What is General Liability insurance?
General liability insurance covers a wide range of risks that many small business owners face every day.
Sometimes referred to as “slip and fall” insurance or commercial general liability (CGL), it can help cover some of the most common accidents at any business, like damage to someone else’s property or customer injuries. It can also help provide financial protection if you’re accused of slander or libel.
What does General Liability insurance cover?
A general liability insurance policy helps protect you from unexpected expenses when you’re held responsible for an accident at your business, including:
- Physical injury: Business liability insurance can help cover expenses related to physical harm caused to someone other than you or your employees. This is also called “bodily injury.”
- Property damage: This can cover damage to property belonging to someone else.
- Personal injury: This insurance can help cover damage to a party’s name or reputation. Libel, slander and defamation fall into this category, which is also known as “advertising injury.”
Who needs General Liability insurance?
Almost every business can experience the types of accidents that general liability insurance covers. Most business owners get general liability insurance to ensure they’re covered for these basic risks.
Besides being a smart way to protect your business, general liability insurance is sometimes required to get a business license or rent commercial property. Some clients may also require this coverage before agreeing to work with you.
The following examples show how different types of business owners can benefit from general liability coverage:
- Some contractors need general liability insurance to meet the license requirements in their state.
- Clients often require house cleaning services to have general liability coverage before they hire them.
- A retail business that wants to rent a commercial space may have to provide proof of coverage before signing a lease.
How much does General Liability insurance cost?
At NEXT, it can cost as little as $19 monthly for some businesses†. Nearly half of our customers pay less than $45 per month for general liability insurance coverage*.
However, your premium’s cost depends on several risk factors, including your business location and operations. Businesses with a higher level of risk generally pay more than those with low risk levels.
Learn more about general liability insurance costs.
What is a Business Owner’s Policy (BOP)?
A business owner’s policy (BOP) is a bundle that includes two types of business insurance: general liability insurance and commercial property insurance.
In addition to covering the same type of risks as general liability, like customer injuries and damage to someone else’s property, it also covers events that affect equipment, inventory and the physical location of your business.
One of the key advantages of a business owner’s policy is that it saves money. Bundling two types of insurance into one package costs less than buying them separately.
What does a Business Owner’s Policy cover?
With a BOP policy, you’ll get general liability and commercial property coverage to help protect your business finances.
General liability insurance can cover common risks, like bodily injury and damage to someone else’s property. It also covers accusations of libel and slander.
Commercial property insurance can help cover accidents involving business goods, gear, equipment and inventory. It can include business interruption insurance if your business is forced to close due to an event covered by your policy.
Who needs a Business Owner’s Policy?
Many businesses can benefit from having a business owner’s policy to help protect against significant financial losses. Because it includes two types of insurance, it offers more coverage, usually with the added advantage of a lower price for bundling the policies together.
Regardless of what line of work you’re in, there’s a good chance that you could benefit from a BOP. Here are just a few examples from different professions:
- A customer trips over uneven flooring in a coffee shop and gets hurt. General liability insurance can help cover expenses for medical bills and legal defense costs.
- High-value equipment is stolen from a construction site overnight. Commercial property insurance can help cover replacement costs.
- A fire causes significant damage to a beauty salon. Commercial property coverage can help pay for costs to fix the damages and lost business income while the salon is closed for repairs.
How a BOP can save you money
NEXT customers automatically save up to 10% when choosing a BOP rather than purchasing general liability and commercial property insurance separately.*
How do General Liability insurance and a BOP work together?
Most businesses need general liability insurance to protect against unexpected expenses involving customer injuries and damage to someone else’s property. Whether you choose a stand-alone general liability policy or a business owner’s policy, you get that coverage.
When comparing a business owner’s policy vs. general liability insurance, you can expect similar coverage for these types of risks:
- Bodily injury
- Property damage
- Libel and slander
While both types of insurance help cover expenses related to unforeseen accidents, a business owner’s policy offers more protection because it also includes commercial property insurance.
Similar restrictions apply with both a BOP and general liability insurance, such as:
- Only covers accidental damage, not intentional damage. You won’t be covered if you attack someone or knowingly cause harm.
- Restricting coverage to a specific area. If you go outside your “coverage territory,” you won’t have the same protections.
- Covering injuries to third parties only. To get coverage for injuries to you or your employees, you’ll need workers’ compensation insurance.
Do you need both General Liability and a Business Owner’s Policy?
Since a BOP includes general liability insurance, you won’t need both. Instead, you’ll just need to decide which option makes the most sense for your business.
General liability is recommended for most businesses. But not all businesses need a BOP.
Generally, a business owner’s policy may be a good fit for your business if you:
- Interact with customers and the public
- Run your business out of a physical location that you lease or own
- Have equipment or inventory that could get stolen or damaged
- Would have to shut down business operations if your property is stolen or damaged
How NEXT helps protect small businesses
NEXT’s small business insurance options are convenient and affordable.
We have customized insurance tailored to your business. If you’re not sure whether general liability insurance or a BOP is right for you, we’re here to help.
Start an instant quote, answer a few questions and choose your coverage. You can do everything 100% online in about 10 minutes and get an immediate certificate of insurance.
Start a free quote with NEXT today.
