverage, with bodily injury and property damage making up the largest portions of coverage needs.
The second chart highlights the risk factors for different types of businesses. Retail stores, for example, have the highest risk factor due to high foot traffic, while consulting firms have a lower risk factor related to personal and advertising injury.
These visuals help illustrate how general liability insurance protects businesses across various industries and against multiple types of risks
How to Get a Free Quote – Business Owners Policy
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Contact Us
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Details
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Quote
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Decision
What Is A Business Owners Policy?
A Business Owners Policy (BOP) is a type of insurance policy that is specifically designed for small to medium-sized businesses. It combines several different types of coverage into one single package, offering a comprehensive insurance solution for business owners.
There are 3 main coverages:
| Property Insurance | Protects physical assets of your business like a building or furniture against losses caused by fire, theft, vandalism, or other covered perils |
| General Liability Insurance | Protects your business from claims arising from bodily injury or property damage caused to customers, vendors, or the general public due to your business operations |
| Business Interruption Insurance | Protects the financial impact of a temporary shutdown or disruption to your business operations due to a covered event |
What Are The Similarities And Differences Between General Liability Vs. Business Owners Policy?
There are more differences than there are similarities with general liability vs. business owners policy.
Similarities:
Both General Liability Insurance and a BOP provide liability coverage
Both policies typically include coverage for legal defense costs associated with liability claims. This can help cover attorney fees, court costs, settlements, or judgments.
Differences:
General Liability Insurance focuses solely on liability protection. It does not include coverage for property or business interruption. BOP combines liability coverage with property insurance and often includes business interruption coverage, which helps compensate for lost income/ongoing expenses if your business operations are temporarily disrupted due to a covered event.
A BOP is a packaged policy that combines multiple coverages into a single policy, more convenient and cost effective. General Liability Insurance is a standalone policy solely focused on liability coverage.
General Liability Insurance policies can be tailored to some extent by adding optional endorsements or additional coverages. BOP offers a more comprehensive package with pre-packaged coverages, making it a convenient choice for small to medium-sized businesses that want a standardized yet broad insurance solution.
OTHER HELPFUL LINKS
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Last Updated on by Marlon Moss