Small-scale business owners looking for insurance can purchase general liability insurance either as an individual policy or as an element of a comprehensive business owner’s policy (BOP).
What’s the definition of General Liability Insurance? General liability insurance is one type of small business insurance that pays out to other individuals who are legally responsible to them for injury or damage to their possessions.
Lenders, financiers, licensing boards, and commercial clients may need general liability insurance. Therefore, it’s essential for your business.
What Does General Liability Insurance Cover?
General liability insurance will protect your company in lawsuits for bodily harm or property damages. If you are sued by your company by a third party, your policy will pay for attorney’s fees, court costs, settlements, verdicts, and the claims covered under your insurance policy. Find out more about the general liability insurance will cover.
Injuries to your body caused by the business you run
The bodily damages that result from your company’s activities are covered by general liability insurance. In particular, it will help pay medical expenses if the client suffers injury on your business premises. If a customer sues the business, General liability insurance helps you with legal costs.
Damage to property caused by your company
The liability for property damage may arise from an employee damaging a client’s laptop, for instance, or a sign in outdoors that is thrown onto a customer’s vehicle. If a client’s property has been damaged due to your company, they could file a claim. General liability insurance can cover the cost.
“Personal injury” in the case of liability insurance isn’t an actual physical accident. It refers to topics including libel, slander, and defamation. They are protected as a regular element of General Liability Insurance.
General liability insurance could be able to cover copyright violations that occur in an advertisement for a business or damage someone’s reputation. As an example, let’s say you used artwork in an advertisement for a business without authorization or that you made an unflattering comment in a news interview with another business, which harms the reputation of that business. It is possible that you have caused publicity injury in such cases.
Business liability insurance doesn’t protect employees from workplace injuries as well as other employees employed by your company. Workers’ compensation insurance is for accidents at work.
What Is a BOP?
A business owner’s insurance policy (BOP) generally blends general liability commercial property insurance, general liability, and business interruption insurance in one insurance policy.
What you will get from a BOP.
General Liability Insurance
The policy covers the business when it comes to claims involving injuries to the body, damages to property, and personal injuries. If you are sued for any of these issues, the general liability insurance covers the legal defense of your business as well as any settlements and judgments in court up to the maximum of the policy.
Insurance for commercial property
The commercial property insurance component of the BOP will pay out in the event that the building or equipment of your company and furniture are damaged. This could include the property you own, leases, leases, or rents. This also includes repair and replacement of items that have been stolen or damaged.
Insurance for business interruption
Insurance for business interruption, also called business income insurance covers the loss of income for your business in the event that you have to close temporarily in the event of an issue that is covered under the policy, like a fire or storm. The coverage won’t cover losses in income due to circumstances that aren’t covered by the policy, like flooding (you’ll have to purchase additional protection for flooding-related issues).
BOPs BOP may also provide to pay for income loss as well as expenses such as rent or pay. Based on the insurance company, the BOP might include other protection types. For example, Travelers offers additional coverage options like cybersecurity liability, equipment for contractors, and non-hired and hired auto.
How do you qualify to be a BOP?
Insurance companies take into consideration a variety of factors to determine if a particular business can be considered to be a BOP. These include the size of its principal site, the nature of the business, and its revenues. Insurance companies may also consider the financial strength of the firm as well as the construction of the building, safety features, and fire risks.
Are you unsure of which insurance policy you should purchase to protect your business? This is a comparison of the general liability insurance’s value with BOP.
What Coverage Do I Need in Addition to a BOP?
Business owner’s policies are an affordable insurance choice for small-sized business owners. You may also require additional coverage along with a BOP. A good example is a business owner’s policy doesn’t include the following:
- Commercial auto insurance
- Insurance for professional liability
- Insurance for workers’ compensation
Commercial auto insurance
Commercial auto insurance offers protection for vehicles you use for the purposes of your commercial. The insurance pays out in the event that the employee or you are in an accident with a vehicle when driving to the job.
Insurance for professional liability
Professional liability insurance will cover any claims you may face if you commit professional errors while working. Anyone who provides guidance offers recommendations, or represents the interests of other employees in their company should consider protecting their business through Professional liability insurance.
Insurance for professional liability can also be often referred to as insurance for errors and omissions.
Some occupations that might require risk insurance include:
- Graphic Designers
- Consultants in information technology
- Investment advisors
- Brokers and agents in the real estate industry.
- Software developers
- Insurance for workers’ compensation
Workers’ compensation insurance pays the benefits of employees who have suffered an illness or injury as a result of their job. The cause of injury may be an accident that causes a fall or slip while doing work. Infections can be triggered by the handling of chemicals in the workplace.
Workers ‘ compensation insurance is mandatory in many states. If you have only one employee, you could need to purchase workers’ compensation insurance for your company.
Cost of BOPs in comparison to. General Liability Insurance
General liability insurance policies cost approximately $42 per month. A BOP policy costs an average of $57 per month, According to Insureon. The cost of a BOP policy’s price differs depending on whether you opt for a more extensive amount of coverage. As an example, a BOP policy that comes with a larger protection limit for business interruption will cost more.