When is a General Liability and Package Insurance Policy Your Best Bet?
Commercial Insurance – Business Owners Policy, BOP
Commercial insurance may be available in an affordable, General Liability and property package policy known as a Business Owner’s Policy, or BOP, if yours is a small business to a medium-sized business operating in a low-risk business class.
A BOP combines General Liability insurance and Property insurance in a single commercial insurance policy. For many growing companies, BOPs offer great small business insurance coverage at very competitive premiums.
Business Insurance Package Policy
A General Liability and property package policy includes General Liability insurance to cover your commercial liability and property insurance for physical assets, such as contents, that are leased or owned. The package insurance policy may also cover loss of business income and extra expense resulting from an insured peril. A business insurance package policy generally insures lost or damaged property for replacement value, which means you’ll receive a settlement amount sufficient to replace the property without deducting for depreciation. The Property insurance portion of a General Liability and property package policy also covers other people’s personal property to the extent that the business owner is legally liable for the damage.
Commercial General Liability Insurance – CGL
The General Liability insurance coverage of a BOP is comparable to a typical Commercial General Liability (CGL) policy, providing protection against claims of bodily injury or property damage for which your business may be liable. Insurance to Protect You Against Lawsuits Unfortunately for every business owner, the chances of getting sued have dramatically increased in the last decade. Fortunately for small business owners, Here are just a few of the ways liability insurance can protect your business.
Who This Policy Would Cover
The General Liability policy extends liability protection to a number of people involved in your business.
- If your business is a partnership or joint venture, this policy would cover all partners or members and their spouses — but only if they’re sued because of something they did while acting in an official capacity for your business.
- If your business is a corporation or association, this policy would also cover all executive officers, directors, and stockholders — while acting in these official capacities.
- Your employees would also be protected — while they are acting in their capacity as employees.
- Your policy would also extend liability coverage to any subsidiary for which you own more than 50% of the voting stock.
- Any person or organization, such as a vendor, with whom you have a written agreement to indemnify, would also be protected against liability claims for any bodily injury or property damage that results from distributing or selling your products.
- Any newly acquired organization would also be protected under your policy for 90 days to newly acquired companies.
- Your legal representatives would also be afforded liability coverage under this policy — for any liability arising from the maintenance or use of your property in their care.
- While acting under your direction and within the scope of their responsibilities for you, any volunteers for your business would also be extended liability coverage.
What Expenses This Policy May Cover
A General Liability policy is designed to provide financial protection in case your business is ever sued or held legally responsible for some injury or damage. Typical expenses this policy may cover include:
- Amount the insurer spends to investigate or defend the claim or suit brought against you;
- Other costs incurred directly by the insurance company, such as attorney’s fees, witness fees, and police report costs;
- Any court costs or other costs assessed against you in a suit;
- Reasonable expenses you incur at the insurance company’s request to aid in your defense against a claim (such as your loss of income for a day spent in court);
- Any judgment or settlement arising from a covered suit;
- Any required interest on the judgment if the defense is unsuccessful;
- Medical expenses for injured parties;
- Premiums for any bonds required by a liability suit.