The combination of general liability and property insurance as a package is commonly known as a Business Owner’s Policy, or a BOP. However, not every business needs the property portion as it all depends on what kind of business you are insuring. One common denominator between the two is that it is important for all business owners to protect themselves, their assets, and their business.
Today’s business owner needs to determine what is important to them. Nearly every type of business could benefit from general liability. If you’re renting a space for example, and it is nearly impossible to conduct business without a space, you would need general liability to protect the business from being sued should a guest, client, or the random person off the street hurt themselves within the premises. Additionally, many landlords require their tenants to have general liability for this very purpose.
The limits for general liability policies tend to be in the millions. 1,000,000 per occurrence and 2,000,000 as the aggregate is standard. But there are other ad ons as well such as personal advertising injury, damage to rented premises, and medical payments. Of particular note, for manufacturers products liability can be especially important should a product malfunction and they receive a lawsuit from the consumer.
Suppose you aren’t concerned with the materials you use to operate your business; there is nothing valuable to insure. In this case you would inquire about a monoline general liability policy. Monoline simply refers to the fact the policy is not part of a package.
However, if you have a nice office with lots of technology or are concerned about expensive machinery such as that of in a dentist office, then you will want to insure the property your business uses as well.
While property can certainly be written on a monoline basis as well, most frequently insurers (the insurance company) will attempt to combine the two into a single policy. A good example of this is a dentist office, you have a finite space in which the office operates and has insured themselves for liability. But what about all of that expensive machinery? In many situations these items aren’t purchased outright and they are required to be insured by a lender, such as a bank.
The limits of property insurance entirely depend on its value. To discuss general liability, property, or package BOP policies it is best to contact an agent to determine what your business really needs.