What is the primary difference between a Business Owner's Policy (BOP) and a Commercial General Liability (CGL) policy?

The primary difference between a Business Owner's Policy (BOP) and a Commercial General Liability (CGL) policy is that a BOP combines property and liability coverage into a single package designed for small to medium-sized businesses. This means that a BOP provides comprehensive protection, offering coverage not only for property damage, business interruption, and loss of income due to insured events but also for liability claims arising from bodily injury or property damage that occurs as a result of the business operations.

In contrast, a CGL policy is focused solely on general liability coverage. It protects businesses from claims involving bodily injury, property damage, and certain personal and advertising injuries that may occur during the course of business. While it is a crucial component of a business’s risk management strategy, it does not include property coverage, which is an essential aspect of a business’s overall insurance needs.

Therefore, the ability of a BOP to provide a holistic approach to both property and liability under one policy makes it especially useful for small businesses looking for comprehensive yet affordable insurance solutions.