If you're shopping for small business insurance, you'll quickly run into two options: a business owner's policy (BOP) and a standalone general liability policy. They overlap, but they're not the same.
The short answer
A general liability policy covers claims from third parties: injuries, property damage and advertising injury. A BOP includes general liability plus commercial property and business income coverage, packaged together, often at a lower combined cost.
Side by side
| Coverage | General liability | Business owner's policy |
|---|---|---|
| Third-party injury and property damage | Yes | Yes |
| Products and completed operations | Yes | Yes |
| Your building and equipment | No | Yes |
| Lost income after a covered property loss | No | Yes |
| Who it's built for | Any size or risk level | Small and mid-sized, lower-hazard businesses |
When a BOP makes sense
- You have equipment, inventory, furniture or a build-out worth protecting
- Your operations are relatively standard, like an office, shop or service business
- You want one policy, one renewal and one bill
When standalone general liability makes sense
- You don't have significant property to insure
- Your business is too large or too high-risk for a carrier's BOP program
- Your property is complex enough to need its own policy
What neither one covers
Neither a BOP nor general liability covers employee injuries (workers' comp), business vehicles (commercial auto), professional mistakes (E&O) or most cyber events (cyber liability).
How to decide
For straightforward small businesses, you can compare options and buy a BOP online in minutes through our instant quote portal. If your business doesn't fit neatly in a box, or you're not sure, request a tailored quote and we'll recommend the structure that fits.
Frequently asked questions
Is a BOP cheaper than general liability?
A BOP usually costs more than general liability alone, because it includes property and business income. But it's often cheaper than buying those coverages separately.
Can I add workers' comp to a BOP?
No. Workers' compensation is always a separate policy, though we can coordinate it with your BOP.
This article is general information, not legal or insurance advice. Coverage depends on the terms, conditions and exclusions of the policy issued, and availability varies by state and carrier.