Does a Business Owner’s Policy Cover General Liability?

Does a Business Owner’s Policy Cover General Liability?

Getting a business owner’s policy in Astoria, NY, is the right solution for a wide range of small-to-medium organizations. Commonly referred to as BOP, a business owner’s policy covers a mix of risks, including liabilities such as bodily injury and property damage to others. Here’s a look at how BOP can protect your business assets.

What’s BOP and How Does it Help Business Owners?

Commercial property and general liability insurance in Astoria, NY, are packaged together to form the core of BOP. The policy also includes business income protection if your workplace is devastated by a disaster. Commercial property insurance is important for property owners and tenants who rent or lease space.

It’s essential to have some financial protection in place for the valuable belongings you store at your premises. BOP protects your equipment, furniture, and anything else you own within the establishment. The types of disasters that are covered are listed as ‘perils.’

Various liabilities are covered in case your business winds up in a lawsuit from a customer or partner. Many new and even experienced businesses become entangled in litigation they were not expecting. A competitor might accuse you of infringing on their intellectual property if you come up with a similar advertising campaign. You can also be sued for defamation if someone doesn’t like what you’ve written about them in blogs or on social media.

BOP starts as a basic plan that you can customize with insurance extensions. A major advantage of choosing a BOP plan is that you can cut insurance costs, similar to bundling plans together.

Understanding General Liability Coverage

General liability coverage is purchased by a wide range of industries as a foundation for business insurance. It pays for hospital bills for someone who visits your establishment and suffers an injury or develops an illness. Remember, slipping and falling can occur anywhere, especially during winter months when slippery surfaces become common. Businesses that use hazardous chemicals need to be extra careful to keep visitors away from such areas.

Commercial Property Vs. BOP Coverage

Some businesses may use commercial property insurance as their core protection, especially if they own land or buildings. From there, they may add the same extensions as one might with a BOP plan. The advantage of BOP is that it gives a broader range of coverage as your base.

Similarities Between BOP and General Liability

Keep in mind BOP is a combination of general liability, commercial property, and business income insurance. So, various types of liabilities are covered under both plans. Both can provide sufficient liability coverage based on the dollar amount limits you set. Some of the overlapping extensions commonly added to either plan include workers’ compensation, professional liability, commercial auto, and cyber insurance.

  • Workers’ compensation – pays for employee accidents or illnesses and loss of income for the time they cannot work.
  • Professional liability – pays for errors made by executives.
  • Commercial auto – pays for bills related to a company auto crash.
  • Cyber insurance – pays for damage caused by cybersecurity breaches.

BOP is popular with small businesses and companies that like to simplify insurance. As you decide on the coverage you need for your business, remember to think about customization. Consider the risks your business faces, then customize your policy accordingly. If you have any questions regarding the diverse types of business insurance in Astoria, NY, our team at 01 Insurance is ready to help you.