General Liability vs. Business Owners Policy (BOP) in Georgia: What’s the Difference?

If you own a small business in Georgia, you've probably heard the terms General Liability Insurance and Business Owners Policy, commonly called a BOP.

But what's the difference?

And more importantly, which type of business insurance does your company need?

Although both can provide important liability protection, they are not the same.

At Jones Group Insurance Services, we help business owners in Acworth, Kennesaw, Marietta, Canton, Woodstock, Atlanta, and throughout Georgia understand their commercial insurance options and choose coverage based on how their businesses actually operate.

What Is General Liability Insurance?

Commercial General Liability Insurance (CGL) is designed to protect your business against certain claims involving bodily injury, property damage, and personal and advertising injury.

For many businesses, general liability is one of the most important foundational insurance policies.

For example, imagine a customer visits your business, slips on a wet floor, suffers an injury, and claims your business is responsible.

Or perhaps your employee accidentally damages a customer's property while performing a job.

Depending on the circumstances and terms of your policy, your general liability insurance may help with covered claims and legal defense expenses.

What Does General Liability Insurance Cover?

A commercial general liability policy may provide coverage for claims involving:

• Third-party bodily injury

• Third-party property damage

• Personal and advertising injury

• Certain product-related claims

• Certain completed operations claims

• Medical payments

• Legal defense expenses for covered claims

The exact coverage depends on your individual policy, endorsements, exclusions, limits, and the type of business you operate.

What Doesn't General Liability Insurance Cover?

This is where business owners sometimes get confused.

General liability insurance does not protect everything your business owns.

For example, a general liability policy by itself generally isn't designed to insure:

• Your building

• Business furniture

• Computers

• Business equipment

• Inventory

• Your own business property against fire or theft

• Lost business income following a covered property loss

• Commercial vehicles

• Employee workplace injuries

• Professional errors or negligence

Additional policies or coverages may be necessary for these exposures.

What Is a Business Owners Policy (BOP)?

A Business Owners Policy, or BOP, combines multiple types of business insurance into one package.

A typical BOP combines:

General Liability Insurance + Commercial Property Insurance + Business Income Coverage

This makes a BOP attractive to many qualifying small and midsize businesses because you can obtain several important protections within one policy.

What Does a Business Owners Policy Cover?

Depending on the insurance company and policy, a BOP commonly includes:

General Liability

This portion provides liability protection for certain bodily injury, property damage, and other covered liability claims.

Commercial Property

Commercial property coverage can help protect qualifying property your business owns, such as:

• Buildings

• Furniture

• Computers

• Equipment

• Inventory

• Supplies

• Other covered business personal property

Coverage varies based on the policy and property insured.

Business Income

Business income coverage can become extremely important following a covered property loss.

For example, suppose a fire causes significant damage to your business location and you're unable to operate for several months.

Depending on the policy and circumstances, business income coverage may help replace qualifying lost income and cover certain continuing operating expenses while your business recovers from the covered loss.

General Liability vs. BOP: What's the Biggest Difference?

Here's the easiest way to remember it:

General Liability = Protects Your Business From Certain Claims Made by Others

General liability primarily focuses on your business's liability to third parties for covered bodily injury, property damage, and certain other claims.

BOP = Liability + Your Business Property + Business Income

A Business Owners Policy generally provides broader protection by packaging liability coverage with commercial property and business income coverage.

So if you're deciding between general liability vs. a BOP, ask yourself:

“Do I only need liability protection, or do I also have business property and income that I need to protect?”

Example: When General Liability May Make Sense

Imagine you're a contractor who travels to customers' locations and has no office, storefront, or significant business property.

Your primary concern may be liability arising from your operations.

Depending on your business and contractual requirements, a standalone general liability policy may be appropriate.

However, contractors often have tools and equipment that may require separate inland marine or equipment coverage.

That's why your entire operation should be reviewed rather than assuming general liability covers everything.

Example: When a BOP May Make Sense

Now imagine you own a retail store in Marietta, Georgia.

You have:

• Inventory

• Computers

• Furniture

• Business equipment

• A physical storefront

• Customers regularly entering the premises

In this situation, you may need both liability and property protection.

A Business Owners Policy may provide a convenient way to combine those important coverages.

Is a BOP Better Than General Liability?

Not necessarily.

The better policy is the one that appropriately protects your particular business.

Some businesses may only need standalone general liability.

Others may benefit from a BOP.

And some businesses have risks that don't fit within a standard BOP and require separate or specialized commercial insurance policies.

Your industry, revenue, property, number of employees, business location, operations, and insurance carrier underwriting requirements can all affect your options.

Does a BOP Include Workers' Compensation?

Generally, no.

Workers' compensation is typically a separate policy.

If your business has employees, you should evaluate whether workers' compensation insurance is required or appropriate for your company.

