What Is The Difference Between Commercial General Liability Insurance And A Business Owner’s Policy

The agents of Allegiance Insurance in Agency Richardson, TX will help you make an informed decision of your coverage options for liability insurance that fits your business plan. The type of liability insurance depends on the risk characteristics of your business or profession.  It is essential that there is a basic knowledge of the types of liability insurance coverage with the purpose of adding new coverage as the business changes and expands.  

General liability insurance covers any expenses related to non-employee injuries incurred on the business’s property, libel and slander caused to a third-party, third-party bodily and property damages, medical expenses, product liability, damage you cause to someone else’s property and the costs of defending against a lawsuit and paying for settlements or judgments.  General liability does not cover professional errors, employee injuries, damage to your business property and employment discrimination lawsuits. The risks not covered by general liability is covered by specific general liability policies such as professional liability (errors and omissions), business interruption insurance, business theft, and worker’s compensation.  These policies must be added to the general liability policy.

However, a Business Owners Policy (BOP) is a bundle of policies that more effectively protect the small business at a lower cost can.   A BOP is a combination of general liability insurance and business property insurance, and business interruption. A  BOP  provides a named-peril coverage, while an open peril or "all risk" coverage can be purchased. Thus a BOP, unlike general commercial liability insurance, the business owner can recover from business property damages caused by others. Crime insurance can be added to a BOP.  However, worker’s compensation and professional liability are typically separate policies.

The agents of Allegiance Insurance Agency in Richardson, TX are prepared to provide you with information on business liability insurance.  Please call!