While you may be aware of the limitations and cost of a general liability policy, you may not be familiar with the differences between a business owner’s policy and a public liability policy. This article will explain the differences and help you choose which approach is best for your needs. In addition, you’ll learn about the costs and exclusions of each. Read more about general liability and business owners’ policies.
Business owner’s policy
While general liability insurance protects your business from lawsuits, business owner’s policies cover property losses. Property loss coverage is a must for any business owner. A Business Owner’s Policy covers the property, inventory, and equipment your company owns. For example, if you own a building or sell products and services on other people’s property, a business owner’s policy protects your business and personal assets. You can also add business interruption coverage, which pays for ongoing expenses and lost income caused by a covered loss.
General liability and business owners’ policies are similar, but depending on your risk level, you can choose between either. Business owners’ policies often include property and general liability coverage, crime coverage, and non-owned or hired car insurance. Both approaches come with additional coverage for potential risks, including employee theft and auto business liability.
General liability policy
There are many differences between a general liability policy and a Thimble business owner’s policy, but the primary purpose is the same. Both are designed to protect a business from the most common risks. Despite their similarities, a general liability policy is more comprehensive than a business owner’s policy. It will cover property damage and liability costs and any business interruption costs. While there are many advantages to a business owner’s policy, it’s essential to weigh the differences and decide which is best for your particular needs.
Many businesses have low liability risks due to minimal foot traffic and low risk of property damage. Common risk industries, such as home-based businesses, are generally low risk. These businesses may qualify for a policy. General liability insurance is essential protection whether you’re renting or owning your own business.
There are many ways to reduce the cost of your liability insurance. Many states require business owners to carry some type of liability insurance, including the ability to prove financial responsibility. However, there are many benefits to having a general liability policy, and obtaining a quote is the most reliable way to find out what you’ll need. These insurance policies are available for purchase separately or as part of your business owner’s policy.
Business Owners Policy (BOP) insurance is typically a bundled policy covering the most common risks. It’s more convenient to get both insurance policies from one company, and the cost can be as low as $500 for a small retail store. Fees vary based on location and optional coverages, but the average price ranges from $500 to $3,500 a year. Many insurance providers have a minimum premium of $250 to $500 per year, depending on the size of the business and its industry.
Limitations of a business owner’s policy
While you may have heard that business owners’ policies are designed to fit the needs of business owners, you need to know the limitations. You may need other types of insurance, such as professional liability or additional expenses coverage. A standard business owner’s policy won’t cover everything. If you’re a fitness instructor or personal trainer, you’ll need separate insurance policies. A fitness instructor’s policy will not cover property or business interruption, while a personal trainer’s policy will not cover electronic data loss.