Business Owner’s Policy (BOP)

A business owner's policy may be convenient for small businesses because it typically combines commercial general liability insurance and commercial property and liability coverages into one policy. While the terms, conditions and exclusions of each BOP policy will vary, BOPs generally cover the following:

Commercial buildings
Business personal property
Business interruption
Third-party bodily injury liability
Third-party personal and advertising liability

A BOP can help cover legal fees and court costs in the event that a covered claim is filed against a business. A standalone commercial general liability insurance policy is typically not necessary if a business has a BOP in place.

Commercial General Liability Insurance (CGL)

This type of coverage is another common policy option for small businesses. Commercial general liability insurance policies help protect business owners against financial liability arising from certain third-party claims. While the terms, conditions and exclusions will vary, a CGL policy generally covers third party bodily injury and property damage claims and may also cover claims related to slander and libel. As a third party liability coverage, CGL policies generally do not cover damages to the business’s own property or bodily injury suffered by the business owner or its employees. Some leasing contracts may require commercial general liability insurance to be maintained by businesses renting property.

Having the right insurance in place is an important risk management tool which can help navigate what could otherwise be a challenging situation.