General liability vs. a business owner’s policy

Start with what general liability is meant to address

Commercial general liability can address covered claims involving injury to another person or damage to someone else's property. Personal and advertising injury provisions may also be relevant, subject to their definitions and exclusions. It is worth asking how the policy treats your particular products, services and completed work.

A liability limit is not a fund for every problem the business encounters. Professional mistakes, vehicle accidents, employee injuries and cyber events can require different coverage. When asking whether something is covered, describe the activity and possible loss rather than relying on the word liability alone.

Look inside the BOP package

A business owner's policy commonly combines selected property, liability and business income protection. Eligibility depends on the business and insurer. A package can be convenient, but compare the coverage schedule and endorsements instead of assuming the name guarantees a standard set of features.

Property limits should reflect the actual assets being insured: furniture, equipment, inventory, tenant improvements or a building, as applicable. Ask about valuation, deductibles, off-premises restrictions and special limits. General liability alone does not provide a substitute for insuring the business's own equipment against a covered property loss.

Give business income its own discussion

Business income coverage has a trigger, covered period, limits and conditions. It is not a promise to replace revenue whenever business slows down. Ask what event must happen, whether there is a waiting period and what records would support a claim under the proposed policy.

Prepare a description of the costs that continue during an interruption and the ways the business could temporarily operate elsewhere. The purpose is to help the broker ask useful questions about the proposed coverage, not to assume every expense or interruption will qualify.

Compare three illustrative business situations

A consultant working from a small office might begin with a liability request, then discover that professional-services allegations need a separate discussion. A retailer may need to examine stock, fixtures and business income as well as customer injury claims. A contractor may need to distinguish job-site liability from tools that travel and vehicles used for work.

These examples do not prescribe a policy for an occupation. Two businesses with the same label can perform different work, use different subcontractors or hold different property. Describe the actual operation so the proposal can address those distinctions.

Translate contract requirements into coverage questions

Provide the actual lease or customer insurance requirements, including the correct legal entity and any requested endorsements. Ask whether the proposed policy satisfies each item and whether additional terms or insurer approval are needed. A general statement that the customer needs a certificate may leave important requirements undiscovered.

Check per-occurrence and aggregate limits, additional-insured requests and any requirements connected to completed operations. A certificate of insurance summarizes selected information; it does not independently change the policy. Keep the endorsement question separate from the document-delivery question.

Compare a package with separate policies fairly

Create a row for each exposure and mark where it is addressed: liability, property, business income, vehicles, employees, professional services and digital operations. A blank row is a question to resolve, not automatic proof that coverage is missing or required. Some exposures may not apply to the business.

Then compare the limits, deductibles, exclusions, payment terms and full premium. Ask whether sales, payroll or another exposure estimate may be subject to audit. A lower starting premium is hard to evaluate if the underlying business description or estimated exposure is different.

• Legal business name, locations and a specific description of operations.
• Estimated revenue, payroll, staffing and subcontractor use.
• Property and equipment values, including items used away from the premises.
• Current policies, claims information and contracts with insurance requirements.

Common questions.