Public vs. General Business Liability Insurance (2024)

FAQs

What is the difference between a BOP and a CGL? ›

The main difference is what is covered under each policy. BOPs combine commercial general liability with property damage coverage, while CGL policies typically only cover third party liability claims (and do not cover property damage for a business's own property).

Only general liability insurance can spare your business from lawsuits over a visitor slipping and falling on your commercial property. And only professional liability insurance can shield you from the high cost of alleged professional mistakes that cause a third party financial losses.

Public liability or PLI insurance covers injuries and damages suffered by third parties on your business premises. Commercial general liability insurance protects you against those costs and a great deal more.

General liability insurance helps protect you from claims that your business caused bodily injury or property damage. It can also protect you if someone sues you for advertising injury. Commercial property insurance covers your business' physical location and equipment, whether you own or lease it.

You can think of it this way: General liability insurance only covers certain liability losses. BOP covers those same liability and some losses to property that your business owns.

In summary, while CGL policies provide broad coverage for general business liabilities, policyholders should be aware of common exclusions like expected harm, contractual obligations, pollution, aircraft/watercraft, and professional services.

CGL policies cover claims of property damage, personal injury (such as libel or slander), bodily injury, and advertising injury. This coverage will help you pay attorney fees or settlement costs in the event of a lawsuit.

Usually, the named insured/s in a CGL policy are the following entities: The individual. The business (legal name), which could be a sole proprietorship, partnership, limited liability company, a trust, or another type of organization.

General liability covers physical risks, such as bodily injuries and property damage. Professional liability insurance covers more abstract risks, such as errors and omissions in the services your business provides.

Commercial General Liability (CGL) insurance protects business owners against claims of liability for bodily injury, property damage, and personal and advertising injury (slander and false advertising).

Does a CGL policy cover independent contractors? ›

Liability coverage under a commercial package policy (CPP), businessowners policy (BOP), or commercial general liability (CGL) policy may not automatically provide coverage for independent contractors. However, endorsem*nts can provide the coverage a business needs to protect itself from its contractors' liability.

The CGL policy lists on the declarations six different limits. While the limits are separately listed, it is important to recognize that the limits are all interrelated. That is, payment of damages on one limit will also affect another limit.

Your GLI policy can help pay for your legal fees and settlement costs. Without general liability insurance coverage, your business would have to pay out of pocket for costly claims that could come up during normal business operations.

WHAT IS THE DIFFERENCE BETWEEN A BOP (BUSINESSOWNERS POLICY) AND CPP (COMMERCIAL PACKAGE POLICY)? A BOP is a bundled package of coverages designed for the average small- to medium- sized risk. A CPP is more of a cafeteria style policy where each coverage is tailored to the specific risk and needs of the business.

When looking at the two coverage plans, it is important to know that Umbrella Liability is not simply separate from, but rather it is in addition to Commercial General Liability. That is, Commercial General Liability provides basic business coverage, as a coat would in cold weather.

BOP Policy Forms

The BOP is a package policy that provides commercial property and CGL coverage. However, it is written using special businessowners forms and endorsem*nts, rather than monoline commercial property and CGL forms.

Has fewer than 100 employees. Has less than $5 million in annual sales. Has property or equipment you want to protect.

CGL Coverage B provides important supplemental liability coverage to Coverage A's insurance for accidental bodily injury and property damage claims. Coverage B's personal and advertising injury coverages insure a variety of business torts, including claims for intentional acts and intangible damages.

A blowout preventer (BOP) (pronounced B-O-P) is a specialized valve or similar mechanical device, used to seal, control and monitor oil and gas wells to prevent blowouts, the uncontrolled release of crude oil or natural gas from a well.