Business Owner’s Policy vs. General Liability Insurance

General liability is a critical component of business owner’s policies. Business owner’s policies combine general liability and commercial property coverage to give small businesses the essential coverage they need in one smart package.

Business Owner’s Policy = General Liability + Commercial Property

General liability insurance pays for settlements and legal fees when someone files a lawsuit against your business for bodily injury or property damage. General liability will also cover defamation claims, troubles with advertising, and infringement of copyright. This coverage is a staple and is the first thing you should secure as a business owner. 

If you want a full package, you can purchase general liability coverage as part of a Business Owner’s Policy. These insurance policies combine general liability insurance and commercial property insurance to protect the interests of your space.

Commercial property insurance will pay to repair or replace business property that is damaged, destroyed, or stolen. You are covered in the case of fire, theft, and physical damage to the business property. Not only is the physical space your business occupies covered, but so are your supplies, equipment, and inventory.

Protect Your Property With a Business Owner’s Policy

Why does your business need a business owner’s policy? Simple. This type of coverage is tailor-made to suit your small business and offers the basic coverages you need to be protected against damages to your property and assets.

To qualify for a Business Owner’s Policy, your business must meet a few criteria. You must be part of a low-risk industry and have fewer than 100 employees. You must also have less than $1 million in annual revenue and have a small commercial space.

How a Business Owner’s Policy Works

Someone sues your small business. You can use the coverage from your general liability through your business owner’s policy to pay for the legal and processing fees to defend yourself.

Suppose someone vandalizes your storefront or steals your equipment. In that case, your policy can help pay to repair the damage and replace lost goods so you can return to business as normal with minimal interruption.

Having a business owner’s policy acts as your safeguard and the first line of defense. It acts as essential coverage to protect your physical assets and financials in the event of a lawsuit.

Does your business qualify for a business owner’s policy? Find out today by calling the agents at All Things Insurance. Our team will set you up with the toolkit you need to keep your business running smoothly.