Which is Right For My Business: General Liability or Business Owner’s Policy

Our Blog

Which is Right For My Business: General Liability or Business Owner’s Policy

By Zuma Insurance Services | October 16, 2018

Business owner insurance quote CA

Starting a business involves risk – risk that is best managed through insurance. As a business owner, there are a number of different types of policies you may be interested in. Two of the most common types of insurance for business owners in CA are “general liability” insurance and “business owner’s policy” insurance.

The Different Types of Insurance for Business CA Insurers Offer

Though every business is different, there are a few types of insurance that nearly every business owner needs. These are:

  • General liability insurance: This protects you from property damage and medical expenses related to incidents that your business is liable for, in addition to the cost of litigating these issues. If a customer gets hurt on your worksite or one of your employees damages a customer’s property, this is the type of insurance that will protect you.
  • Property insurance: Property insurance protects your real property, such as your business location. Your property insurance will kick in if your building is damaged by fire or vandalism, or if theft occurs. Property insurance scales to the value of your property.

Different types of insurance for business CA

  • Business interruption insurance: If your business isn’t able to operate, business interruption insurance will cover a certain amount of your ordinary operating income. This will prevent you from experiencing significant cash flow issues during your downtime.
  • Workers compensation insurance: Workers compensation is a required type of insurance policy for those who have employees. Workers compensation covers all injuries that occur during the course of work, even if that injury was the employee’s fault. The exception is if there was clear negligence or if an employee was actively going against protocol.

What is a business owner’s policy? A business owner’s policy is a type of all-encompassing insurance policy that contains property insurance, liability insurance, and business interruption insurance in a single package. Thus, it’s up to you whether your business only needs general liability protection or if your business needs a complete business insurance package.

The Advantages of a General Liability Insurance Policy

A general liability policy is all a small business or solo entrepreneur may need to get started. If your business does not have a significant amount of equipment or property, then a general liability will cover a significant portion of your risk. General liability insurance alone is more affordable than a bundled policy and it may be easier to manage, as there will only be a single company to deal with and a single bill to pay. This type of insurance may be what a company starts out with before needing to expand into other insurance options.

The Advantages of a Business Owner’s Policy

Most companies are going to need, at minimum, both general liability and property insurance. A business owner’s policy is a comprehensive bundle that gives you all the insurance policies most businesses are likely to need, saving you money by combining them. However, because a business owner’s policy may be different from company to company, you should still carefully review each business owners insurance quote CA.

With a single business owner’s policy, you only have one point-of-contact for many of your insurance needs. BOPs are tailored to different companies and industries their risk, to ensure that businesses have exactly the amount of insurance that they need.

Business owners insurance quote CA

Key Takeaways

  • A general liability insurance policy will be more affordable if you have limited property to protect. It’s ideal for startups and lean enterprises.
  • A business owner’s policy will save you money if you need multiple types of insurance and will make it easier for you to manage your policy
  • Both types of insurance can be tailored to an organization’s needs for coverage and potential for risk.

Depending on the structure of your organization, either a general liability policy or a business owner’s policy could be best for you. If you want to get a business owner insurance quote today, contact Zuma Insurance.