Does a BOP Cover Commercial Vehicles?

Generally, no.

If your business owns or uses vehicles for business purposes, you may need a separate commercial auto insurance policy.

Don't assume your BOP automatically protects your business vehicles.

Does a BOP Include Professional Liability?

Generally, professional liability is not automatically included in a standard BOP.

If your business provides professional advice or specialized professional services, you may need Professional Liability or Errors & Omissions (E&O) Insurance.

Who Should Consider a Business Owners Policy?

A BOP may be worth considering for qualifying:

• Retail stores

• Offices

• Restaurants

• Beauty and personal care businesses

• Small service businesses

• Professional offices

• Certain contractors

• Small wholesalers

• Other eligible small and midsize businesses

Eligibility varies significantly by insurance company.

Who Needs General Liability Insurance?

General liability coverage may be important for businesses including:

• General contractors

• Electricians

• Plumbers

• HVAC contractors

• Landscapers

• Painters

• Welders

• Cleaning companies

• Restaurants

• Retail businesses

• Consultants

• Mobile businesses

• Property owners

• Small businesses

Your landlord or a company you're performing work for may also require you to provide a Certificate of Insurance showing specific general liability limits.

General Liability Insurance for Georgia Contractors

Contractors have unique insurance exposures.

A contractor may need more than just general liability, including:

• Workers' compensation

• Commercial auto

• Tools and equipment coverage

• Inland marine

• Commercial umbrella

• Builders risk

• Professional liability for certain operations

At Jones Group Insurance Services, we look at the overall operation to help business owners identify insurance needs beyond simply purchasing one policy.

General Liability Insurance in Acworth, GA

If you're looking for general liability insurance in Acworth, Georgia, Jones Group Insurance Services can help you compare options based on your industry and business operations.

Whether you're starting a new company or reviewing existing coverage, we'll help you understand what you're purchasing.

Business Insurance in Kennesaw, GA

We help businesses looking for general liability insurance and Business Owners Policies in Kennesaw, Georgia.

From contractors and service companies to offices and retail businesses, we can help evaluate your liability and property insurance needs.

General Liability Insurance in Marietta, GA

If you're searching for business insurance in Marietta, Georgia, we can help determine whether standalone general liability or a BOP may be appropriate for your operation.

Business Insurance in Canton, GA

Jones Group Insurance Services assists businesses looking for general liability insurance in Canton and Cherokee County.

As your business grows, your insurance should be reviewed to make sure your coverage continues to reflect your operations.

Business Insurance in Woodstock, GA

Looking for small business insurance in Woodstock, Georgia?

We can help Woodstock business owners evaluate General Liability, Business Owners Policies, Commercial Auto, Workers' Compensation, and other commercial insurance options.

Business Insurance in Atlanta, GA

We also assist companies searching for business insurance in Atlanta, Georgia, including general liability and other commercial insurance products.

Whether you're a new entrepreneur or an established business owner, we'll take the time to understand your operation before recommending coverage.

Business Insurance Throughout Georgia

Jones Group Insurance Services isn't limited to one city.

We help eligible businesses throughout Georgia with commercial insurance needs.

Whether you're located in Acworth, Kennesaw, Marietta, Canton, Woodstock, Atlanta, or another Georgia community, we're available to help you evaluate your business insurance.

General Liability or BOP: Which One Should I Choose?

Start by asking these questions:

Do I own business property?
If you have equipment, furniture, inventory, or a building, you may need commercial property protection in addition to liability.

Could my business lose income after a fire or other covered property loss?
Business income coverage may be important.

Do customers visit my business?
Liability protection should be an important consideration.

Do I perform work at customers' locations?
Your liability exposure may be significant even without a storefront.

Do I have employees?
Workers' compensation should also be evaluated.

Does my business own vehicles?
You may need commercial auto insurance.

The right insurance program depends on the complete picture.

Don't Choose Business Insurance Based Only on Price

The least expensive policy isn't necessarily the best policy for your business.

A low premium can become very expensive if you discover after a loss that an important exposure wasn't covered.

Before purchasing business insurance, understand:

• What's covered

• What's excluded

• Your liability limits

• Your property limits

• Your deductibles

• Whether business income is included

• Whether additional endorsements are needed

Looking for General Liability or a Business Owners Policy in Georgia?

At Jones Group Insurance Services, we help Georgia business owners understand their coverage options before a claim happens.

If you're looking for General Liability Insurance or a Business Owners Policy in Acworth, Kennesaw, Marietta, Canton, Woodstock, Atlanta, or throughout Georgia, contact us today.

Request a Georgia Business Insurance Quote

Not sure whether your business needs General Liability Insurance, a Business Owners Policy, or additional commercial coverage?

Contact Jones Group Insurance Services today for a business insurance quote.

We'll learn about your business, review your exposures, and help you explore coverage options designed for the way your company actually operates.