General Liability, Professional Liability and BOP: Which One Is Right for You? 

The right business insurance is a critical investment for your organization. However, assessing, acquiring and retaining appropriate coverage can be complicated since your company may need to research and consider many options. You may want to consider three common and essential policies: general liability insurance, professional liability insurance and business owners policies (BOPs).

What is General Liability Insurance?

Also known as commercial general liability insurance, this type of coverage can render aid for third-party losses and legal costs if your business is at fault. Specifically, you can file a claim in the wake of the following types of incidents affecting others:

• Bodily injuries

• Property damage

• Personal and advertising injuries (e.g., slander, libel and copyright infringement)

What is Professional Liability Insurance?

Professional liability insurance, also known as errors and omissions insurance, can help manage legal expenses if a client, customer or other party accuses your business of providing inadequate advice or services. While exact coverage details may vary, your policy can likely respond to the following allegations:

• Professional errors

• Inaccurate guidance

• Missed deadlines

• Negligence

• Omissions

• Misrepresentations

• Oversights

• Breaches of contract

What is a BOP?

A business owners policy can be a cost-effective and convenient solution typically intended for small- and medium-sized companies. BOPs work by bundling the following frequently needed types of insurance under a single arrangement:

• General liability insurance (see above)

• Commercial property insurance, which can assist with losses involving your physical assets, such as buildings, equipment and furniture

• Business interruption insurance, which may compensate your company for ongoing expenses and losses should you be forced to delay normal operations

Which Coverage is Right for My Business?

When weighing these types of insurance, you should consider your business’s unique circumstances. General liability insurance is typically advisable for nearly all businesses, but especially important for those that dispatch employees to off-site locations or welcome clients and guests to their premises.

Given that BOPs inherently include general liability insurance, if you also see yourself needing its other components, you should strongly consider purchasing this type of policy. Doing so can help you save on total costs compared with purchasing each form of insurance separately. However, eligibility may be limited depending on your organization’s size.

Professional liability insurance is a staple of suitable risk management and loss control measures if your business offers professional advice or services. Even the most experienced and diligent companies can make mistakes, and a slight miscalculation or lapse in attention may be all it takes for you to end up facing a costly lawsuit.

Get the Right Coverage

Contact Legacy Insurance today to learn more about your business’s coverage options or get a free quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.