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General Liability vs. a Business Owner's Policy: Which Do You Need?

General liability costs about $45 a month. A business owner's policy costs about $83 and adds property coverage. See them side by side and how to choose.

Published September 24, 2026 · Updated September 30, 2026 · 2 min read

Quick answer

General liability pays when you hurt someone or break their things. A business owner's policy (BOP) does that too. It also covers your own building, tools, and stock, and often lost income. If you own business stuff worth protecting, a BOP is often the better deal.

Side by side

General liabilityBusiness owner's policy (BOP)
Average costAbout $45 a monthAbout $83 a month
Injuries to othersYesYes
Damage to others' propertyYesYes
Advertising injuryYesYes
Your building, tools, and stockNoYes
Lost income after a covered lossNoOften
Best forFreelancers, advisers, work done at clients' placesShops, offices, stores, cafes, salons

Averages from Insureon's 2026 small business data. Your price comes from the insurance company.

The cost difference

A BOP costs more because it covers more. But it usually costs less than buying the two parts on their own: general liability plus commercial property.

What general liability covers

  • A customer slips and gets hurt at your shop.
  • You break something at a client's home or office.
  • Someone sues over an ad, like a photo you didn't have the right to use.

What a BOP adds

  • Your stuff: your building (if you own it), tools, furniture, stock, and supplies.
  • Lost income: often included. It helps pay you if a fire or storm makes you close for a while.

Who should choose general liability alone

  • You work from home or at your clients' places.
  • You don't own many work tools or much stock.
  • A client or landlord just wants proof that you're covered.

Think freelancers, advisers, and many service pros.

Who should choose a BOP

  • You have a shop, office, or store.
  • You own tools or stock that would cost a lot to replace.
  • A fire or storm that closed you for weeks would hurt your income.

Think small stores, cafes, salons, and offices.

Not every business can get a BOP

BOPs are made for small, lower-risk businesses. Insurers may say no to bigger or riskier ones. If that's you, you can buy the two parts on their own.

What neither one covers

  • Your own workers getting hurt. You need workers' comp. Most states require it once you have workers.
  • Bad advice or mistakes in your work. You need E&O coverage.
  • Cars and trucks you use for work. You need commercial auto.
  • Hacks and stolen data. You need cyber coverage.
  • Tools away from your shop, in many cases. Look at inland marine.

Questions to ask when you compare

  • Does the BOP pay lost income, and for how long?
  • Will it pay to replace my things new, or only what they're worth used?
  • Can I add a client or landlord as an "additional insured"?
  • How fast can I get a certificate of insurance?
  • What else do I need, based on my type of business?

Related pages

Core business insurance: Small business insurance cost · General liability · Workers' comp · Business owner's policy · Professional liability · Commercial auto · Commercial property · Cyber insurance · LLC insurance · Home-based business insurance · All business services

Questions people ask

General liability covers harm to other people and their property. A BOP adds coverage for your own property and often lost income.

Usually, yes. Bundling them in a BOP often costs less than buying both apart.

Maybe not. If you don't own much business property, general liability alone may be enough. Check what your home policy covers for business equipment.

No. Workers' comp is a separate policy.
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